SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-------------------
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: June 30, 1998
SAC TECHNOLOGIES, INC.
(Exact Name of Registrant as Specified in its Charter)
Minnesota
(State or other jurisdiction of incorporation)
1-13463 41-1741861
(Commission File Number) (IRS Employer Identification No.)
4444 West 76th Street, Suite 600
Edina, MN 55435
(Address of principal executive offices)
(612) 835-7080
(Registrant's telephone number, including area code)
-------------------
<PAGE>
ITEM 5. OTHER EVENTS
On June 30, 1998 the registrant sold $2.5 million of its 5% convertible
debentures due June 30, 2001, along with five-year warrants to purchase 100,000
shares of common stock exercisable at $7.287 per share, to The Shaar Fund Ltd. A
copy of the related press release dated July 6, 1998 issued by the registrant is
filed as an exhibit hereto.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits.
99.1 Press Release dated July 6, 1998, issued by SAC Technologies,
Inc.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
SAC Technologies, Inc.
July 7, 1998 By /s/ Gary Wendt
----------------------------------------
Gary Wendt
Chief Financial Officer
EXHIBIT 99.1
At SAC Technologies, Inc.
Joseph A Girouard
Corporate Communications Manager
702-798-9777
[email protected]
FOR IMMEDIATE RELEASE
MONDAY, JULY 6, 1998
SAC TECHNOLOGIES, INC. ANNOUNCES
SALE OF 5% CONVERTIBLE DEBENTURES
MINNEAPOLIS, MN - JULY 6, 1998 - SAC Technologies, Inc. (Nasdaq SmallCap:SACM),
announced today that it has sold to The Shaar Fund Ltd., an international
investment fund, $2.5 million of 5% convertible debentures due June 30, 2001,
and five-year warrants to purchase 100,000 shares of common stock exercisable at
$7.287 per share. At the option of SAC, an additional $1.0 million of
convertible debentures may be sold to The Shaar Fund Ltd. upon the occurrence of
certain events, including certain minimum share price and trading volume levels
for SAC's common stock.
The debentures are convertible into shares of SAC's common stock in increments
beginning 120 days from June 30, 1998 and are fully convertible after 181 days.
The conversion price equals the lesser of (a) 110% of the closing bid price of
the common stock on June 29, 1998, or (b) the average closing bid price for a
five-day period ending the day prior to the notice of conversion multiplied by a
discount factor, which discount will increase from 15% to 22% the longer the
convertible debentures are held and not converted. The convertible debentures
are redeemable at the option of SAC under certain circumstances. SAC is
obligated to file on or before August 14, 1998 a registration statement covering
the resale of the shares of common stock underlying the debentures and the
warrants.
SAC intends to use the proceeds from the sale of the convertible debentures for
working capital and other general corporate purposes. The securities have been
offered pursuant to an exemption from registration and contain certain
registration rights. The securities may not be offered or sold in the United
States absent registration or an applicable exemption from registration.
