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: November 18, 1998
(Date of earliest event reported)
COMPU-DAWN, INC.
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(Exact name of Registrant as specified in charter)
Delaware 000-22611 11-3344575
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(State or other jurisdiction (Commission File No.) (IRS Employer Identification
of incorporation) Number)
77 Spruce Street, Cedarhurst, New York 11516
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (516) 374-6700
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Item 5. Other Events.
On November 18, 1998, Compu-DAWN, Inc. issued a press release (the "Press
Release") announcing that it had increased its loan facility to LocalNet
Communications, Inc. ("LocalNet") by an additional $800,000 or to an aggregate
of $1,800,000, and obtained an option to convert up to $1,000,000 of the loan
principal into a number of shares of LocalNet capital stock up to 40% of
LocalNet's equity. The loan increase and conversion option are more particularly
described in the Press Release, which is attached hereto as Exhibit 99.1
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(c) Exhibits
99.1 Press Release, dated November 18, 1998
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SIGNATURES
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 hereunto duly authorized.
COMPU-DAWN, INC.
Dated: November 18, 1998 By: /s/ Mark Honigsfeld
Mark Honigsfeld
Chairman of the Board
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Exhibit 99.1
Contact: Mark Honigsfeld (516) 374-6700 Ext. 601
COMPU-DAWN INCREASES LOAN FACILITY TO LOCALNET COMMUNICATIONS, INC., A
TELECOMMUNICATIONS AND INTERNET MARKETING BUSINESS, UP TO $1,800,000 AND IS
GRANTED OPTION TO CONVERT PART OF THE LOAN PRINCIPAL INTO 40% OF LOCALNET'S
EQUITY
Cedarhurst, NY November 18, 1998 - Compu-DAWN, Inc. (NASDAQ:CODI) (the
"Company") today announced that the Company increased its loan facility to
LocalNet Communications, Inc. ("LocalNet") by $800,000 or to an aggregate of
$1,800,000. The aggregate principal borrowed, together with interest, is payable
in October 1999. LocalNet granted the Company an option to convert up to
$1,000,000 of outstanding loan principal into a number of shares of LocalNet
capital stock up to 40% of LocalNet's equity on a fully diluted basis. The
Company can exercise the option at any time.
Compu-DAWN, Inc. is in the business of designing, developing, licensing,
installing and servicing computer application and communication software
products and systems for law enforcement and other public safety agencies. The
Company has developed, licensed and installed its system in more than 60
agencies, primarily located in the State of New York and is actively pursuing
use of its technology and resources in other industries.
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This press release may include certain forward-looking statements about the
Company that are based on management's current expectations. Actual results may
differ materially as a result of any one or more of the risks identified in the
Company's filings under the Securities and Exchange Act of 1934.
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