Filed Pursuant to Rule 424(b)(3)
Registration No. 333-42766
InnovaCom Inc.
Prospectus Supplement No. 5
(To Prospectus Dated August 30, 2000)
You should read this prospectus supplement, prospectus supplements No. 1
through 4, and the related prospectus dated August 30, 2000, carefully before
you invest. These documents contain information you should consider when making
your investment decision.
On November 13, 2000, we issued a drawdown notice to Jashell Investments
Limited in connection with the common stock purchase agreement dated June 19,
2000, as amended on July 26, 2000, evidencing an equity draw down facility
between us and Jashell Investments Limited. The notice offered to sell up to
$400,000 in the aggregate of our common stock to Jashell Investments Limited
based on the formula in the stock purchase agreement in two tranches during a 22
business day period. The first tranche began on November 14, 2000, ended on
November 29, 2000 and settled on December 4, 2000.
During the 11 business days, Jashell Investments Limited purchased a total
of 1,853,736 shares of our common stock at an average purchase price of $0.1079
per share which represents 79% of the Volume Weighted Average Daily Price of our
common stock as quoted on the OTC Bulletin Board during this period of $0.1366
per share. These purchases resulted in aggregate proceeds of $200,000 being paid
to us by Jashell Investments Limited. Further, pursuant to the common stock
purchase agreement, we issued Jashell Investments Limited a warrant to purchase
926,868 shares of common stock at $0.1079 per share during a 22 business day
period. In connection with our November 13, 2000, draw down notice, we indicated
no threshold price.
The attached prospectus relates to the resale of shares acquired by Jashell
Investments Limited pursuant to the stock purchase agreement and pursuant to the
exercise of warrants held by Jashell Investments Limited. Because Jashell
Investments Limited may sell some or all of these shares, and because there are
currently no agreements, arrangements or understandings with respect to the sale
of any of these shares, we cannot estimate the actual amount of shares that they
will hold, if any, after the completion of the offering.
The proceeds from the sale of common stock issued to the Jashell
Investments Limited will be used for working capital.
The date of this prospectus supplement is December 4, 2000.
