Filed Pursuant to Rule 424(b)(3)
Registration No. 333-42766
InnovaCom Inc.
Prospectus Supplement No. 2
(To Prospectus Dated August 30, 2000)
You should read this prospectus supplement and the related prospectus
carefully before you invest. Both documents contain information you should
consider when making your investment decision.
On August 31, 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
$500,000 of our common stock to Jashell Investments Limited based on the formula
in the stock purchase agreement, during the period beginning on September 1,
2000 and ending on October 3, 2000. The purchase would occur in two tranches. On
September 15, 2000, we completed the first tranche raising in the aggregate
$375,000, which includes $175,000 of common stock purchased by Jashell
Investments Limited pursuant to warrants.
The second tranche began on September 18, 2000 and ended on October 3,
2000. During this period, Jashell Investments Limited purchased a total of
756,298 shares of our common stock at an average purchase price of $0.2479 per
share which represents a 21% discount from the Volume Weighted Average Daily
Price of our common stock as quoted on the OTC Bulletin Board during this period
of $0.3138 per share. These purchases resulted in aggregate proceeds of $187,500
being paid to us by Jashell Investments Limited. Additionally, as part of the
purchase, Jashell Investments Limited exercised warrants to purchase 3,702
shares of our common stock at an exercise price of $0.2479 per share providing
us with an additional $918.
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 after the completion of the offering.
We expect to use the proceeds of this sale of common and upon the
exercise of warrants for cash issued to the Jashell Investments Limited pursuant
to this sale of common stock for working capital.
The date of this prospectus supplement is October 5, 2000.
