Filed Pursuant to Rule 424(b)(3)
Registration No. 333-42766
InnovaCom Inc.
Prospectus Supplement No. 3
(To Prospectus Dated August 30, 2000)
You should read this prospectus supplement, prospectus supplements No. 1
and 2, and the related prospectus carefully before you invest. These documents
contain information you should consider when making your investment decision.
On October 6, 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. The first
tranche began on October 12, 2000, ended on October 26, 2000 and settled on
October 30, 2000.
In the first tranche, because we indicated a threshold price of $.25 per
share, Jashell purchased our shares during six business days out of an 11
business day period. During the six business days, Jashell Investments Limited
purchased a total of 498,227 shares of our common stock at an average purchase
price of $0.2190 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 $0.2772 per share. These purchases resulted in aggregate proceeds of
$109,091 being paid to us by Jashell Investments Limited. Further, pursuant to
the common stock purchase agreement, we agreed to pay Jashell Investments
Limited an additional $33,333 for each of the initial six puts.
During the second tranche, 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 October 30, 2000.
