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: March 17, 2000
STARNET COMMUNICATIONS INTERNATIONAL INC.
(Exact name of registrant as specified in its charter)
DELAWARE 0-29290 52-2027313
(State of incorporation) (Commission File Number) (IRS Employer ID No.)
Newgate Street
PO Box 3265
St. John's, Antigua
West Indies
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (268) 480-1651
(Former name or former address, if changed since last report)
INFORMATION INCLUDED IN THIS REPORT
Item 5. Other Events
Pursuant to the terms of a letter agreement dated for reference March 17,
2000, the Registrant has completed the sale of substantially all of the
assets and undertakings comprising the adult entertainment division of
Starnet Communications Canada Inc. ("Starnet Canada"), a wholly owned
subsidiary of the Registrant incorporated in British Columbia, Canada.
Specifically, Starnet Canada has sold to 596773 B.C. Ltd. (the "Purchaser")
the material business assets of Starnet Canada's adult entertainment
division, including all equipment, website content, material agreements and
all interest of Starnet Canada in 600636 British Columbia Ltd., a
subsidiary of Starnet Canada that was incorporated for the purpose of
holding registered title to all URLs (domain names) used in connection with
the adult entertainment division.
The disposition of the adult entertainment division was voluntarily
initiated by management of the Registrant with a view to focusing the
business of the Registrant on its core online gaming activities.
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The purchase price for the assets was US$2.3 million, of which US$460,000
was paid on March 31, 2000 and the balance of which will be payable in
monthly installments to and including July 1, 2003. The deferred portion
of the purchase price is secured by a general security agreement in favour
of Starnet Canada, and a pledge of the shares of 600636 British Columbia Ltd.
The Purchaser is a British Columbia company, which the Registrant is
advised is acting as agent for a related company, Kiama Ltd. of Jersey,
Channel Islands. The Purchaser and Kiama Ltd. are and were at all times at
arm's length to the directors and officers of the Registrant. Management
of the Registrant is advised that the Purchaser acted as an intermediary of
Kiama Ltd. of Jersey, Channel Islands. One of the principals of the
Purchaser, Doug McLelland, was formerly the general manager of the adult
entertainment division and an employee of Starnet Canada. On the closing
of the sale, Starnet Canada terminated the employment of Mr. McLelland and
the other employees of the adult entertainment division.
Reference is also made to the press release issued to the public by the
Registrant on April 18, 2000, the text of which is attached hereto as
Exhibit 99.1.
The disposition of the adult entertainment division is being reported as a
voluntary item under Item 5 because the quantity of assets involved does
not meet the specifications of Item 2 (Acquisition or Disposition of Assets).
Item 7. Financial Statements and Exhibits
(c) Exhibits
99.1 News Release dated April 18, 2000
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, thereto duly authorized.
STARNET COMMUNICATIONS INTERNATIONAL INC.
Date: June 14, 2000 BY: /s/ Meldon Ellis
Name: Meldon Ellis
Title: President and CEO
