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 (Date of earliest event reported) March 16, 2000
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Generex Biotechnology Corporation
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(Exact name of registrant as specified in its charter)
Delaware 000-25169 82-049021
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(State or other jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
33 Harbor Square, Suite 202, Toronto, Ontario Canada M5J 2G2
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 416/364-2551
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(Former name or former address, if changed since last report)
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Item 5. Other Events.
On March 16, 2000, the Supreme Court of the State of New York, County of
New York, granted the petition of Sands Brothers & Co., Ltd. to confirm an award
rendered in Sands Brothers' favor on October 1, 1999, in an arbitration
conducted under New York Stock Exchange Rule 600(a), and denied our cross motion
to vacate the award. The arbitration involved the enforceability of a "Financial
Advisory Services" agreement (the "Advisory Agreement") dated October 9, 1997,
between Sands Brothers and Generex Pharmaceuticals, Inc., an Ontario corporation
which is a wholly owned subsidiary of ours. In addition to monetary damages of
$14,070, the award includes a declaratory judgment that we take all necessary
action to issue to Sands Brothers a warrant to purchase 1,530,020 shares of our
common stock pursuant to and in accordance with the terms of the Advisory
Agreement.
We intend to appeal the decision, and to date we have made no provision in
our financial statements for any loss in this litigation. If we are unsuccessful
in our effort to vacate the award and are required to issue warrants or other
securities to Sands Brothers under the Advisory Agreement, we will record a
charge to operations, and a corresponding increase to Additional Paid in
Capital, equal to the fair value of the securities issued less any consideration
that we receive for the securities.
We do not believe that the final outcome of this case is reasonably likely
to have a material adverse effect on our consolidated financial position apart
from any charge to operations as described above.
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.
GENEREX BIOTECHNOLOGY CORPORATION
Dated: March 24, 2000 By: /s/ E. Mark Perri
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E. Mark Perri, Chairman and CFO
