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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF SECURITIES ACT OF 1934
Date of Report (Date of earliest event reported): JANUARY 7, 1999
FirstWorld Communications, Inc.
(Exact name of registrant as specified in its charter)
DELAWARE 0-24953 33-0521976
(State or other jurisdiction (Commission File Number) (I.R.S. Employer
of incorporation) Identification No.)
7100 E. BELLEVIEW AVENUE, SUITE 210, GREENWOOD VILLAGE, COLORADO 80111
(Address of principal executive offices)
Registrant's telephone number, including area code: (303) 874-8010
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This Current Report on Form 8-K is filed by FirstWorld Communications,
Inc., a Delaware corporation (the "Company"), in connection with the
transactions described herein.
ITEM 5 - OTHER EVENTS
On January 7, 1999, the Company purchased all of the outstanding capital
stock of Accelerated Information, Inc., a California corporation ("AI"), in
exchange for an aggregate of $10,094,379.72 and 187,500 shares of the
Company's Series B Common Stock. By virtue of its acquisition of all of the
outstanding capital stock of AI, FirstWorld also acquired Slip.Net, Inc., a
California corporation and a wholly owned subsidiary of AI ("Slip.Net").
Slip.Net is an ISP engaged in the business of providing Internet access, web
hosting services, support for e-commerce and co-location services primarily
in the San Francisco Bay area. The Company also repaid $355,620.28 of
long-term debt of Slip.Net at the closing and by virtue of the acquisition
assumed certain capital lease obligations.
The Company deposited an aggregate of $1,450,000 of the total purchase
price into an escrow account for the purpose of satisfying claims made by the
Company for breach of representations, warranties or covenants made by the
selling shareholders in the Stock Purchase Agreement on behalf of themselves,
AI and Slip.Net. Absent a claim for indemnification all of the funds in the
escrow account other than those specifically allocated to tax matters will be
released to the selling shareholders on the first anniversary of the closing.
The Company used available cash to fund the acquisition.
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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.
Date: January 20, 1999 FirstWorld Communications, Inc.
By: /s/ SHELDON S. OHRINGER
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Sheldon S. Ohringer
Chief Executive Officer and President
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