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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
The Securities Exchange Act of 1934
Date of Report: August 17, 2000
DYNAMIC I-T, INC.
(Exact name of registrant as specified in its charter)
Colorado 0-12139 2-0379959
(State or other (Commission File Number) (IRS Employer
jurisdiction of Identification No.)
incorporation)
2504 Eleventh Street, Santa Monica, California 90405
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (310) 392-8179
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Item 2. Acquisition or Disposition of Assets
On August 2, 2000, Dynamic I-T, Inc., a Colorado corporation ("Dynamic" or
the "Company") completed the acquisition valued at $7,027,554 of LM Hungary
Parts Supply and Distribution Co. Ltd., a company organized under the laws of
Hungary ("LM"). The transaction was consummated pursuant to a Quota Sale and
Purchase Agreement dated as of August 2, 2000 (the "Purchase Agreement") by and
between Dynamic and Mannai Corporation Limited ("Seller" or "Mannai"). Mannai
was the sole owner of LM which had been registered under registration number
01-09-076254 on February 19, 1992 by the Metropolitan Court of Budapest as Court
of Registration.
The primary asset of LM consists of real property. Pursuant to the
Purchase Agreement, Dynamic acquired LM for consideration consisting of cash in
the amount of $500,000, 700,000 shares of Dynamic valued at $2,105,904 and the
assumption of debt in the amount of $4,421,650 payable to Complex Holdings
Limited ("Complex"), a related party.
The terms of the transaction are more fully described in the Purchase
Agreement filed as Exhibit 2.1 to this report and incorporated herein by this
reference.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(a) Financial Statements of Businesses Acquired.
The following historical financial statements of LM will be filed by an
amendment to this report on or before October 16, 2000:
1. Balance Sheet at December 31, 1999; March 30, 2000; and June 30,
2000.
2. Statement of Operations for the year ended December 31, 1999; and
three months ended March 31, 2000 and June 30, 2000.
3. Statements of Changes in Stockholder's Equity Deficit for the year
ended December 31, 1999; and three months ended March 31, 2000 and June
30, 2000.
4. Statement of Cash Flows for the year ended December 31, 1999; and
three months ended March 31, 2000 and June 30, 2000.
5. Notes to Financial Statements.
(b) Pro Forma Financial Information
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The pro forma balance sheet of Dynamic as of March 31, 2000 and June
30, 2000, and the related pro forma statements of operations for the fiscal year
ended March 31, 2000 and the three month period ended June 30, 2000 which will
reflect the acquisition of LM as if it had occurred on April 1, 1999 and April
1, 2000 respectively, will be filed by an amendment to this report on or before
October 16, 2000.
(c) Exhibits
Exhibit No. Description
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2.1 Quota Sale and Purchase Agreement, dated August 2, 2000, by and between
Dynamic I-T, Inc. and Mannai Corporation Limited
99.1 LM Historical Financial Statements*
99.2 Pro Forma Financial Statements*
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* To be filed by amendment.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this current report on Form 8-K to be signed on
its behalf by the undersigned hereunto duly authorized.
DYNAMIC I-T, INC.
By: Patrick D. Doyle
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Patrick D. Doyle
Director
Dated: August 17, 2000
