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As filed with the Securities and Exchange Commission on: September 30, 1996
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
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Date of Report (Date of earliest event reported): September 30, 1996
THE GNI GROUP, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 0-10735 76-0232338
(State or other juris- (Commission (I.R.S. Employer
diction of incorporation) File Number) Identification No.)
2525 BATTLEGROUND ROAD, DEER PARK, TEXAS 77536 (713) 930-0350
(Address of Principal Executive Offices) (Zip Code) (Registrant's telephone
number, including area
code)
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FORM 8-K
CURRENT REPORT
ITEM 5. OTHER EVENTS.
On September 30, 1996, The GNI Group, Inc., a Delaware corporation
(the "Registrant"), participated in a consolidation with EMPAK Inc. ("EMPAK"),
whereby EMPAK exited the third-party commercial waste management business and
agreed to assist in the transfer of EMPAK's third-party commercial waste
management customers to the Registrant. EMPAK will continue to use its
facility in Deer Park, Texas for the disposal of its own waste and the waste of
its affiliates and customers of its retained businesses. The Registrant paid
EMPAK the sum of $12,000,000 at closing. Additionally, the Registrant has
agreed to pay EMPAK $1,200,000 per year for five years in exchange for the use
of EMPAK's deepwell for five years in case of a force majeure at the
Registrant's facilities, thus allowing the Registrant to mitigate any business
disruption that may occur should one of its deepwells have operational or
mechanical difficulties. The Registrant expects the consolidation to produce
annual revenues of approximately $6.5 million and earnings per share in excess
of $.20.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(a) Financial Statements.
Not Applicable.
(b) Pro forma financial information.
Not Applicable.
(c) Exhibits.
Not Applicable.
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.
THE GNI GROUP, INC.
DATE: September 30, 1996 /s/ Carl V Rush, Jr.
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Carl V Rush, Jr.
President and CEO
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