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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 (Date of earliest event reported) June 17, 1998
JAYARK CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 0-3255 13-1864519
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(State of other (Commission (IRS Employer
jurisdiction of incorporation) File Number) Identification No)
Post Office Box 741528
Houston, Texas 77274
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including are code: 713-783-9184
N/A
(Former name or former address, if changed since last report.)
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Item 5. OTHER EVENTS
On June 17, 1998 Jayark Corporation, through a newly formed, wholly
owned subsidiary, MED Advisors Corp. ("Med"), entered into a Purchase and Sale
Agreement with Vivax Medical Corporation ("Vivax"), a company that manufactures,
sells and rents durable medical equipment to hospitals, nursing homes and
individuals. Under the terms of the agreement, Med purchased certain medical
equipment form Vivax for cash of $579,700 and a $144,925 unsecured promissory
note due in five years. Med then entered into a Consignment Agreement with
Vivax whereby this medical equipment was consigned to Vivax to rent through its
distribution network. In consideration of Vivax renting and maintaining the Med
equipment, Vivax is entitled to a range of forty-eight to sixty-seven percent of
the rental proceeds, based upon the equipment rented. Vivax has an option to
purchase the medical equipment from Med after the twenty-fourth, thirty-six and
forty-eighth month of the consignment period. Med, under the Purchase and Sale
Agreement has an option, through October 31, 1999 to purchase an additional
$2,475,000 of medical equipment from Vivax. Upon the expiration of the
consignment period, which is five years from the purchase of the equipment, Med
has the option to sell the equipment back to Vivax.
Med, financed this purchase from a bank loan, which is personally
guaranteed by one of the principal shareholders of Jayark, and presently
available working capital. Med is currently negotiating a $1,000,000 revolving
line of credit to replace the interim bank loan.
If the equipment is successfully rented, the rental income and cash
flow could have a material affect on the operating results of Jayark
Corporation. There can be no assurances that the Company will be successful in
renting the medical equipment.
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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.
Jayark Corporation
(Registrant)
Date: June 24, 1998 ----------------------------------
David Koffman, President
