SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
December 17,1996
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Date of report (Date of earliest event reported)
National Enterprises, Inc.
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(Exact name of small business issuer as specified in its charter)
Indiana 1-4799 35-0540454
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(State or other jurisdiction) (Commission file number) (IRS Employer
of incorporation) Identification No.)
90 Adelaide Street West, Suite 300, Toronto, Ontario, Canada M5H 3V9
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(Address of principal executive offices) (Zip Code)
214-363-8300
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(Registrant's telephone number, including area code)
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Item 7. Financial Statements and Exhibits
(a) Financial statements of businesses acquired.
The following financial statements of Argosy Mining G.m.b.H., the business
acquired as reported in ITEM 2 - ACQUISITION AND DISPOSITION OF ASSETS,
ACQUISITION OF ASSETS, have been filed:
1. Argosy Mining G.m.b.H., audited financial statements for the year ended
December 31, 1995. Filed as Exhibit V to original Form 8-K filed March
27, 1997 and incorporated herein by reference.
2. Argosy Mining G.m.b.H., un-audited financial statements for the nine
months ended September 30, 1996. Filed as Exhibit VI to original Form
8-K filed March 27, 1997 and incorporated herein by reference.
(b) Pro forma financial information.
The following pro forma financial information is filed herewith:
1. National Enterprises, Inc., un-audited pro forma financial statements
for the year ended December 31, 1995 and the nine months ended
September 30, 1996. Filed herewith as Exhibit VII.
(c) Exhibits.
The following exhibits have been filed:
Exhibit Item 601
No. Category Exhibit
- ------- -------- -------
I 99 Share Purchase Agreement, dated November 28, 1996, among
National Enterprises Inc. and Danca Investments Inc.,
pertaining to the sale of all of the issued and outstanding
shares of NRC, Inc. Filed as Exhibit I to original Form 8-K
filed March 27, 1997 and incorporated herein by reference.
II 99 Share Purchase Agreement, dated November 28, 1996, among
National Enterprises Inc. and Danca Investments Inc.,
pertaining to the sale of all of the issued and outstanding
shares of National Building Systems, Inc. Filed as Exhibit
II to original Form 8-K filed March 27, 1997 and
incorporated herein by reference.
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III 99 Share Purchase Agreement, dated November 28, 1996, among
National Enterprises Inc. and Danca Investments Inc.
pertaining, to the sale of all of the issued and outstanding
shares of Arendswood Homes, Inc. Filed as Exhibit III to
Form 8-K filed March 27, 1997 and incorporated herein by
reference.
IV 99 Agreement, dated November 30, 1997, among National
Enterprises, Inc., Argosy Mining Corp. and Mercury
Immobilien und Verwaltungs AG, pertaining to the acquisition
of Argosy Mining G.m.B.H. Filed as Exhibit IV to original
Form 8-K filed March 27, 1997 and incorporated herein by
reference.
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.
NATIONAL ENTERPRISES, INC.
Date: July 23, 1997 By: /s/ C. W. Leigh Cassidy
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C. W. Leigh Cassidy, Vice President, Chief
Financial Officer (Principal Financial and
Accounting Officer) and Secretary
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<CAPTION>
NATIONAL ENTERPRISES INC.
Pro Forma Consolidated Balance Sheet
As at September 30,1996
(unaudited)
National Argosy
Enterprises Mining Pro Forma
Inc. GmbH Adjustments Consolidation
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<S> <C> <C> <C> <C>
Assets
Cash ............................. $ 25 $ 2,000 $ 100,000 $ 102,025
Accounts receivable .............. 0 4,000 0 4,000
Inventory - land ................. 109,784 0 (2) (109,784) 0
Other assets ..................... 916 0 (2) (916) 0
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110,725 6,000 (10,700) 106,025
Investment - Argosy Mining GmbH .... 0 0 (3)(4) 0 0
Machinery and equipment ............ 0 4,000 0 4,000
Mineral properties and deferred
development expenditures ......... 0 89,000 (4) 105,193 194,193
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$ 110,725 $ 99,000 $ 94,493 $ 304,218
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Liabilities and Shareholders' Equity
Current liabilities
Accounts payable ................. $ 239,425 $ 4,000 (2)(3) $ 60,228 $ 303,653
Loans payable - related parties .. 193,168 0 (2) (193,168) 0
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432,593 4,000 (132,940) 303,653
Shareholders' equity
Preferred stock, 10,000,000 shares
authorized, none issued .......... 0 0 0 0
Common stock, no par value,
1,000,000,000 shares authorized,
69,816,698 shares issued and
outstanding ...................... 47,183,763 221,000 (1)(4)(6) (75,000) 47,329,763
Accumulated deficit .............. (47,505,631) (126,000)(2)(4) 348,433 (47,283,198)
Common stock transferred by
affiliate ........................ 0 0 (6) (46,000) (46,000)
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(321,868) 95,000 227,433 565
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$ 110,725 $ 99,000 $ 94,493 $ 304,218
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<CAPTION>
NATIONAL ENTERPRISES INC.
Pro Forma Consolidated Statement of Operations
and Deficit For the nine months ending
September 30, 1996
(unaudited)
National Argosy
Enterprises Mining Pro Forma
Inc. GmbH Adjustments Consolidation
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<S> <C> <C> <C> <C>
Revenue
Land and shelter ........................ $ 421,300 $ 0(5) $ (421,300) $ 0
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421,300 0 (421,300) 0
Cost of sales - land and shelter ........ 411,631 0(5) (411,631) 0
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Gross profit (loss) ..................... 9,669 0 (9,669) 0
Expenses
General and administrative .............. 34,874 49,000 0 83,874
Research and development ................ 0 4,000 0 4,000
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34,874 53,000 0 87,874
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Loss from continuing operations ......... (25,205) (53,000) (9,669) (87,874)
Discontinued operations:
Income from operations of subsidiaries... 0 0(5) 9,669 9,669
Gain on disposal of wholly owned
subsidiary .............................. 0 0(2) 222,433 222,433
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Net income (loss) before income taxes ... (25,205) (53,000) 222,433 144,228
Income taxes ............................ 0 2,000 0 2,000
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Net income (loss) ....................... (25,205) (55,000) 222,433 142,228
Deficit, beginning of period ............ (47,480,426) (71,000)(4) 126,000 (47,425,426)
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Deficit, end of period .................. $(47,505,631) $ (126,000) $ 348,433 $(47,283,198)
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Net earnings (loss) per share ........... $ 0 400,000 $ 0
========== =========== ===========
Weighted average number of shares of
common stock outstanding ................ 69,416,698 69,816,698
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<CAPTION>
NATIONAL ENTERPRISES INC.
Pro Forma Consolidated Statement of Operations and Deficit
For the year ended December 31, 1995
(unaudited)
National
Enterprises Argosy Mining Pro Forma
Inc. GmbH Adjustments Consolidation
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<S> <C> <C> <C> <C>
Revenue
Operating revenue .................... $ 0 226,000 $ 0 $ 226,000
Interest income ...................... 2,445 2,000 0 4,445
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2,445 228,000 0 230,445
Expenses
General and administrative ........... 145,032 87,000 0 232,032
Research and development ............. 0 211,000 0 211,000
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145,032 298,000 0 443,032
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Loss from continuing operations ...... (142,587) (70,000) 0 (212,587)
Income from operations of subsidiaries 371,484 0 0 371,484
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Net income (loss) before income taxes 228,897 (70,000) 0 158,897
Income taxes ......................... 0 1,000 0 1,000
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Net income (loss) .................... 228,897 (71,000) 0 157,897
Deficit, beginning of period ......... (47,709,323) 0 0 (47,709,323)
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Deficit, end of period ............... $ (47,480,426)$ (71,000) $ 0 $(47,551,426)
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Net earnings (loss) per share ........ $ 0 400,000 $ 0
============ ========== ============
Weighted average number of shares of
common stock outstanding ............. 46,007,433 46,407,433
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NATIONAL ENTERPRISES INC.
Notes to Pro Forma Consolidated Financial Statements
As at December 31, 1995 and September 30, 1996
1. Basis of Presentation:
On December 17, 1996, National Enterprises Inc. (the "Company") announced an
agreement amongst the Company, its controlling shareholder Arendscor (Canada)
Inc. ("Arendscor") and Mercury Immobillien und Verwaltungs AG ("Mercury")
whereby Mercury acquired substantially all of Arendscor's interest in the
Company, the Company transferred the ownership of its wholly owned subsidiaries
to an affiliate of Arendscor as payment in full for all debts outstanding to
Arendscor and its affiliates, and the Company acquired all the issued and
outstanding stock of Argosy Mining G.b.m.H. ("Argosy") and its related mineral
rights to explore for gold reserves in nine prospects located in Austria.
The accompanying unaudited pro forma interim consolidated balance sheet and
statements of operation and deficit have been prepared from the audited
financial statements of the Company and Argosy as at December 31, 1995 and the
unaudited financial statements as at September 30, 1996 of the Company and
Argosy.
The pro forma balance sheet and statements of operations and deficit may not be
indicative either of results that actually would have occurred if the events
reflected herein had been in effect on the dates indicated or of the results
which may be obtained in the future.
The pro forma consolidated statements assume that the above noted purchase
transaction occurred at the beginning of January, 1995.
Management recommends that this financial information should be read in
conjunction with the financial statements of the Company and Argosy included
with the Company's periodic reports filed with the Securities and Exchange
Commission.
2. Pro Forma Transactions and Assumptions:
These pro forma statements are presented giving effect to the following
transactions:
(a) The Company will acquire all the issued and outstanding stock of Argosy for
$200,193. In addition, the consideration included Mercury's transfer to
Argosy, and an unrelated party, 2,300,000 shares of common stock in
National, valued at $0.02 per share representing an approximation of the
value of the shares.
(b) The Company will issue 400,000 common shares at $0.25 per share for
proceeds of $100,000.
(c) The ownership of the wholly owned subsidiaries of the Company will be
transferred to an affiliate of Arendscor as payment in full for all debts
outstanding to Arendscor and its affiliates.
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NATIONAL ENTERPRISES INC.
Adjustments to Pro Forma Financial Statements
For the period ending September 30, 1996
<S> <C> <C>
1 Cash 100,000
Capital stock 100,000
Subscription for $100,000 of common shares
2 Accounts payable 42,636
Accrued property taxes 63,927
Loans payable - related parties 193,168
Accrued liabilities 33,402
Inventory - land 109,784
Other assets 916
Gain on disposal of fully owned subsidiaries 222,433
Disposition of subsidiaries in exchange for elimination
of loans payable - related parties
3 Investment in Argosy Mining GmbH 200,193
Accounts payable 200,193
Investment in Argosy Mining GmbH
4 Mineral properties and deferred development 105,193
expenditures
Capital stock - Argosy 221,000
Deficit - Argosy 126,000
Investment in Argosy Mining GmbH 200,193
Consolidation of Argosy Mining GmbH with National
Enterprises Inc.
5 Revenue - land and shelter 421,300
Cost of sales - land and shelter 411,631
Income from operations of subsidiaries 9,669
Reclassify discontinued operations - income statement
6 Common stock transferred by affiliate 46,000
Capital stock 46,000
Common stock transferred by affiliate
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EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit Item 601
No. Category Exhibit Page No.
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<S> <C> <C> <C>
I 99 Share Purchase Agreement, dated November 28, 1996, among N/A
National Enterprises Inc. and Danca Investments Inc.,
pertaining to the sale of all of the issued and outstanding
shares of NRC, Inc. Filed as Exhibit I to original Form 8-K
filed March 27, 1997 and incorporated herein by reference.
II 99 Share Purchase Agreement, dated November 28, 1996, among N/A
National Enterprises Inc. and Danca Investments Inc.,
pertaining to the sale of all of the issued and outstanding
shares of National Building Systems, Inc. Filed as Exhibit
II to original Form 8-K filed March 27, 1997 and
incorporated herein by reference.
III 99 Share Purchase Agreement, dated November 28, 1996, among N/A
National Enterprises Inc. and Danca Investments Inc.
pertaining, to the sale of all of the issued and outstanding
shares of Arendswood Homes, Inc. Filed as Exhibit III to
Form 8-K filed March 27, 1997 and incorporated herein by
reference.
IV 99 Agreement, dated November 30, 1997, among National N/A
Enterprises, Inc., Argosy Mining Corp. and Mercury
Immobilien und Verwaltungs AG, pertaining to the acquisition
of Argosy Mining G.m.B.H. Filed as Exhibit IV to original
Form 8-K filed March 27, 1997 and incorporated herein by
reference.
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