SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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): May 8, 1997
WASTEMASTERS, INC.
(Exact name of registrant as specified in its charter)
Maryland 0-12914 52-1507818
(State or other (Commission (IRS Employer
jurisdiction of) File Number) Identification No.)
11940 Coman Road, Waldron, Michigan 49288
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (800)408-7274
<PAGE>
Item 1. Changes in control of Registrant
On May 8, 1997 the Company released the following press release that
states:
WASTEMASTERS, INC. ARRANGES NEW FINANCING AND TERMINATES
AGREEMENT WITH STRATEGICA CAPITAL CORP.
BALTIMORE, MD-May 8th, 1997 - WasteMasters, Inc. (NASDAQ SmallCap: WAST) has
received $300,000 in capital from the proceeds of a private placement of the
Company's common stock. The funds will be used to meet the Company's immediate
working capital requirements. The Company simultaneously has retained Star
Funding, Inc. of Lexington, MA to obtain $6,000,000 of long term debt financing.
The proceeds from the debt financing will be used to develop the Company's
existing landfills, acquire other waste processing sites and for working
capital. The funding and closing of the loan will be subject to the Lender's
satisfactory due diligence.
In a separate transaction, the Company announced it has terminated the
Memorandum of Understanding with Strategica Capital Corporation ("Strategica")
of Miami, Florida which was to provide a $4,000,000 line of credit to the
Company. The closing was subject to Strategica completing its due diligence and
restructuring the existing indebtedness of the Company to creditors other than
Strategica, on terms satisfactory to the Company and Strategica.
WasteMasters, Inc. Chairman, A. Leon Blaser, Ph.D. stated "The financing
contemplated with Strategica Capital was to stabilize the Company and build long
term value for our stockholders. It is unfortunate that the Company was unable
to structure the financing in such a way that it would be in the best long term
interests of the Company's shareholders."
For more information contact:
Richard Masters
President & CEO
WasteMasters, Inc.
11940 Coman Road
Waldron, Michigan 49288
(800)408-7274
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 hereon to duly authorized.
WASTEMASTERS, INC.
Date: May 14, 1997 By: /s/ Richard Masters
_____________________________
Richard Masters
President and Chief Executive Officer
