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) February 22, 1999
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News Communications, Inc.
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(Exact name of Registrant as Specified in its Charter)
Nevada 0-18299 13-3346991
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(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
174-15 Horace Harding Expwy., Fresh Meadows, New York 11365
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (718) 357-3380
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N/A
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(Former Name or Former Address, if Changed Since Last Report)
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Item 5. Other Events.
On February 22, 1999, News Communications, Inc. consummated a rights
offering of 3,833,333 shares of its common stock at $1.50 per share. The
offering resulted in gross proceeds to News Communications of $5,750,000. See
"Item 7 - Financial Statements, Pro Forma Financial Statements and Exhibits" for
a pro forma balance sheet (unaudited) of News Communications and it subsidiaries
as of January 31, 1999, giving effect to the rights offering.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
The net tangible assets of News Communications following the rights
offering, at January 31, 1999 is $3,292,395. See attached balance sheet.
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NEWS COMMUNICATIONS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
as of January 31, 1999
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<CAPTION>
<S> <C> <C>
Actual Proforma
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ASSETS (Unaudited)
CURRENT ASSETS: --------------------------------------
Cash and cash equivalents $ 308,072 $ 5,658,072
Accounts receivable, less allowances for
doubtful accounts of $1,152,714 3,263,080 3,263,080
Due from related parties 408,604 408,604
Other 64,630 64,630
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Total current assets 4,044,386 9,394,386
INVESTMENT IN UNCONSOLIDATED ENTITIES 178,535 178,535
PROPERTY AND EQUIPMENT (at Cost), Net 336,661 336,661
OTHER ASSETS:
Trademarks, Net 1,764,771 1,764,771
Goodwill, Net 1,370,081 1,370,081
Other, Net 63,120 63,120
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TOTAL ASSETS $ 7,757,554 $13,107,554
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 1,575,798 $ 1,575,798
Accrued expenses 2,046,130 2,046,130
Due to related party 410,000 410,000
Related party short-term debt 3,700,000 3,700,000
Other current liabilities 253,076 253,076
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Total current liabilities 7,985,004 7,985,004
MINORITY INTEREST 460,074 460,074
COMMITMENTS AND CONTNGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock, $1.00 Par Value, 500,000
shares authorized 220,340 220,340
Common Stock, $.01 Par Value 27,920 66,253
PAID-IN-CAPITAL, PREFERRED STOCK 2,257,025 2,257,025
PAID-IN-CAPITAL, COMMON STOCK 14,499,107 19,810,774
RETAINED EARNINGS (Accumulated deficit) (17,283,187) (16,807,732)
LESS: TREASURY STOCK (at Cost) (408,729) (408,729)
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Total Stockholders' Equity (687,524) 4,662,476
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 7,757,554 $ 13,107,554
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Signature
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.
NEWS COMMUNICATIONS, INC.
Date: February 22, 1999 By: /s/ Michael Schenkler
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Michael Schenkler
President
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