FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report: June 18, 1998
PIONEER RAILCORP
(Exact name of registrant as specified in its charter)
IOWA 33-6658-C 37-116131
State of Incorporation) (Commission File No.) (IRS Employer ID No.)
1318 S. JOHANSON ROAD, PEORIA, ILLINOIS 61607
(Address of principal executive offices) (zip code)
Registrant's telephone number, including area code: (309) 697-1400
Item 5. Other Events.
On June 15, 1998, the Company, acting upon a resolution approved by its
Board of Directors, entered into agreements with employees to repurchase all
of the outstanding stock options with exercise prices equal to or less
than $1.65. In exchange for forfeiting the options, employees received
a one-time adjustment to their base salary equal to $.15 per option share.
In total, 580,000 options were forfeited as a result of these agreements.
A total of 20,000 options remain exercisable at $1.50 and are held by an
outside director.
The primary reason this action was taken by the Board of Directors was to
lessen the potential dilution to all common share holders from the exercise
of the options based on the trading volume of the Company stock.
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 thereunto duly authorized.
PIONEER RAILCORP
(Registrant)
06/18/98 /s/ Guy L. Brenkman
DATE GUY L. BRENKMAN
PRESIDENT & CEO
06/18/98 /s/J. Michael Carr
DATE J. MICHAEL CARR
TREASURER & CHIEF
FINANCIAL OFFICER
