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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
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OCTOBER 13, 1999
(Date of earliest event reported)
STARNET FINANCIAL, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 33-13627 75-2168244
(State or other jurisdiction of (Commission file number) (I.R.S. employer
incorporation or organization) identification no.)
17000 PRESTON ROAD, SUITE 350, DALLAS, TEXAS 75248
(Address of principal executive offices)
972-239-2939
(Registrant's telephone number,
including area code)
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ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS.
On October 13, 1999, StarNet Financial, Inc., a Delaware corporation (the
"Company") completed the acquisition of Residential Lenders, Inc., a Florida
corporation ("RLI"). RLI is engaged in the business of residential mortgage
lending. Pursuant to a Stock Purchase Agreement, effective as of October 1,
1999, the Company acquired all of the outstanding capital stock of RLI. The
Company issued 250,000 shares of the Company's common stock, $.01 par value
("Common Stock"), paid an initial cash payment of $175,000, less certain
disbursements, and has paid or will pay an additional $50,000 on each of
November 10, 1999, December 10, 1999, January 10, 2000 and February 10, 2000, to
the shareholders of RLI. The purchase price for the acquisition was determined
by an arm's length negotiation among the parties. The transaction was accounted
for as a purchase.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
STARNET FINANCIAL, INC.
Dated: January 4, 1999 By: /s/ Kenneth F. Urbanus
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Kenneth F. Urbanus, President
