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): JULY 21, 1999
AURA SYSTEMS, INC.
(Exact Name of Registrant as Specified in its Charter)
DELAWARE 0-17249 95-4106894
(State or other Jurisdiction (Commission (I.R.S. Employer
of Incorporation or Organization) File Number) Identification No.)
2335 Alaska Avenue
El Segundo, California 90245
(Address of principal executive offices)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (310) 643-5300
FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT: N/A
Item 5. Other Events.
On July 21, 1999, Aura Systems, Inc. (the "Company") issued a press release
regarding certain material events. The following is the text of the press
release:
news release
NEWS
FOR IMMEDIATE RELEASE
AURA SYSTEMS REPORTS AGREEMENT-IN-PRINCIPLE REACHED REGARDING RESTRUCTURING
PLAN AND COMMENCEMENT OF AUDIT; COMMON STOCK DELISTED FROM NASDAQ; PLAN
ANNOUNCED TO RE-LIST COMMON STOCK
EL SEGUNDO, CALIFORNIA, July 21, 1999---AURA SYSTEMS, INC. announced today that
it has made significant progress towards implementing a restructuring plan of
its principal indebtedness. Specifically, the Company has reached an
agreement-in-principle with its two largest debtholders, representing more than
$35 million of straight debt and debt convertible into Common Stock. The
agreement-in-principle calls for approximately $41 million of indebtedness to be
converted into Common Stock representing 32.4% of Aura's Common Stock, after
giving effect to the completion of the restructuring plan and a private
placement of $10 million of Common Stock. Conversion of this debt to Common
Stock will also result in an increase of approximately $41 million of equity on
Aura's balance sheet. The agreement-in-principle is subject to the satisfaction
of a number of terms and conditions, including an infusion of new equity capital
by third parties through a private placement of up to $10 million of Common
Stock, and satisfactory arrangements with other Aura creditors providing for
payment in full over a period of time.
The Company also announced that it received notification from The Nasdaq Stock
Market that its Common Stock was delisted from trading effective as of July 20,
1999. The action by Nasdaq was taken as a result of the Company's inability to
furnish audited financial statements to the SEC, failure to maintain a $1.00
minimum bid price and the delinquency of certain listing fees. The Company
recently paid its auditors, allowing the audit work to proceed.
The Company intends to re-apply for listing on the Nasdaq National Market
following the implementation of the restructuring plan, completion of its annual
audit and consummation of a proposed 1:20 reverse stock split, at which time the
Company believes it will meet all applicable Nasdaq National Market listing
requirements.
# # #
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed by the undersigned hereunto
duly authorized.
AURA SYSTEMS, INC.
(Registrant)
DATED: July 21, 1999 By: /s/ Steven C. Veen
------------------------
Steven C. Veen
Chief Financial Officer
