<PAGE> 1 FORM 4
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
[ ] Check if no longer subject to Section 16.
Form 4 or Form 5 obligations may continue. See Instructions 1(b).
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934,
Section 17(a) of the Public Utility Holding Company Act of 1935 or Section
30(f) of the Investment Company Act of 1940
1. Name and Address of Reporting Person*
Gray David Lee
(Last) (First) (Middle)
c/o Versus Technology, Inc.
2600 Miller Creek Road
(Street)
Traverse City MI 49684
(City) (State) (Zip)
2. Issuer Name and Ticker or Trading Symbol
Versus Technology, Inc. VSTI
3. IRS or Social Security Number of Reporting Person (Voluntary)
Not furnished
4. Statement for Month/Year
August 1999
5. If Amendment, Date of Original (Month/Year)
N/A
6. Relationship of Reporting Person to Issuer
(Check all applicable)
[X] Director [ ] 10% Owner
[ ] Officer (give title below) [ ] Other (Specify below)
____________________________________________________
7. Individual or Joint/Group Filing
(Check applicable line)
[X] Form filed by One Reporting Person
[ ] Form filed by More than One Reporting Person
* If the Form is filed by more than one Reporting Person, see instruction
4(b)(v)
<PAGE> 2
<TABLE>
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
5. Amount
3. Trans- 4. Securities of Securi-
action Acquired (A) or ties Bene- 6. Owner-
Code Disposed of (D) ficially ship Form: 7. Nature of
(Instr. 8) (Instr. 3, 4 & 5) Owned at Direct(D) Indirect
2. Trans- _________ ___________________ End of or Indirect Beneficial
1. Title of Transaction (A) or Month (I) Ownership
Security Date Code V Amount (D) Price (Inst. 3&4) (Instr. 4) (Instr. 4)
(Instr. 3) (Mo./Day/Yr.)
_________________ ___________ ____ ___ ______ _____ _____ ________ ___________ _________
<S> <S> <C> <S> <C> <C> <S>
Common Stock 50,000 D
Reminder: Report on a separate line for each class of securities beneficially
owned directly or indirectly.
</TABLE>
<PAGE> 3
<TABLE>
Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
9.
Number
5. Number 7. Title of
of Deriv- 6. Date and Amount Deriv- 10. Own-
ative Sec- Exercisable of Under- ative ership
urities & Expiration lying Sec- Secur- Form of 11.
Acquired Date urities (In- ities Deriva- Nature
4. Trans- (A) or (Mo./Day/Yr.)str. 3 & 4) 8. Benefi- tive Sec- of In-
2. Conver- action Disposed _____________ _____________ Price cially urity: direct
sion or 3. Trans- Code of (D) Amount of Owned Direct(D) Bene-
1. Title of Exercise action (Instr. 8) (Instr. 3, or Deriv- at End or In- ficial
Derivative Price of Date) 4 and 5) Date Expir- Number ative of direct(I) Owner-
Security Derivative (Month/ ____________________ Exer- ation of Security Month (Instr. ) ship
(Instr. 3) Security Day/Yr.) Code V (A) (D) cisable Date Title Shares (Instr. (Instr. 4) (Instr.
5) 4) 4)
____________ _________ ________ ____ _ ______ ____ _______ _____ _____ ______ ________ _______ _________ _______
<S> <C> <S> <C> <S> <S> <S> <C> <C> <C> <S>
Options $0.515 4/24/99 4/24/03 Common 73,000 73,000 D(1)
Options $0.165 4/23/00 4/23/04 Common 73,000 73,000 D(2)
Convertible
Debentures $0.25 8/18/99 P 2,400,000(A) 8/18/99 4/30/04 Common 2,600,000 600,000 6,000,000 I(3)
Explanation of Responses:
(1) Granted to the reporting person for services as a director for the
year beginning April 24, 1998; options vest 100% on April 24, 1999.
(2) Granted to the reporting person for services as a director for the year beginning
April 23, 1999; options vest 100% on April 23, 2000.
(3) An entity in which the reporting person has an interest purchased Prime Rate Secured Convertible Debentures due
April 30, 2004 in a private placement. The Debentures are convertible into shares of common stock at a variable
conversion rate; the initial conversion rate is $0.25 per share.
</TABLE>
DAVID LEE GRAY September 10, 1999
__________________________ _____________________
David Lee Gray
**Signature of Reporting Date
Person
**Intentional misstatements or omissions of facts constitute
Federal Criminal Violations. See 18 U.S.C. 1001 and
15 U.S.C. 78ff(a).
