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UNITED STATES
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): December 12, 2000
YARC SYSTEMS CORPORATION, INC.
_____________________________________________________________________________
(Exact name of Registrant as specified in its charter)
CALIFORNIA 000-29969 77-0185650
_____________________________ ___________ ___________________
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
900 CALLE PLANO, UNITS J, K, CAMARILLO, CA 93012
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (805)482-1879
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Item 5. Other Events
RISK FACTORS
Prior litigation with a certain Mr Flemming Stanley, of 173 Garden Wood Road,
East Grinstead, United Kingdom, was described in Note 14 to the Financial
Statements of YARC's 10-KSB-40/A filed on May 15, 2000. This litigation was
concluded in March, 1999, with a Judgment by the Danish Maritime and
Commercial Court in YARC's favor.
On December 13, 2000 YARC Systems Corporation received an e-mail from
Mr Flemming Stanley, expressing pleasure at YARC's announced suspension of
operations
"I must admit that it has been a very enjoyable day.
I have celebrated the day by drinking an exquisite
bottle of red wine. Such an event is indeed worth a
major celebration."
This e-mail also threatens the continuance of actions designed to damage
YARC and its CEO, Dr Trevor Marshall.
The full e-mail is attached as Exhibit 99-1.
On April 13, 2000 Mr Stanley wrote to YARC claiming that he had
spoken with Mr Daniel Baker, CEO of Printware Inc, a potential merger
partner of YARC. Subsequently the Company has determined that Mr Stanley
has also spoken with the President of Autologic Information International
Inc., another potential merger partner.
In the April 13th e-mail, Mr Stanley also expresses pleasure that YARC's
stock price had fallen. The full e-mail is attached as Exhibit 99-2
To this date, attempts by Management of YARC to stop Mr Stanley sending
threatening and/or libellous e-mails and letters to YARC's customers,
business partners, and investors, have been unsuccessful.
Exhibit 99-3 is an e-mail dated September 5, 1998 in which Mr Stanley asks
for $5.2 million in stock and cash, and to be released from Court Judgments
that YARC has won against him, in order that he
"will have no interest in hurting YARC Systems Corp. in the future."
Management did not acceed to that demand.
Management is continuing to seek a solution to this problem, but no
assurances can be given that Mr Stanley's actions will not continue to
adversely affect YARC's operations and/or business prospects.
Exhibits
99-1 E-mail from Mr Flemming Stanley received December 13, 2000
99-2 E-mail from Mr Flemming Stanley received April 13, 2000
99-3 E-mail from Mr Flemming Stanley received September 5, 1998
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, thereunto duly authorized.
YARC SYSTEMS CORPORATION, INC.
Registrant
Dated: December 19, 2000 By /s/ Trevor G Marshall
_______________________
Trevor G Marshall
Chairman and Chief Executive Officer
(Principal Executive Officer)
