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S E C U R I T I E S A N D E X C H A N G E C O M M I S S I O N
WASHINGTON, D.C. 20549
FORM 8 - K
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
COMMISSION FILE NO. 0-18866 DATE OF REPORT: JANUARY 2, 1998
(Date of earliest reported event)
FIRST NATIONAL ENTERTAINMENT CORP.
(EXACT NAME OF SMALL BUSINESS ISSUER AS SPECIFIED IN ITS CHARTER)
COLORADO 93-1004651
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(STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER
INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.)
600 ENTERPRISE DRIVE, SUITE 109, OAK BROOK, ILLINOIS 60523
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(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
(630) 573-8209
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(REGISTRANT'S TELEPHONE NUMBER)
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Item 2. Acquisition or Disposition of Assets
On January 2, 1998 the board of directors of First National Entertainment Corp.
(FNAT) approved the agreement of December, 1997 which transferred its First
National Environmental Technologies, Inc. (FNET) subsidiary to a group of
European investors headed by Mr. Jurg Mullhaupt.
FNET is using a business plan which furnishes trenchless pipe repair equipment
to franchisees for a monthly fee. Additional revenue is generated through an
exclusive arrangement providing liner material used in the repairs and
marketing services. Initial sales are targeted for Northern Europe and the
USA.
Due to the significant amount of cash required to equip the franchisees with
state of the art equipment it was determined the funding necessary for this
start up operation was beyond FNAT's current strategic plan. The Company will
take a one time charge of approximately $44,000 of organization costs.
The Separation agreement encompasses the rescission of the issuance of all FNAT
common stock, warrants, and commission shares, negates the terms and conditions
of the original contract while granting the new owners use of the corporate
name. For monies extended, FNAT received a promissory note in the amount of
$290,000 at 15% interest. Twelve equal payments begin 5/1/98. The note is
fully secured by the common stock of FNET and its Swiss and German
subsidiaries.
First National Entertainment Corp. will continue to identify and recruit
appropriate numbers of companies for acquisition which meet our stratagem.
Item 5 - Other Events
Upon the advice of its recently hired entertainment industry consultant, the
Board has approved a charge of $500,000 to reflect a final writedown of the
capitalized costs associated with the movie Happily Ever After.
Item 6 - Resignation of Registrant's Directors
Jurg Mullhaupt, resigned as a member of the board of directors of First
National Entertainment Corp. (FNAT), on December 17, 1997 accepted by the board
on January 2, 1998.
Attached is exhibit 1, resignation letter of Jurg Mullhaupt, fully executed on
January 2, 1998.
Item 8 - Change in Fiscal Year
The Board has approved a Resolution changing the fiscal year end of First
National Entertainment Corp. to December 31st from June 30th. This shift will
more accurately reflect the Company's current business cycle.
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EXHIBITS
1. Resignation letter of Jurg Mullhaupt, dated December 17, 1997.
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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 hereunto duly authorized.
First National Entertainment Corp.
Registrant
January 2, 1998 /s/ Charles E. Nootens
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Date Signature
Charles E. Nootens
Chairman
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December 17, 1997
Board of Directors
First National Entertainment Corp.
600 Enterprise Drive
Suite 109
Oak Brook, Illinois 60523
Dear Board of Directors:
Please consider this letter as my tender of resignation, Board Member of First
National Entertainment Corp., effective today, December 17, 1997.
Sincerely,
Jurg Mullhaupt
Board Member
First National Entertainment Corp.
