<PAGE>
FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of April, 2000
Fantom Technologies Inc.
(Registrant's name)
1110 Hansler Road
Welland, Ontario, Canada L3B 5S1
(905) 734-7476
(Address of principal executive offices)
Indicate by check mark whether the registrant files
or will file annual reports under cover
Form 20-F or Form 40-F:
Form 20-F Form 40-F X
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Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
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Documents Included as Part of this Report
No. Document
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1. Press release dated April 24, 2000.
2. Press release dated April 24, 2000.
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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, thereunto duly authorized.
Date: May 16, 2000
FANTOM TECHNOLOGIES INC.
By: "Walter J. Palmer"
-----------------------------------------
Name: Walter J. Palmer
Title: Secretary
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NEWS RELEASE
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BREAKTHROUGH IN POWER-CONTROL TECHNOLOGY
Profound Implications for Batteries and Household Appliances
TORONTO, April 24, 2000 - Fantom Technologies Inc. (TSE: FTM; NASDAQ: FTMTF)
announced today that it has identified a revolutionary physical concept that can
extend the output of batteries by as much as 40% and allow batteries to be
recharged in minutes rather than hours. It can also cut the electricity use by
many appliances by as much as 50%.
This breakthrough is a result of collaborative research between Fantom and
Omachron Technologies, Inc. The technology transfers energy between devices in
the form of a specially-tuned electronic signal, called a "pulse train," that is
neither alternating nor direct current. The pulse train can be delivered by
means of a uniquely programmed circuit board. Several patent applications have
been filed covering the scientific principles of the technology. It is
applicable to, but not limited to use in:
. Discharging batteries by optimizing the conversion of chemical to
electrical energy, thereby increasing their capacity.
. Charging batteries by minimizing the heat produced and maximizing
their total capacity, while minimizing the total energy used to charge
the batteries.
. Accurately determining the remaining capacity of batteries, something
that is problematic with many of the most modern batteries.
. Improving the overall electromechanical efficiency of a system in
which electric motors drive fluids or mechanical systems, such as in
refrigerators, freezers, air conditioners and vacuum cleaners.
"We anticipate that this technology will allow many cord-free products to
finally deliver on the promise of performance equivalent to traditional
plug-ins," commented Allan Millman, Fantom Technologies' President & CEO. "It's
a leap forward we will first apply to a new line of floor-care products we plan
to launch in late fall 2000."
<PAGE>
Fantom has acquired exclusive rights to the power-control technology for a wide
range of consumer products, and plans to offer licenses to allow the technology
to be used by other companies.
About Fantom Technologies
Fantom Technologies Inc. of Ontario, Canada is a growth-oriented,
household-appliance company, seeking the best ideas in technology that will make
daily living better for consumers. Over the past five years, Fantom has changed
the face of the vacuum-cleaner industry in North America with its line of
dual-cyclonic vacuums. The Company is developing several new products based on
proprietary technology and has aggressive plans to expand the markets and
geographic territories in which it competes. Since May 1998, sixty-nine utility
patent applications have been filed for technologies the Company is either
acquiring or exclusively licensing through its association with Omachron
Technologies, Inc.
Microbiological Water Purifier to be Available Soon
There's good news for consumers concerned about the quality of their drinking
water. The first product resulting from the collaborative R & D efforts between
Fantom and Omachron - the CALYPSO(TM) Microbiological Water Purifier - is
on-track for introduction this summer. This innovative, counter-top appliance
utilizes activated oxygen, known as ozone, to kill micro-organisms. This same
process is used in more than 3,000 state-of-the-art municipal water-treatment
systems around the world. The CALYPSO(TM) product is receiving accolades from
both retailers and industry professionals.
2
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For more information about Fantom Technologies, visit the Company's web site at
www.fantom.com.
The foregoing information includes certain statements relating to the Company
which are forward-looking statements under Section 21E of the United States
Securities Exchange Act of 1934. The words "anticipate", "plan" and similar
expressions, as they relate to the Company or its management, are intended to
identify forward-looking statements. Such statements are based on assumptions
made by, and information available to, the Company. However, there are important
factors that could cause actual results to differ materially from those in such
forward-looking statements including, among others, the contingencies arising
from the uncertainties which are inherent in the development of new technology
and the unanticipated costs and time delays which often arise in the process of
developing new products based on innovative technology. The Company does not
intend, and assumes no obligation, to update the forward-looking statements to
reflect actual results, changes in assumptions or changes in other factors
affecting such statements.
-30-
For more information, please contact:
Allan Millman
President & CEO
416-622-9740 Ext. 232
Steve Doorey
Vice President, CFO
905-734-7476 Ext. 281
Jacqui d'Eon
JAd'E Communications
905-521-8891
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NEWS RELEASE
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Third Quarter Results Reported By
Fantom Technologies Inc.
Also Declare Dividend
TORONTO, April 24, 2000 - Third quarter results were announced today by Fantom
Technologies Inc. (TSE: FTM; NASDAQ: FTMTF). For the three months ended March
31, 2000 net income was $1.6 million or $0.18 per share (based on 9,099,181
shares outstanding) compared with $4.0 million or $0.44 per share (based on
9,008,802 shares outstanding) for the year-earlier period. Sales were $57.4
million compared with $65.6 million for the year-earlier period.
For the nine months ended March 31, 2000 net income was $8.5 million or $0.94
per share (based on 9,080,971 shares outstanding) compared with $10.9 million or
$1.21 per share (based on 8,997,360 shares outstanding) for the year-earlier
period. Sales were $175.3 million compared with $180.7 million for the
year-earlier period.
Commenting on the Company's results, Fantom Technologies' President & CEO Allan
Millman said, "The third quarter was a challenging period for the Company due to
intensified competitive activity within the bagless segment of the
vacuum-cleaner market. Several competitive bagless systems are now available and
more introductions are expected in upcoming months. Despite the increasing
competition, we were successful in expanding distribution during the quarter and
our products are now featured across the United States at both Wal-Mart and
Sam's Club.
"This is a period of transition for the Company. As our existing product line
matures, we are preparing to introduce exciting new appliances that incorporate
leading-edge, proprietary technology. It all begins this summer with the planned
launch of our first water-treatment entry - the CALYPSO(TM) Microbiological
Water Purifier. Both retailers and industry professionals are applauding this
innovative, counter-top appliance. We intend to follow this, in late fall, with
the introduction of a revolutionary line of floor-care products.
<PAGE>
"Several other ground-breaking products are on the drawing boards, all of them
originating from our collaborative R & D efforts with Omachron Technologies,
Inc."
Fantom Technologies also announced today that its Board of Directors declared a
quarterly cash dividend of 5 cents per share payable on June 30, 2000 to
shareholders of record at the close of business on May 31, 2000.
About Fantom Technologies
Fantom Technologies Inc. of Ontario, Canada is a growth-oriented,
household-appliance company, seeking the best ideas in technology that will make
daily living better for consumers. Over the past five years, Fantom has changed
the face of the vacuum cleaner industry in North America with its line of
dual-cyclonic vacuums. The Company is developing several new products based on
proprietary technology and has aggressive plans to expand the markets and
geographic territories in which it competes. Since May 1998, sixty-nine utility
patent applications have been filed for technologies the Company is either
acquiring or exclusively licensing through its association with Omachron
Technologies, Inc.
For more information about Fantom Technologies, visit the Company's web site at
www.fantom.com.
The foregoing information includes certain statements relating to the Company
which are forward-looking statements under Section 21E of the United States
Securities Exchange Act of 1934. The words "planned", "intend" and similar
expressions, as they relate to the Company or its management, are intended to
identify forward-looking statements. Such statements are based on assumptions
made by, and information available to, the Company. However, there are important
factors that could cause actual results to differ materially from those in such
forward-looking statements including, among others, the contingencies arising
from the uncertainties which are inherent in the development of new technology
and the unanticipated costs and time delays which often arise in the process of
developing new products based on innovative technology. The Company does not
intend, and assumes no obligation, to update the forward-looking statements to
reflect actual results, changes in assumptions or changes in other factors
affecting such statements.
2
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Financial Highlights
(Unaudited, in Canadian Dollars)
<TABLE>
<CAPTION>
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Consolidated Statements of Income
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Nine Months Ended Three Months Ended
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March 31 2000 1999 2000 1999
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<S> <C> <C> <C> <C>
Sales $175,321,281 $180,748,331 $57,356,592 $65,628,821
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Cost of Goods Sold $111,757,579 $114,828,728 $37,601,964 $41,663,033
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Gross Margin $63,563,702 $65,919,603 $19,754,628 $23,965,788
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Selling, General & Administrative $49,060,564 $47,371,735 $17,005,093 $17,084,328
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Research and Development Expense $1,044,552 $1,634,875 $108,249 $637,315
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Finance Charges ($96,171) ($40,087) $55,940 $25,244
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Income Before Taxes $13,554,757 $16,953,080 $2,585,346 $6,218,901
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Tax Provisions $5,012,000 $6,099,000 $952,794 $2,233,000
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Net Income $8,542,757 $10,854,080 $1,632,552 $3,985,901
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Earnings Per Share (Basic) $0.94 $1.21 $0.18 $0.44
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Average # of Shares Outstanding 9,080,971 8,997,360 9,099,181 9,008,802
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Earnings Per Share (Fully-Diluted) $0.90 $1.16 $0.18 $0.42
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</TABLE>
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Financial Highlights
(Unaudited, in Canadian Dollars)
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Consolidated Balance Sheets
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March 31 2000 1999
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Cash $ - $1,148
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Other Current Assets $70,279,259 $71,783,262
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Deferred Development Costs, Net of Amortization $2,886,114 $1,639,016
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Property, Plant & Equipment at Cost $44,506,221 $34,190,818
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Less Accumulated Depreciation ($9,992,990) ($6,668,393)
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Net Fixed Assets $34,513,231 $27,522,425
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Total Assets $107,678,604 $100,945,851
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Bank Indebtedness $5,647,989 $0
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Other Current Liabilities $31,377,826 $37,984,563
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Deferred Income Taxes $3,702,116 $3,855,300
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Deferred Currency-Hedging Exchange Gains $0 $3,136,491
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Share Capital $28,652,827 $27,910,287
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Retained Earnings $38,297,846 $28,059,210
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Total Liabilities & Shareholders' Equity $107,678,604 $100,945,851
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4
<PAGE>
For more information, please contact:
Allan Millman Steve Doorey
President & CEO Vice President, CFO
416-622-9740 Ext. 232 905-734-7476 Ext. 281
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