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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 29, 2000
LEADINGSIDE, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 0-21860 06-1232140
(State or other jurisdiction (Commission File (IRS Employer
of incorporation) Number) Identification No.)
One Canal Park, Cambridge, Massachusetts 02141
(Address of principal executive offices and zip code)
Registrant's telephone number, including area code:
(617) 621-0820
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ITEM 5. OTHER EVENTS
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On January 16, 2001, LeadingSide, Inc. announced a reorganization that will
reduce its workforce by approximately 50 percent, or 60 employees. The Company
also announced that it is in active discussions with strategic partners
regarding interim financing arrangements while it considers its options for the
longer term. The Company said that existing cash and proceeds from work for
existing customers would not be sufficient to fund operations beyond the end of
January. A copy of the Company's January 16, 2001 press release is filed
herewith as Exhibit 99.1.
As disclosed in the Current Report on Form 8-K filed on December 29, 2000,
LeadingSide's common stock was delisted from the Nasdaq Stock Market on December
29, 2000. Under LeadingSide's Restated Certificate of Incorporation, the
delisting had the effect of adjusting the conversion price of LeadingSide's
Series C Convertible Preferred Stock from 95% to 85% of the average of the three
lowest closing bid prices of LeadingSide's common stock taken over the thirty
consecutive trading days before a conversion of the Preferred Stock. Effective
January 3, 2001, the delisting also triggered the obligation to pay liquidated
damages under the Series C Convertible Preferred Stock purchase agreement in the
amount of $200,000 for each week until the common stock is again listed on
Nasdaq, up to a maximum of 33% of the purchase price of the Preferred Stock, or
$1.063 million. The holder of the Preferred Stock may elect to have the
liquidated damages paid in shares of common stock upon conversion, rather than
being paid in cash.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
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(c) Exhibit 99.1 LeadingSide, Inc. Press Release dated January 16, 2001
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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.
Date: January 16, 2001 LEADINGSIDE, INC.
By: /s/ Michael Gonnerman
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Michael Gonnerman
Vice President and Chief Financial Officer
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