SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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): June 30, 1997
GENTA INCORPORATED
(Exact name of registrant as specified in its charter)
Commission file number 0-19635
DELAWARE 33-0326866
(State or other jurisdiction of (IRS Employer Identification Number)
incorporation or organization)
3550 GENERAL ATOMICS COURT, SAN DIEGO, CA 92121
(Address of principal executive offices)
(Zip Code)
(619) 455-2700
(Registrant's telephone number, including area code)
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GENTA INCORPORATED
FORM 8-K
CURRENT REPORT
TABLE OF CONTENTS
Item 5. Other Events
Signature
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ITEM 5. OTHER EVENTS
On February 6, 1997, the Company announced that, effective February 7,
1997, the Company's Common Stock, formerly listed on The Nasdaq National Market,
would be listed on The Nasdaq SmallCap Market via an exception from the bid
price and capital and surplus requirements of The Nasdaq SmallCap Market. The
Nasdaq Listing Qualifications Panel (the "Panel") granted the Company a
temporary exception (the "Exception") from these standards subject to the
Company's meeting certain conditions.
On April 11, 1997, the Company was notified that the Panel had
determined to modify the terms of the Exception as follows (the "Revised
Exception"). First, on or before April 15, 1997, the Company must make a public
filing with the Securities and Exchange Commission (the "SEC") and Nasdaq
evidencing minimum capital and surplus of $2,700,000. The filing must contain a
February 28, 1997 balance sheet with pro forma adjustments for any significant
transactions occurring on or before the filing date. Second, on or before May 7,
1997, the Company must provide Nasdaq with an April 30, 1997 balance sheet
evidencing compliance with the $1,000,000 maintenance requirement for capital
and surplus. Third, on or before June 9, 1997, the Company must provide Nasdaq
with a May 31, 1997 balance sheet evidencing compliance with the $1,000,000
maintenance requirement for capital and surplus. Finally, on or before July 7,
1997, the Company must make a public filing with the SEC and Nasdaq (the "Final
Filing Requirement") containing a June 30, 1997 balance sheet with pro forma
adjustments for any significant transactions occurring on or before the filing
date and evidencing a minimum of $6,000,000 in capital and surplus and
compliance with all requirements for continued listing. The Panel has further
informed the Company that in the event the Company fails to meet any of the
terms of this Revised Exception, its securities will be immediately deleted from
The Nasdaq Stock Market.
On April 15, 1997, in accordance with the Revised Exception, the
Company made a public filing with the SEC and Nasdaq of an unaudited condensed
consolidated balance sheet as of February 28, 1997, showing capital and surplus
of $2,722,091. On May 6, 1997, in accordance with the Revised Exception, the
Company provided Nasdaq with an unaudited condensed consolidated balance sheet,
showing capital and surplus of $1,383,984. On June 6, 1997, in accordance with
the Revised Exception, the Company provided Nasdaq with an unaudited condensed
consolidated balance sheet, showing capital and surplus of $1,176,914. To comply
with the Final Filing Requirement, the Company is hereby filing with the SEC
this current report on Form 8-K containing an unaudited condensed consolidated
balance sheet as at June 30, 1997, showing capital and surplus of $13,338,724
and also concurrently sending a copy hereof to Nasdaq.
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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 hereunto duly authorized.
GENTA INCORPORATED
Date: July 7, 1997
/s/Michael S. Weiss
-----------------------------
Michael S. Weiss
Interim Chairman of the Board
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GENTA INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEET
(UNAUDITED)
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JUNE 30,
ASSETS 1997
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Current assets:
<S> <C>
Cash and cash equivalents ..................................................................... $ 9,969,724
Subscription receivable ....................................................................... 4,154,007
Trade accounts receivable ..................................................................... 520,630
Inventories ................................................................................... 873,457
Other current assets .......................................................................... 190,590
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Total current assets ............................................................................. 15,708,408
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Property and equipment, net ...................................................................... 2,917,910
Intangibles, net ................................................................................. 4,074,665
Other assets, net ................................................................................ 1,087,149
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$ 23,788,132
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable .............................................................................. $ 2,614,878
Other accrued expenses ........................................................................ 2,210,374
Deferred revenue .............................................................................. 132,110
Short term notes payable ...................................................................... 2,350,000
Current portion of notes payable and capital lease obligations ................................ 221,602
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Total current liabilities ........................................................................ 7,528,964
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Notes payable, less current portion .............................................................. 917,431
Deficit in joint venture ......................................................................... 2,003,013
Stockholders' equity:
Preferred stock; 5,000,000 shares authorized:
Series A convertible preferred stock, $.001 par value; 528,100 shares issued and outstanding
at June 30, 1997, liquidation value is $31,113,892 at June 30, 1997 ...................... 528
Series C convertible preferred stock, $.001 par value; 1,144 shares issued and outstanding
at June 30, 1997, liquidation value is $1,202,422 at June 30, 1997 ....................... 1
Series D convertible preferred stock, $.001 par value; 174,580 shares issued and outstanding
at June 30, 1997, liquidation value is $16,813,342 at June 30, 1997 ...................... 175
Common stock, $.001 par value; 70,000,000 shares authorized; 4,378,852 shares issued and
outstanding at June 30, 1997 ............................................................... 4,379
Additional paid-in capital .................................................................... 122,732,087
Accumulated deficit ........................................................................... (114,156,246)
Accrued dividends payable ..................................................................... 4,807,776
Notes receivable from stockholders ............................................................ (49,976)
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Total stockholders' equity ....................................................................... 13,338,724
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$ 23,788,132
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