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): April 1, 1998
TELEGEN CORPORATION
(Exact name of registrant as specified in its charter)
California 14836 84-067214
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(State or other jurisdiction of (Commission File Number) (I.R.S. Employer
incorporation) Identification No.)
101 Saginaw Drive
Redwood City, California 94063
(Address of principal executive offices)
(650) 261-9400
(Registrant's telephone number, including area code)
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Item 5. Other Events
On April 1, 1998 (the "Closing Date"), Telegen Corporation, a
California corporation (the "Company"), sold to Synercom, Inc., a Nevada
corporation ("Synercom"), all of the assets of its wholly-owned subsidiary
Telegen Communications Corporation, a California corporation ("TCC"), for
consideration consisting of $500,000, Synercom's assumption of wage, tax, and
certain other liabilities, and certain royalty streams to the Company (ranging
between 1% to 7.5% of gross sales) on certain Synercom products for up to three
years. The $500,000 consisted of $350,000 in cash and $150,000 in the form of a
note with six quarterly installments, payment thereof to begin six months from
the Closing Date.
Required pro forma financial statements reflecting the Company's sale
of TCC will be filed with the Securities and Exchange Commission on or before
April 15, 1998.
As of April 1, 1998, the Company has obtained oral funding commitments
for $750,000, $500,000 of which has been advanced to the Company in cash (the
"Bridge Financing"). The securities issued in the Bridge Financing shall take
the form of notes with a face value of $750,000, convertible to the Company's
Common Stock, and two-month warrants for the purchase of the Company's Common
Stock for an aggregate purchase price of $750,000. The notes and warrants are
convertible at $0.38 per share. If such warrants are exercised, they would
provide the Company with an additional $750,000.
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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.
TELEGEN CORPORATION
Dated: April 6, 1998 /s/ Fred Y. Kashkooli
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Fred Y. Kashkooli,
Chief Executive Officer
