U.S. 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 3, 1999
eConnect
(Exact name of registrant as specified in its charter)
Nevada
(State or jurisdiction of incorporationor organization)
33-68570
(Commission File Number)
43-1239043
(I.R.S. Employer Identification Number)
2500 Via Cabrillo Marina, Suite 112, San Pedro, California 90731
(Address of principal executive offices) (Zip Code)
Registrant's telephone number: (310) 514-9482
(Former name or former address, if changed since last report)
ITEM 5. OTHER EVENTS.
In its form 10-QSB for the period ended on September 30, 1999,
the Registrant incorrectly reported that Thomson Kernaghan was a
party to the debenture agreement and had committed certain acts
which gave the Registrant offset rights against the debenture.
The entity that the Registrant was referring to which provided
financing to the Registrant was CALP II, LP. Upon due diligence
having been conducted by the Registrant's litigation counsel,
the Registrant has determined that there was, and is, no
foundation in law or fact for the statement made by the
Registrant pertaining to CALP or Thomson Kernaghan in said Form
10-QSB. There was no actionable conduct or any wrongdoing by
CALP or Thomson Kernaghan with respect to the Registrant or its
shareholders. In recognition and acknowledgment of this fact
and the undisputed financial obligation owed by the Registrant
to CALP based on a convertible debenture agreement, which is the
subject matter of the recent litigation initiated by CALP
against the Registrant, the Registrant has reached a settlement
agreement with CALP, dated December 3, 1999. This settlement
calls for the payment of $200,000 and 5,000,000 free trading
shares of the Registrant to CALP in accordance with the terms of
the debenture agreement. This settlement agreement fully and
finally resolves that litigation. The Registrant's Board of
Directors, with the advice and assistance of the Registrant's
litigation counsel, has determined that the settlement, now
completed, is mutually beneficial to the Registrant and its
shareholders.
SIGNATURE
Pursuant to the requirements of Section 13 or 15(d) 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.
eConnect
Dated: January 12, 2000 By: /s/ Thomas S. Hughes
Thomas S. Hughes, President
