UNITED STATES
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) November 18, 1996
MERIT STUDIOS, INC.
(Exact name of Registrant as specified in charter)
DELAWARE 1 - 12516
(State of incorporation) (Commission File Number)
75-2231432
(IRS Employer Identification Number)
13707 Gamma Road
Dallas, Texas 75244
(Address of principal executive office)
Registrant's telephone number, including area code: (972) 385 2353
Item 1. Changes in Control of Registrant.
Not applicable.
Item 2. Acquisition or Disposition of Assets.
Not applicable.
Item 3. Bankruptcy or Receivership.
Not applicable.
Item 4. Changes in Registrant's Certifying Accountant.
Not applicable.
Item 5. Other Events.
Registrant has elected to defer, and not declare and pay,
the quarterly cash dividend on Registrant's 4% Cumulative
Convertible Preferred Stock which pursuant to the Designation,
Preferences, Rights and Limitations of the 4% Cumulative
Convertible Preferred Stock otherwise would have been declared
at $0.04 per share payable on December 15, 1996 to stockholders
of record on November 30, 1996. The quarterly cash dividend
was deferred for purposes of conserving working capital. The
quarterly cash dividend will accumulate pursuant to the terms
of the Designation, Preferences, Rights and Limitations of the
4% Cumulative Convertible Preferred Stock.
Item 6. Resignations of Registrant's Directors.
Not applicable.
Item 7. Financial Statements and Exhibits.
Not applicable.
Item 8. Change in Fiscal Year.
Not applicable.
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.
MERIT STUDIOS, INC.
/S/ W. D. HOLLON
By:
W. D. Hollon
Vice President, Finance and
Chief Financial Officer
November 18, 1996
