SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K/A
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): July 6, 1999
American Absorbents Natural Products, Inc.
(Exact name of registrant as specified in its charter)
Utah
(State or other jurisdiction of incorporation)
0-23356 87-0421089
(Commission file number) (IRS employer identification)
3800 Hudson Bend Road, Suite 300
Austin, Texas 78734
(Address of principal executive offices)
(512) 266-2481
(Registrant's telephone number)
N/A
(Former name or former address, if changed since last report)
ITEM 1. CHANGES IN CONTROL OF REGISTRANT
On July 6, 1999, American Absorbents Natural Products, Inc. (AANP) acquired
2,800,000 shares of its common stock from its principal shareholder, Austin-
Young, Inc. The stock was purchased for $924,000, a price of thirty-three
cents ($.33) per share. Prior to the purchase,the company had 7,420,252 shares
of common stock outstanding. The company was also granted the proxy to vote
the 2,800,000 shares of common stock at the annual shareholders meeting.
The terms of the purchase included an initial payment of $92,400 for 280,00
shares of common stock. The balance of the purchase price is evidenced by a
non-interest bearing note of $831,600 payable over a seven-year period. The
note is payable in equal annual installments of $118,800 beginning July 15,
2000. Subsequent payments are dueon July 15 of each year. The company is
entitled to a twenty percent (20%) reduction (discount) on the remaining
unpaid balance if the note is paid in full by July 15, 2001. The note is
collateralized by 2,520,000 shares of common stock of AANP. The collateral
and security interest on the 2,520,000 shares of common stock will be released
pro rata as payments are made. Upon each note payment, 360,000 shares will be
released from the collateral and security interest until all such stock is
released, as summarized below:
Payment Date Amount Shares Released
Payments subject to a collateral & security interst:
First (7/15/2000) $ 118,800 360,000
Second (7/15/2001) 118,800 360,000
Third (7/15/2002) 118,800 360,000
Fourth (7/15/2003) 118,800 360,000
Fifth (7/15/2004) 118,800 360,000
Sixth (7/15/2005) 118,800 360,000
Seventh (7/15/2005) 118,800 360,000
$ 831,600 2,520,000
The transaction with Austin-Young, Inc. also included the conversion of a
$130,400 demand note to an installment note--this note relates to money that
Austin-Young, Inc. had advanced to AANP for working capital. The new
installment note is in the amount of $133,321 (original balance plus accrued
interest to September 1, 1999) and provides for interest at 8.25% per annum,
and twenty-four (24) monthly payments of $6,324.65, beginning September 1,1999,
and continuing monthly thereafter until paid in full.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
No financial statements or exhibits are required to be filed with this Form 8-K.
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.
American Absorbents Natural Products, Inc.
(Registrant)
Date: July 19, 1999 By:
Robert L. Bitterli, President and
Chief Executive Officer
