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: June 30, 1998
(Date of earliest event reported)
EcoTyre Technologies, Inc.
(Exact name of registrant as specified in its charter)
Delaware 0-27240 11-3234026
(State or other (Commission IRS Employer
jurisdiction of File Number) Identification Number)
Incorporation)
895 Waverly Avenue Holtsville, New York 11742
(Address of principal executive offices) (Zip Code)
Registrant's telephone number including area code
(516) 289-4545
(Former name or Former address, if changed since last
report.)
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Item 5: Other Events.
(a) On July 1, 1998 the Company laid off its manufacturing
staff as part of a strategic plan to discontinue its
manufacturing business in its Holtsville facility and
to continue operations as a wholesale distributor of
new and remanufactured tires. As part of that plan ,
the Company has entered into a Letter Of Intent with
a company in the business of tire reclamation for
that company to acquire the manufacturing equipment to
produce tires at the acquiring company's existing
location. EcoTyre would retain the exclusive rights to
market and distribute the tires internationally. The
sale of the equipment would relieve the Company of any
further liability to PheonixCor, Inc., the present
lienholder, and allow the Company to relocate from its
present facility to smaller office substantially
reducing its overhead while building the tire
distribution business. The Company anticipates
finalizing a binding agreement within the next few
weeks.
(b) On June 29, 1998 the Company filed a form 12b-25 with
the Securities and Exchange Commission to extend its
time to file its Form 10-KSB for the year ending March
31, 1998. Although the Company's auditors, BDO
Seidman, LLP, had begun the necessary steps to undergo
the audit, the Company has been unable to pay the
auditors the balance of the prior years audit fees
and other accrued fees creating an independence
problem. As a result of the Company's inability to pay
this balance, the Company will be unable to file the
10KSB in a timely fashion. BDO Seidman has agreed to
complete the audit upon payment by the Company of the
outstanding balance.
(c) On February 25, 1998 Arthur Rosenberg resigned from
the Board of Director's of the Company on favorable
terms citing other personal commitments as the reason
for his resignation. Mr Rosenberg's term was due to
expire at the 1999 annual meeting of shareholders.
On June 11, 1998, Theresa A. Mari resigned from the
Board of Director's of the Company on favorable terms
citing other personal commitments as the reason for
said resignation. Ms. Mari 's term was due to expire
at the 1999 annual meeting of shareholders. She will
continue to act in her capacity as an attorney for the
Company.
(d) On July 9, 1998 the Company received notice from
Nasdaq that its Securities are subject to delisting as
the securities do not currently meet the continued
listing requirement of the Nasdaq Small Cap market.
On July 10, 1998 the Company sent a letter to Nasdaq
requesting that an oral hearing be granted to the
Company's so that the Company may present its plan for
continued listing on the Nasdaq Small Cap market. The
Company has not yet been notified of a hearing date.
<PAGE>
(e) The Company previously announced that it had entered
into a three year Distribution Agreement with General
Investment Group. While GI Group has purchased four
containers of tires, payment has been received for only
one container. The late payment by GI Group may force
the Company to demand return of the three containers
not yet paid for. The decision by the Company to
discontinue its manufacturing operations will have an
impact on the value of that contract previously
announced, however, the Company may elect to continue
distributing to GI Group on a COD basis.
Signatures
Pursuant to the requirements of the Securities Exchange
Act of 1934, the Registrant has caused this report to be
signed on its behalf by the undersigned thereunto duly
authorized.
By:/s/Vito F. Alongi
Vito F. Alongi, President
Dated: July 14, 1998
