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): March 29, 2005
NCT Group, Inc.
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(Exact name of registrant as specified in its charter)
Delaware 0-18267 59-2501025
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
20 Ketchum Street, Westport, CT 06880
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number including area code: (203) 226-4447
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Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
|_| Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 1.01. Entry into a Material Definitive Agreement.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
Item 3.02. Unregistered Sales of Equity Securities.
On March 29, 2005, NCT Group, Inc. ("NCT") issued Carole Salkind an 8%
convertible note in the principal amount of $390,000, for which Ms. Salkind paid
NCT $390,000 in cash. The note matures on September 29, 2005. The note is
secured by substantially all of the assets of NCT. The note bears interest at 8%
per annum until the due date of the note, and bears interest at a default rate
of 13% on any amount of principal or interest that is not paid when due.
Interest is payable upon maturity of the note. At the election of Ms. Salkind,
the note may be converted into 21,666,667 shares of NCT common stock at a
conversion price per share of $0.018 or may be exchanged for shares of common
stock of any subsidiary of NCT (except Pro Tech Communications, Inc.) that makes
a public offering of its common stock (at the public offering price). The note
contains events of default, any one of which (if not cured) triggers a default
penalty of 10% of the then outstanding principal. If triggered, the default
penalty, along with the outstanding principal and accrued interest, becomes
immediately due and payable. Events of default include the failure to pay
principal and interest when due and the failure to issue shares of common stock
upon exercise of conversion rights.
In conjunction with the issuance of the note, NCT issued Ms. Salkind a five-year
warrant to acquire 7,000,000 shares of NCT common stock at an exercise price per
share of $0.018.
The issuance of the note and warrant was not registered under the Securities Act
of 1933, as amended, in reliance upon the exemption set forth in Section 4(2) of
the Securities Act relating to transactions by an issuer not involving a public
offering.
Item 9.01 Financial Statements and Exhibits.
(c) Exhibits
4.1 Warrant dated March 29, 2005 issued to Carole Salkind for the purchase
of 7,000,000 shares of NCT common stock at a purchase price of $0.018
per share.
10.01 Secured Convertible Note in principal amount of $390,000 dated March
29, 2005 issued by NCT to Carole Salkind.
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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.
NCT GROUP, INC.
By: /s/ Cy E. Hammond
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Cy E. Hammond
Senior Vice President and
Chief Financial Officer
Date: April 4, 2005
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