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: 1/11/96
THE CANTON INDUSTRIAL CORPORATION
(Exact name of registrant as specified in its charter)
NEVADA
(State or other jurisdiction of incorporation or organization)
I-9418 87-0509512
(Commission File Number) (IRS Employer Identification Number)
268 West 400 South, Suite 300
Salt Lake City, Utah 84101
(Address of principal executive offices)
(801) 575-8073
(Registrant's telephone number, including area code)
Item 2. Acquisition or Disposition of Assets
The Canton Industrial Corporation, a Nevada Corporation herein referred to as
"Canton", in continuing its policy of acquiring real estate properties,
purchased a parcel of land on December 27, 1995. The land was purchased by Oasis
International Hotel & Casino, Inc., a Nevada corporation, jointly with Oasis
International Corporation, a Nevada corporation, both wholly owned subsidiaries
of Canton from Solar Logos Foundation. The land consists of over 1,100 acres of
mostly vacant land located in Elko County, Nevada, and is approximately 150
miles west of Salt Lake City, Utah. The purchase also includes all improvements
to the property which consist of a service station, small retail and food
service operations, and a mobile home park. It also purchased the water rights
of over sixteen hundred acre feet of water per year. The Companies intend future
development of the property.
The transaction was structured whereby Oasis International Hotel & Casino, Inc.
holds fee title on approximately 51 acres of land on which the retail operations
are located. Consideration for this part of the transaction was Five Hundred and
Sixty Thousand Dollars ($560,000), financed by a $300,000 Promissory Note
payable to a non-related individual, with payments of interest only at eighteen
percent per annum and a maturity of two years; 500,000 shares of restricted
common stock in Canton issued to the Promissory Note holder; and interest free
loans from other Canton subsidiaries.
Oasis International Corporation owns the balance of the property, which is
subject to an underlying Trust Deed of $900,000 provided by the seller. Under
the terms and conditions of the trust deed, for the first three years, an
interest only payment is due quarterly with an interest rate of seven percent
per annum. After the third year, the principal reductions are required and are
based on the entire amount being paid off by the tenth anniversary of the date
of purchase. There are no pre-payment penalties, and the contract provides for
the payoff and reconveyance of specific tracts of land within the parcels
covered by the deed as Canton's development plans proceed.
Canton has formed another subsidiary, Oasis Services Management Corporation,
which is responsible for retail activities at this location. It has on-site
employees and managers. Canton is presently attempting to locate a suitable
operator to lease the retail operations.
Item 7. Financial Statements and Exhibits
The purchase of the property will increase the Company's assets by approximately
$1,800,000, liabilities by approximately $1,500,000, and stockholders' equity by
approximately $300,000 and will have no significant effect on the net income.
Exhibits required to be attached by Item 601 of Regulation S-K are listed in the
Index to Exhibits beginning on page 5 of this Form 8-K, which is hereby
incorporated by this reference.
SIGNATURES
Pursuant to the requirement of the Securities Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: January 11, 1996
The Canton Industrial Corporation
By: /s/ Steven A. Christensen, President
INDEX TO EXHIBITS
EXHIBIT PAGE DESCRIPTION
NO. NO.
MATERIAL CONTRACTS
10(i)(a) 6 Real Estate Sales Contract dated December 14, 1995 between
the Solar Logos Foundation and Oasis International Hotel &
Casino, Inc. jointly with Oasis International Corporation.
10(i)(b) 20 Agreement relating to water rights dated December 14, 1995
between Solar Logas Foundation and Oasis International
Hotel & Casino and Oasis International Corporation.
10(i)(c) 31 Promissory Note dated December 27, 1995 between Oasis
International Corporation and Solar Logos Foundation.
10(i)(d) 33 Trust Deed Note dated December 27, 1995 between Oasis
International Hotel & Casino, Inc. and Howard Bernstein.