UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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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) October 11, 2000
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GALAGEN INC.
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(Exact name of registrant as specified in its charter)
DELAWARE 0-27976 41-1719104
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(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
SUITE 301
301 CARLSON PARKWAY
MINNETONKA, MINNESOTA 55305
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (952) 258-5500
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ITEM 5. OTHER EVENTS.
As previously reported in a news release dated September 29, 2000, the
listing of the Company's common stock was transferred from the Nasdaq National
Market to the Nasdaq SmallCap Market effective October 2, 2000 pursuant to an
exception from the net tangible assets requirement granted by the Nasdaq Listing
Qualifications Panel pursuant to a letter from Nasdaq dated September 27, 2000.
Because the Company's net tangible assets have been below the $2 million minimum
required by the Nasdaq SmallCap, Nasdaq conditioned the listing of the Company's
common stock on the Company filing with the Securities and Exchange Commission
and Nasdaq by October 16, 2000, a pro forma balance sheet as of August 31, 2000
evidencing net tangible assets of at least $2 million, and filing by January 2,
2001, a pro forma balance sheet as of November 30, 2000 evidencing tangible net
assets of at least $3.8 million.
On October 11, 2000, the Company sold 1,750,000 shares of common stock
for $.80 per share to certain investors and issued warrants to purchase 175,000
shares of common stock (the "Financing"). The warrants have a term of ten years
and an exercise price of $.80 per share and are exercisable immediately. The
Company agreed to file a registration statement relating to the resale of the
shares of common stock and the shares of common stock underlying the warrants
within 30 days of closing the Financing.
In accordance with Nasdaq's request, the Company has prepared the
following balance sheet as of August 31, 2000, including pro forma adjustments
for any significant events or transactions occurring on or before the filing
date of this Form 8-K. The pro forma adjustments relate to the Financing and
other significant events or transactions occurring on or before the date of this
Form 8-K. The information presented on the attached August 31, 2000 pro forma
balance sheet has not been audited by independent accountants. This information
is provided solely for the purpose of complying with the requirements delineated
by Nasdaq pursuant to the exception to the listing requirement granted to the
Company. The pro forma balance sheet as of August 31, 2000 reflects tangible net
assets of $2.2 million, which is above the minimum required under the Nasdaq
SmallCap Market listing requirements and satisfies the first requirement set
forth in the Nasdaq letter. The Company is proceeding with plans that will
enable the Company to evidence tangible net assets of at least $3.8 million by
January 2, 2001.
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GALAGEN INC.
PRO FORMA BALANCE SHEET
AS OF AUGUST 31, 2000
(UNAUDITED)
ESTIMATED
ASSETS SEPTEMBER
FINANCING OPERATIONS AUGUST 31, 2000
AUGUST 31, 2000 ADJUSTMENT ADJUSTMENT PRO FORMA
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Current assets:
Cash and cash equivalents............................ $ 989,633 $ 1,312,500 $ (190,000) $ 2,112,133
Accounts receivable, net............................. 70,267 70,267
Prepaid expenses..................................... 375,981 (132,000) (50,000) 193,981
Inventory, net....................................... 132,607 132,607
----------------- -------------- ------------------ -----------------
Total current assets................................... 1,568,488 2,508,988
Property and equipment................................. 715,329 715,329
Less accumulated depreciation........................ (487,501) (9,000) (496,501)
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227,828 218,828
Customer list.......................................... 300,000 (7,000) 293,000
Goodwill............................................... 36,467 (8,000) 28,467
Other intangible assets................................ 134,739 (8,000) 126,739
Deferred expenses...................................... 10,416 (10,000) 416
----------------- -------------- ------------------ -----------------
481,622 448,622
Total assets........................................... $ 2,277,938 $ 1,180,500 $ (282,000) $ 3,176,438
================= ============== ================== =================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable..................................... $ 812,620 $ 60,000 $ 872,620
Other current liabilities............................ 21,681 21,681
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Total current liabilities.............................. 834,301 894,301
Commitments
Other long-term liabilities............................ 45,000 45,000
Stockholders' equity:
Preferred stock, $.01 par value:
Authorized shares - 15,000,000
Issued and outstanding shares - none in 2000...... - -
Common stock, $.01 par value:
Authorized shares - 40,000,000
Issued and outstanding shares - 10,518,371
as of August 31, 2000; 12,268,371 as adjusted..... 105,184 17,500 122,684
Additional paid-in capital........................... 64,335,622 1,163,000 65,498,622
Accumulated deficit ................................. (63,042,169) (342,000) (63,384,169)
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Total stockholders' equity........................... 1,398,637 2,237,137
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Total liabilities and stockholders' equity............. $ 2,277,938 $ 1,180,500 $ (282,000) $ 3,176,438
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Net Tangible Asset Calculation:
Net Assets per August 31, 2000 Pro forma Balance Sheet $ 2,237,137
Less Goodwill 28,467
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Net Tangible Assets $ 2,208,670
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ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(a) Financial statement of business acquired: not required
(b) PRO FORMA financial information: not required
(c) Exhibits:
Exhibit
No. DESCRIPTION METHOD OF FILING
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99 Form of Subscription Agreement and Electronic
Investment Letter. Transmission
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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.
GALAGEN INC.
Date: October 13, 2000 By /s/ Franklin L. Kuhar
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Franklin L. Kuhar
Vice President, Chief Financial Officer
and Secretary
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