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: May 21, 1998
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(Date of earliest event reported)
Bion Environmental Technologies, Inc.
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(Exact Name of Registrant as Specified in its Charter
Colorado 0-19333 84-1176672
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(State of (Commission (I.R.S. Employer
Incorporation) File No.) Identification No.)
555 17th Street, Suite 3310, Denver, Colorado 80202
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(Address and Zip Code of Principal Executive Offices)
Registrant's telephone number including area code: (303) 294-0750
ITEM 5. OTHER EVENTS.
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On May 21, 1998, Bion Environmental Technologies Inc. (the "Registrant")
entered into an agreement (the "Agreement") with LoTayLingKyur, Inc. ("LTLK")
under which LTLK will make a credit facility available to the Registrant
effective May 1, 1998. Under the terms of the Agreement the Registrant may
make monthly draws against the credit facility commencing in May 1998 up to
the following amounts: $50,000 per month for May through August 1998, $75,000
per month for September through December 1998, $100,000 per month for January
through October 1999. The monthly draws are non-cumulative and will only be
paid to the Registrant at the Registrant's request. In addition to the monthly
draws, which are not permitted to exceed $1,500,000 in the aggregate, an
additional $250,000 will be added to the balance in the form of consulting
fees that were performed by LTLK for the Registrant. The Agreement further
provides that the entire outstanding balance will be due and payable on
December 31, 1999. Interest is to be accrued monthly by the Registrant to LTLK
at the rate of 1% per month on the outstanding balance of the monthly draws
and will be added to the unpaid balance. Prepayment of any amount of the
outstanding principal by the Registrant requires the written permission of
LTLK. At the option of LTLK, the entire outstanding balance may be converted
into restricted and legended common stock of BION at $6.00 per share on or
before December 31, 1999. As additional consideration for making this credit
facility available to the Registrant, LTLK will be issued one warrant
authorizing LTLK to purchase one share of the restricted and legended common
stock of BION at a purchase price of $7.50 per share exercisable for a period
from date of issue of such warrant and expiring on December 31, 2000 for each
$2.00 of principal amount of the Note (no warrants will be issued for interest
accumulated on the principal amounts of the Note). A copy of the Agreement is
attached to this Report as Exhibit 10.1.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
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10.1 Agreement effective May 1, 1998, with LoTayLingKyur, Inc.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
BION ENVIRONMENTAL TECHNOLOGIES, INC.
Date: June 3, 1998 By: /s/ M. Duane Stutzman
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M. Duane Stutzman, Chief Financial Officer
INDEX TO EXHIBITS
Financial Statements and Exhibits.
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10.1 Agreement effective May 1, 1998, with LoTayLingKyur, Inc.