SECURITIES AND EXCHANGE COMMISSION
WASHINGTON DC 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report: June 11, 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 (IRS 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.
(A) On July 31, 1998, Bion Environmental Technologies, Inc. (which along
with its subsidiaries is referred to as the "Company") signed an agreement
(hereby referred to as the "Agreement") with Crystal Springs Farms, LLC.
(hereby referred to as "CSF"), of Wray Colorado, to design, install and
operate 37 Bion NMS' swine waste treatment systems (the Company and CSF are
collectively the "Parties"). The Agreement anticipates that the systems will
be installed at CSF sites located in Dundy County, Nebraska with planned
capacity for approximately 660,000 finishing hogs (the "Project"). This
Agreement replaces and supersedes an agreement between the Parties originally
signed on November 11, 1997 and subsequently amended on November 13, 1997,
November 20, 1997, December 31, 1997, and January 16, 1998 (see Forms 8-K
dated September 30, 1997 and December 1, 1997). Although preliminary financing
approval has been obtained for the construction of the Project, it is
currently unknown when, if ever, that actual funding will ultimately be made
available. The Agreement: a. calls for the Company to receive various
project-related fees from CSF during the construction phase totaling
$3,300,000(including $110,000 already paid by CSF to the Company), b.
establishes an operation and maintenance fee that will be in excess of
$400,000 per year once all systems are in operation (anticipated to begin for
the first system approximately 18 months after construction is started), c.
defines royalties payable by the Company to CSF which are anticipated to be
paid from revenues generated by the sales of BionSoil' and d. modifies the
terms of the original agreement in the following areas, among others: i.
Michael Bowman will not become a director of the Company, ii. there will be no
initial capital investment by CSF in the Company and iii. CSF will acquire no
warrants as part of the Project funding. A copy of the Agreement is attached
hereto as Exhibit 10.1.
(B) On July 21, 1998 the Rocky Creek Dairy was issued a permit by the
state of North Carolina to install a Bion NMS waste management system in order
to handle the waste from a 515-cow dairy. This contract signing and
subsequent permit approval is the first dairy Bion NMS in North Carolina.
Construction is expected to begin in late summer 1998.
(C) On June 11, 1998 Eason Farms was issued a permit by the state of North
Carolina to install a Bion NMS waste management system in order to handle the
waste from 3,960 finishing hogs. The permit had been applied for before the
pending moratorium took place and therefore, was not affected by it.
Construction is expected to be complete in the fall of 1998.
(D) Effective August 1, 1998 the North Carolina office of the Company
relocated to 138 Uzzle Industrial Drive, Clayton, North Carolina 27520. The
new location includes a larger more effective office space and a plot of
ground that is being utilized as a growth test area for a variety of plants
using the Company's BionSoil.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
Exhibit 10.1: Agreement between Bion Technologies, Inc. and Crystal
Springs Farms, LLC. dated July 31, 1998.
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.
BION ENVIRONMENTAL TECHNOLOGIES, INC.
Date: August 19, 1998 By: /s/ Duane Stutzman
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Duane Stutzman,
Chief Financial Officer
INDEX TO EXHIBITS
Financial Statements and Exhibits.
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Exhibit 10.1 Agreement between Bion Technologies, Inc. and Crystal Springs
Farms, LLC. dated July 31, 1998.