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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):
October 15, 2001 (October 15, 2001)
VALUESTAR CORPORATION
(Exact name of registrant as specified in its charter)
Colorado 0-22619 84-1202005
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(State or other jurisdiction (Commission File (I.R.S. Employer
of incorporation) Number) Identification No.)
360-22nd Street, #400, Oakland, California 94612
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(Address of principal executive offices) (Zip Code)
(510) 808-1300
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(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS
On October 15, 2001 the Company issued the following press release:
VALUESTAR TO CEASE OPERATIONS
OAKLAND (October 15, 2001) - ValueStar(R) Corporation (OTCBB: VLST),
pioneer of customer satisfaction ratings on local businesses, announced
today that it will cease operations. Interim funding during the last
several months was supplied primarily by New York investors many who
are now reevaluating their investments in the current market climate.
ValueStar recently launched its Customer-Rated Program, which allowed
ValueStar to automatically collect customer ratings and collect
commissions from offline credit card transactions in the San Francisco
Bay Area. ValueStar achieved important development milestones and
strategic arrangements with credit card issuing and merchant processing
banks. The Company had been successful in obtaining short-term
financing over the last several months and was seeking financing to
continue operations to expand the Customer-Rated Program into
additional markets.
"We remain convinced that our Customer-Rated Program presents
compelling advantages to consumers and service merchants with a
recurring revenue stream to ValueStar and its partners," said Jim
Stein, president and CEO of ValueStar. "Unfortunately we have been
unable to overcome the disruption in funding sources resulting from
factors including the September 11 terrorist attacks. We have been
unsuccessful in generating alternative funding sources."
ValueStar plans to retain a limited number of employees for a short
time to manage closure and evaluate any alternatives available to the
Company.
Forward Looking Statements
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
regarding ValueStar's business strategy and future plans of operations.
Forward-looking statements involve known and unknown risks and
uncertainties; both general and specific to the matters discussed in
this press release. These and other important factors, including those
mentioned in various Securities and Exchange Commission filings made
periodically by ValueStar, may cause ValueStar's actual results and
performance to differ materially from the future results and
performance expressed in or implied by such forward-looking statements.
The forward-looking statements contained in this press release speak
only as of the date hereof and ValueStar expressly disclaims any
obligation to provide public updates, revisions or amendments to any
forward-looking statements made herein to reflect changes in
ValueStar's expectations or future events.
# # #
Reference is also made to the Company's periodic reports filed with the
Securities and Exchange Commission and, in particular, the risk factors set
forth therein.
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ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial statements of businesses acquired.
None
(b) Pro forma financial information.
None
(c) Exhibits
None
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.
VALUESTAR CORPORATION
Date: October 15, 2001 By: /s/ JAMES A. BARNES
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James A. Barnes
Treasurer and Secretary
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