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) September 5, 1996
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U.S. ELECTRICAR, INC.
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(Exact name of registrant as specified in its charter)
California 0-25184 95-3056150
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
5 Thomas Mellon Circle, San Francisco, CA 94134
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 415-656-2400
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Item 2 Acquisition or Disposition of Assets
Effective as of September 5th, 1996, the Company disposed of substantially all
of the assets of its wholly-owned subsidiary, Industrial Electric Vehicles Inc.
The assets sold included inventory, receivables, work-in-process, parts,
furniture fixtures, machinery, tools, tooling, supplies, computers, software,
sales and marketing material, and equipment related to the industrial business.
The Company retained certain international rights to market the industrial
product line. The sale was made to Legend Electric Vehicles, Inc., a California
corporation. The principals of Legend include several former employees of the
Company, including the manager of Industrial Electric Vehicles.
The fixed purchase price for the assets was One Million Eighty Thousand Dollars
($1,080,000). An additional, contingent amount not to exceed One Hundred
Seventeen Thousand Dollars ($117,000), which reflects a portion of recevables
collections, may also be paid. The fixed purchase price payment was made as
follows:
* Buyer assumed, and was credited with, the principal amount of $1,004,504.00
outstanding under a Promissory Note ("Note") owed by the Company to the
previous owners of the business, from whom the Company purchased the
business three years ago. The previous owners, as holders of the Note,
approved the assignment and assumption of the Note, and have released the
Company from all obligations thereunder. The Note was secured by
substantially all of the assets of the subsidiary included in the sale
transaction. The principal amount outstanding under the Note was
* $1,004,504.00 on the date of the sale.
* Buyer agreed to assume, and was credited with, up to $88,000 of outstanding
warranty obligations for a period of twelve months on claims submitted
after the date of closing. The credit would not be reduced if actual
warranty claims are less.
Item 7 Financial Statements and Exhibits
(c) Exhibits
Exhibit 10.87 Agreement For Purchase and Sale of Assets by and
between Industrial Electric Vehicles, Inc., U.S.
Electricar, Inc., and Legend Electric Vehicles,
Inc., made effective as of September 5th 1996.