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): DECEMBER 24, 1999
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CONVERGENCE COMMUNICATIONS, INC.
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(Exact name of registrant as specified in its charter)
NEVADA 00-21143 87-0545056
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(State or other jurisdiction (Commission File (IRS Employer
of incorporation) Number) Identification No.)
102 WEST 500 SOUTH, SUITE 320, SALT LAKE CITY, UTAH 84101
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (801) 328-5618
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Item 2. Acquisition or Disposition of Assets.
On December 24, 1999, Convergence Communications, S.A. de C.V. ("CCI
Mexico"), a subsidiary of Convergence Communications, Inc. (the "Company"),
acquired all of the outstanding stock of International Van S.A. de C.V., a
Mexican corporation ("Intervan"). Intervan provides data networking and network
access services to over 420 customers in Mexico through a nationwide ATM
network. The seller of Intervan was Controladora S.O.E., S.A. de C.V., a Mexican
corporation.
The total purchase price for Intervan was $21 million, of which CCI
Mexico paid $15 million in cash at the closing. The balance of the purchase
price was paid through CCI Mexico's delivery of two promissory notes which are
due on the first and second anniversaries of the closing. The promissory note
due on December 24, 2000 is in the amount of $4,500,000 and is non-interest
bearing. The promissory note due on December 24, 2001 is in the amount of
$1,500,000 and bears interest during the second year at the rate of 8% per
annum. The amounts represented by the promissory notes are subject to downward
adjustment if Intervan suffers recurring revenue losses after the closing.
Item 7. Financial Statements and Exhibits.
(a) FINANCIAL STATEMENTS OF BUSINESSES ACQUIRED AND PRO FORMA FINANCIAL
INFORMATION. The Company will file, as an amendment to this report and within
the time period set forth in Item 7(a)(4), the financial statements for the
acquired business for the period specified in Rule 3-05(b) of Regulation S-X, as
promulgated under the Securities Exchange Act of 1934, as amended, and as
prepared in accordance with the requirements (other than with respect to
supporting schedules) of Regulation S-X, together with a manually signed
accountant's report as provided in Rule 2-02 of Regulation S-X and any pro forma
financial information that would be required pursuant to Article 11 of
Regulation S-X.
(b) EXHIBITS. Not applicable.
CONVERGENCE COMMUNICATIONS, INC.
/s/
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By: Jerry Slovinski, Chief Financial Officer
Dated: January 13, 2000