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 16, 2000
FINANCIALWEB.COM, INC
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(Exact name of registrant as specified in its Charter)
Nevada 000-25799 93-1202428
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(State or other jurisdiction of (Commission (IRS Employer
incorporation or organization) File Number) Identification No.)
201 Park Place, Suite 321
Altamonte Springs, Florida 32701
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(Address of principal executive offices including zip code)
(407) 834-4443
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(Registrant's telephone number, including area code)
Item 5. Other Events
As discussed in FinancialWeb.com, Inc.'s (the "Company") Form 10-KSB for
the year ended December 31, 1999 filed on June 2, 2000 and Form 10-QSB for the
quarter's ending March 31, and June 30, 2000 filed on June 13, 2000 and August
21, 2000, respectively, the Company has faced substantial increases in capital
expenditures and operating costs and, accordingly, has been actively seeking
sources of financing. As detailed in the Company's most recent Form 10-QSB for
the quarter ended June 30, 2000, the Company had enough cash on hand to continue
operations for three to six months from June 30, 2000 and has subsequently
depleted its cash reserves and is facing continuing losses. During this period,
the Company has conducted discussions with a number of equity and debt financing
sources, but has been unable to arrange financing on satisfactory terms. The
Company is currently in discussions with its principal secured creditor for
interim, short-term funding while the Company actively pursues other strategic
alternatives, including the sale of the Company.
Due to the Company's inability to obtain additional funding or generate
cash flow necessary to continue operations, the Company has determined to
significantly reduce its workforce. Approximately 31 of the Company's employees
were informed today that their employment with the Company would cease
immediately. In addition, Mr. Kevin Leininger, the Company's Chief Executive
Officer, resigned effective 12:00 P.M. October 16, 2000, although Mr. Leininger
will continue as a member of the Board of Directors. A core group of employees
required to maintain minimal operations during the period in which the Company
explores other alternatives (or to implement an orderly winding up of the
Company's affairs) will continue to work for a limited period of time.
In addition, the Board of Directors is also considering the dissolution of
the Company and the orderly liquidation of its assets, among other alternatives.
Because of the existing debt and other obligations of the Company, it is not
considered likely that any proceeds from a sale or liquidation would be adequate
to provide any funds to the Company's preferred or common stockholders.
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.
Dated: October 16, 2000 FINANCIALWEB.COM, INC.
By: /s/ Kevin Leininger
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Chief Executive Officer