SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
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FORM 8 - K
Current Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
October 11, 2000
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(Date of Report)
Magnitude Information Systems, Inc.
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(Exact name of registrant as specified in its charter)
STATE OF DELAWARE 33-20432-FW 75-2228828
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
401 State Route 24, Chester, New Jersey 07930
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (908) 879-2722
Item 5. Other Events
On October 10, 2000 the Company issued a Press Release, copy attached
hereto as an exhibit, relating to the execution and delivery of a common stock
purchase agreement and related agreements with Torneaux Ltd., a private equity
fund organized under the laws of The Bahamas.
Item 7. Financial Statements and Exhibits.
(c) EXHIBITS.
10 Company Press Release dated October 10.
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 11, 2000 MAGNITUDE INFORMATION
SYSTEMS, INC.
By: /s/Steven D. Rudnik
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Steven D. Rudnik
President and CEO
EXHIBIT 10
For Immediate Release
Contact:
Doug Mealy
Magnitude Information Systems, Inc.
518.283.4090, Ext. 232
dmealy@magnitude.com
Howard Siegel
Magnitude Information Systems, Inc.
Vice President Investor Relations
888.434.3021
hgsiegel@magnitude.com
MAGNITUDE SECURES EQUITY FINANCING COMMITMENT
CHESTER, NEW JERSEY - October 10, 2000 -- Magnitude Information Systems, Inc.
(OTC-BB: MAGY) announced today that it has entered into an equity financing
agreement with Torneaux Ltd. under which the company may sell up to between $1.2
and $4.2 million of its common stock. The availability of financing under the
agreement is subject to various conditions, including the declaration of
effectiveness by the Securities and Exchange Commission of a resale registration
statement to be filed by Magnitude. Magnitude, a leading developer of ergonomic
productivity software products, was recently awarded a patent for proprietary
technology underlying its proven ergonomic productivity software system.
The equity line established by the agreement permits Magnitude to sell common
stock to Torneaux Ltd. periodically over a 15 month period based upon a discount
to the then current market price of Magnitude's shares, which discount itself is
based upon the market price. Subject to the conditions in the agreement, the
timing and number of shares to be sold is at the option of Magnitude. Upon each
draw down under the equity facility, Magnitude is required to issue warrants to
Torneaux Ltd. Under certain conditions, the amount of shares purchased may be
increased by up to 75%, up to a maximum amount of $7.3 million of common stock
under the equity line.
"We are quite pleased with the agreement with Torneaux Ltd. which provides us
with a simple and attractive method of raising additional capital when we want
it without certain constraints often associated with other methods of
financing," said Steven D. Rudnik, President/CEO, Magnitude Information Systems,
Inc. Proceeds from draw downs under the equity financing agreement will be used
for general corporate purposes. The agreement calls for Magnitude to generally
control the amount and the timing of stock sold.
About Torneaux, Ltd.
Torneaux, Ltd. is a privately managed fund investing primarily in small-cap and
micro-cap growth companies in North America, Europe,and Asia in the Information
Technology, Telecommunications, Internet, and related business sectors.
About Magnitude Information Systems, Inc.
Magnitude Information Systems, Inc. is a leading developer of ergonomic
management solutions for computer users. Magnitude's products help businesses
realize measurable productivity gains and reduced Workers' Compensation and
medical claims costs associated with people working at computers. Magnitude has
offices in California, Florida, New Jersey and Zurich, Switzerland. For more
information, contact Magnitude at 888.786.7774 or visit www.magnitude.com .
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Statements in this press release concerning the future business, operating
results, and financial condition of Magnitude Information Systems, Inc. are
"forward-looking" statements as defined in the Private Securities Litigation
Reform Act of 1995. Such statements are based on Management's current
expectations and are subject to a number of factors and uncertainties.
Information contained in these forward-looking statements is inherently
uncertain and actual performance and results may differ materially.
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