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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 11, 2001
SPARTA SURGICAL CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 1-11047 22-2870438
(State or other juris- (Commission (I.R.S. Employer ID
diction of incorporation) File Number) Number)
Olsen Centre
2100 Meridian Park Blvd., Concord, CA 94520
(Address of principal executive offices)
Registrant's telephone number, including area code (925) 417-8812
not applicable
(Former name or former address, if changed since last report)
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SPARTA SURGICAL CORPORATION
Form 8-K
ITEM 5 - OTHER EVENTS
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On October 10, 2001, Sparta Olsen Electrosurgical, Inc.("Sparta Olsen") a
wholly-owned subsidiary of Sparta Surgical Corporation completed the sale of
substantially all the assets of Sparta Olsen business (the "Sale"), including
inventory, machinery and equipment and all intangible assets (excluding cash and
accounts receivable) for the amount of $1,815,528 in cash to Kentucky Packaging
Service LP, DBA Q2 Medical ("Q2 Medical") and at the same time entered into a
Transition Agreement whereby Q2 Medical agreed to pay Sparta Olsen approximately
$70,830 to assist in the transfer of the business.
In connection with the Sale, Sparta Olsen paid to Banc of America ("BofA") all
amounts required pursuant to a Settlement Agreement between Sparta and BofA, and
BofA released all security interests in all of our assets, and also released the
personal guarantee of Thomas F. Reiner, our Chairman, President and CEO. The
Settlement Agreement also contained customary releases and forever discharges
each other from any and all claims and demands of every kind and nature. In
addition, BofA and Sparta Olsen dismissed lawsuits they have initiated against
one another.
SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
SPARTA SURGICAL CORPORATION
Date: October 11, 2001
By /s/ Thomas F. Reiner
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Thomas F. Reiner,
Chairman of the Board,
President and Chief Executive Officer