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
June 2, 2003
Date of Report
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(Date of Earliest Event Reported)
QUINTEK TECHNOLOGIES, INC.
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(Exact name of Registrant as Specified in its Charter)
537 CONSTITUTION AVENUE
SUITE B
CAMARILLO, CALIFORNI 93012
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(Address of Principal Executive Offices)
(805) 383-3914
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(Registrant's Telephone Number)
CALIFORNIA 0-29719 77-0505346
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(State or other jurisdiction (Commission File (IRS Employer
of incorporation) Number) Identification No.)
ITEM 5. OTHER EVENTS AND REGULATION FD DISCLOSURE.
On June 2, 2003, Kazi Management VI, LLC ("KMVI") and Quintek
Technologies, Inc. ("Quintek") entered into a Purchase Financing Agreement
("Agreement"). KMVI agreed to purchase equipment purchase orders ("Qualified
Purchase Orders", as hereinafter defined) in varying amounts from Quintek from
time to time during the period starting with the date of the Agreement up to but
not including June 2, 2005 ("Termination Date") in an aggregate principal amount
up to but not to exceed a total of $4,800,000 over the two year term of the
Agreement. KMVI agrees to purchase up to Two Hundred Thousand Dollars ($200,000)
of Qualified Purchase Orders in any given month throughout the two (2) year term
of the Agreement. KMVI will not be required to hold more than Two Hundred
Thousand Dollars of outstanding Qualified Purchase Orders at any time.
A purchase order is a Qualified Purchase Order if it is received from a
profitable end user customer corporation (or other entity) of Quintek with over
Ten Million Dollars ($10,000,000) in annual revenues or a profitable dealer
customer with over Three Million Dollars ($3,000,000) in annual revenues.
Perfected Purchase Orders (defined as Qualified Purchase Orders
delivered to and accepted by customer) shall be purchased by the KMVI at three
percent (3%) discount to KMVI, or ninety seven percent (97%) of face value.
Non-Perfected Purchase Orders (defined as Qualified Purchase Orders not yet
shipped to customers) will be purchased by KMVI at ten percent (10%) discount to
KMVI, or ninety percent (90%) of face value.
KMVI agrees to pay Quintek the purchase order sale price as determined
by
paragraph 1.03 above, and Quintek shall have received said funds in its account,
within three (3) days of Quintek presenting a Qualified Purchase Order to KMVI
or KMVI 's designated representative.
KMVI shall have the right to reject Qualified Purchase Orders presented
by Quintek on the following grounds: KMVI has good reason to doubt Qualified
Purchase Order status or financial solvency of customer; poor payment history of
customer; or KMVI has inventory of more than Two Hundred Thousand Dollars
($200,000) of outstanding and unpaid purchase orders from Quintek's customers.
In the event of rejection of a Qualified Purchase Order, KMVI will notify
Quintek in writing of said rejection and reason(s) therefore within three (3)
days of initial presentation of a Qualified Purchase Order by Quintek.
Quintek will pay KMVI a late payment fee as follows: (a) Perfected
Purchase Orders not paid by customer to KMVI within 30 days of purchase: Quintek
will pay KMVI a late payment fee equal to Three Percent (3%) per month of the
discounted purchase order sale price paid by KMVI. (b)Non-Perfected Purchase
Orders not paid by customer to KMVI within 60 days of purchase: Quintek will pay
KMVI a late payment fee equal to Five Percent (5%) per month of the discounted
purchase order sale price paid by KMVI. Late payment fees may be paid in cash or
Quintek's common stock at the option of the Investor. If paid in common stock,
the price of the common stock will be based on a fifty percent (50%) discount to
the closing bid price of the common stock on the OTC Bulletin Board at either
time of payment, at the option of the investor.
As an inducement for executing the Agreement Quintek shall issue to the
KMVI a warrant to purchase One Million Five Hundred Thousand (1,500,000) shares
of Quintek common stock at the average closing price of Quintek common stock on
the OTC Bulletin Board for the 90 days prior to the execution of this Agreement.
The Warrant shall be exercisable for 5 years and shall have standard piggyback
registration rights.
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KMVI will receive additional warrants ("Additional Warrants") to
purchase two (2) shares of common stock of the Seller for each dollar of
Qualified Purchase Orders purchased and paid for by KMVI. Calculation of the
amount of Additional Warrants due KMVI shall be based on the price paid for
Purchase Orders by KMVI. Additional Warrants will be exercisable for five (5)
years at an exercise price equal to the average closing price of Quintek's
common stock on the OTC Bulletin Board for the 90 days prior to the closing of
the Purchase Order transaction they represent or a fifty percent (50%) discount
to the closing price of Quintek's common stock on the OTC Bulletin Board at the
day of the closing of the transaction they represent, at the option of KMVI.
Additional Warrants shall have standard piggyback registration.
If KMVI, without adequate reason, does not fund Qualified Purchase
Orders and/or does not timely respond to Quintek's request for funding, Quintek
shall have the right to cancel the Warrant described above given to KMVI as an
inducement for executing this Agreement.
KMVI shall have the right to one (1) demand registration of the common
stock underlying the Warrant and Additional Warrants accruing to KMVI pursuant
to this Agreement after KMVI has purchased and paid Quintek for $2,400,000 of
Qualified Purchase Orders from Quintek. KMVI shall have the right to an
additional one (1) demand registration of the common stock underlying the
Warrant and Additional Warrants accruing to KMVI pursuant to the Agreement after
KMVI has purchased and paid Quintek for an additional $2,400,000 (for a total of
$4,800,000) of Qualified Purchase Orders from Quintek.
Item 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
Exhibit 10.1 Purchase Order Financing Agreement dated June
2, 2003 between Kazi Management VI, LLC and Quintek
Technologies, Inc.
Exhibit 99.1 Press Release Dated June 10, 2003.
THE REGISTRANT UNDERTAKES TO FURNISH SUPPLEMENTALLY TO THE COMMISSION UPON
REQUEST A COPY OF ANY EXHIBIT OR SCHEDULE TO THE PURCHASE ORDER FINANCING
AGREEMENT.
SIGNATURES
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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.
QUINTEK TECHNOLOGIES, INC.
BY: /s/ ROBERT STEELE, PRESIDENT
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DATE: June 30, 2003
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