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 7, 2005
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INNOVA HOLDINGS, INC.
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(Exact name of Registrant as specified in its charter)
Delaware 000-33231 95-4868120
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(State or other jurisdiction (Commission File number) (IRS Employer Identification No.)
of incorporation or organization)
17105 San Carlos Boulevard, Suite A6151, Fort Myers, Florida 33931
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(Address of principal executive offices) (Zip Code)
(239) 466-0488
(Registrant's Telephone Number, Including Area Code)
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(Former Address If Changed since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation for the registrant under any of the
following provisions (see General Instruction A.2. below):
|_| Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
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SECTION 2-FINANCIAL INFORMATION
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant
Innova Holdings, Inc. (the "Company") entered into short-term debt
obligations other than in the ordinary course of business. All of the short-term
debt bears interest at the rate of 10% per annum. The following table sets for
the names of the lenders, the amount of the loans, the dates of the loans and
the due date of the loans:
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Lender Amount of Loan Date of Loan Due Date
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Eugene Gartlan $40,000 September 19, 2005 December 19, 2005
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Jerry Horne $50,000 September 22, 2005 October 22, 2005
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James Marks $30,000 September 22, 2005 October 22, 2005
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Eugene Gartlan $5,000 October 5, 2005 January 5, 2006
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Rick Wynns $30,000 October 5, 2005 April 5, 2006
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Rick Wynns $30,000 October 17, 2005 April 17, 2006
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All of the lenders are shareholders of the Company. Mr. Gartlan is also
the Chief Financial Officer of the Company.
On October 7, 2005, the Company into a Securities Purchase Agreement with
Cornell Capital Partners, LP ("Cornell Capital"). Pursuant to this Agreement,
the Company sold a Convertible Debenture in the principal amount of $55,000 to
Cornell Capital. The Convertible Debenture bears interest at the rate of 12% per
annum and is due on April 7, 2006. The Company will pay directly to Cornell
Capital all revenues it receives until the principal amount and all accrued
interest on the Convertible Debenture has been paid in full. The principal of
the Convertible Debenture is convertible into common stock of the Company at a
price of $.03 per share (the "Conversion Shares"). In the event of default by
the Company, the principal of the Convertible Debenture is convertible into
Conversion Shares at a price of $.005 per share. The Company granted demand
registration rights to Cornell Capital for the Conversion Shares. The
Convertible Debenture is secured by a second lien on all of the assets of the
Company.
SECTION 9-FINANCIAL STATEMENTS AND EXHIBITS
Item 9.01 Financial Statements and Exhibits.
(c) Exhibits.
10.1 Securities Purchase Agreement with Cornell Capital Partners, LP dated
October 7, 2005
10.2 Registration Rights with Cornell Capital Partners, LP dated October 7,
2005
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10.3 Convertible Debenture issued to Cornell Capital Partners, LP dated October
7, 2005
10.4 Security Agreement with Cornell Capital Partners, LP dated October 7, 2005
10.5 Escrow Agreement with David Gonzalez and Cornell Capital Partners, LP
dated October 7, 2005
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SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
INNOVA HOLDINGS, INC.
Date: October 19, 2005 By: /s/ Walter K. Weisel
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Walter K. Weisel
Chairman and Chief Executive Officer
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