UNITED STATES
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): November 7, 2006
PATIENT SAFETY TECHNOLOGIES, INC.
(Exact name of registrant as specified in its charter)
Delaware 333-124594 13-3419202
(State or Other Jurisdiction (Commission File (I.R.S. Employer
of Incorporation) Number) Identification Number)
1800 Century Park East, Ste. 200, Los Angeles, CA 90067
(Address of principal executive offices) (zip code)
(310) 895-7750
(Registrant's telephone number, including area code)
Copies to:
Marc J. Ross, Esq.
Sichenzia Ross Friedman Ference LLP
1065 Avenue of the Americas
New York, New York 10018
Phone: (212) 930-9700
Fax: (212) 930-9725
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of 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))
ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.
On November 7, 2006, the U.S. Bankruptcy Court, for the District of
Delaware, approved the Settlement Agreement previously entered into in August of
this year by and among Patient Safety Technologies, Inc. (the "Company") and
Winstar Global Media, Inc., Winstar Radio Networks, LLC, and Winstar Radio
Productions, LLC. The lawsuit, wherein the Company was a defendant, concerned a
dispute over payment of a $1,000,000 promissory note. Under the settlement, the
Company is obligated to pay the Bankruptcy Trustee and her attorneys $750,000 by
July 2, 2007. The settlement is payable over a course of milestone payments, the
first $150,000 of which was paid on September 11, 2006 and is being held in an
escrow account. Now that the court approved the settlement, the first $150,000
will be paid over to the Trustee and her attorneys. The remaining milestone
payments are due by January 1, 2007 ($150,000), April 1, 2007 (another $150,000)
and July 2, 2007 ($300,000). Pursuant to the settlement, any equity raises
undertaken by the Company between now and the payment deadline will first be
deposited in the Company's escrow account with its outside counsel; 25% of each
closing in the equity raise must then be paid over to the Trustee and her
attorneys and applied to the settlement. If the entire $750,000 is not paid on
or before July 2, 2007, the Company shall owe a total of $1,200,000 pursuant to
the terms of a Judgment Promissory Note entered into concurrent with the
Settlement Agreement. The Company fully intends to pay the settlement on time.
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SIGNATURES
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.
PATIENT SAFETY TECHNOLOGIES, INC.
Dated: November 10, 2006 By: /s/ LYNNE SILVERSTEIN
---------------------------------
Name: Lynne Silverstein
Title: President
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