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<td width="54%" align="center" valign="top"><p>Securities and Exchange Commission</p>
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<td width="54%" style="border-top: 0.0133333in solid" align="center" valign="top"><p>Washington, D.C. 20549</p>
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<td width="34%" valign="top"><p>&#160;</p>
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<td width="33%" valign="top"><p>&#160;</p>
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<td width="33%" align="center" valign="top"><p>Form 8-K</p>
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<td width="33%" valign="top"><p>&#160;</p>
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<td width="33%" align="center" valign="top"><p>Current Report</p>
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<td width="33%" valign="top"><p>&#160;</p>
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<td width="33%" valign="top"><p>&#160;</p>
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<td width="34%" valign="top"><p>&#160;</p>
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<td width="12%" valign="top"><p>&#160;</p>
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<td width="77%" align="center" valign="top"><p>Pursuant to Section 13 or 15(d) of the Securities and Exchange
Commission</p>
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<td width="33%" valign="top"><p>&#160;</p>
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<td width="33%" valign="top"><p>&#160;</p>
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<td width="34%" valign="top"><p>&#160;</p>
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<td width="13%" valign="top"><p>&#160;</p>
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<td width="76%" align="center" valign="top"><p>Date of Report (Date of earliest event reported): March 2, 2004.</p>
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<td width="33%" valign="top"><p>&#160;</p>
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<td width="33%" valign="top"><p>&#160;</p>
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<td width="34%" valign="top"><p>&#160;</p>
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<td width="23%" valign="top"><p>&#160;</p>
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<td width="54%" align="center" valign="top"><p>Air-Q Wi-Fi Corporation</p>
</td>
<td width="23%" valign="top"><p>&#160;</p>
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<td width="23%" valign="top"><p>&#160;</p>
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<td width="54%" style="border-top: 0.0133333in solid" align="center" valign="top"><p>(Exact name of registrant as specified in its
charter)</p>
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<td width="33%" valign="top"><p>&#160;</p>
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<td width="34%" valign="top"><p>&#160;</p>
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<td width="27%" align="center" valign="top"><p>Delaware</p>
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<td width="31%" align="center" valign="top"><p>33-19961</p>
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<td width="8%" align="center" valign="top"><p>&#160;</p>
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<td width="26%" align="center" valign="top"><p>01-0623010</p>
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<td width="27%" style="border-top: 0.0133333in solid" align="center" valign="top"><p>(State or other
jurisdiction of
incorporation)</p>
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<td width="31%" style="border-top: 0.0133333in solid" align="center" valign="top"><p>(Commission File No.)</p>
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<td width="26%" style="border-top: 0.0133333in solid" align="center" valign="top"><p>(I.R.S. Employer
Identification No.)</p>
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<td width="33%" valign="top"><p>&#160;</p>
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<td width="34%" valign="top"><p>&#160;</p>
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<td width="8%" valign="top"><p>&#160;</p>
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<td width="85%" align="center" valign="top"><p>5555 Hilton Avenue, Suite 207, Baton Rouge, Louisiana 70808</p>
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<td width="7%" valign="top"><p>&#160;</p>
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<td width="85%" style="border-top: 0.0133333in solid" align="center" valign="top"><p>(Address of principal executive offices, including zip code)</p>
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<td width="33%" valign="top"><p>&#160;</p>
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<td width="33%" valign="top"><p>&#160;</p>
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<td width="34%" valign="top"><p>&#160;</p>
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<td width="8%" valign="top"><p>&#160;</p>
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<td width="85%" align="center" valign="top"><p>Registrant&#8217;s telephone number, including area code: (225) 923-1034</p>
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<td width="33%" valign="top"><p>&#160;</p>
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<td width="33%" valign="top"><p>&#160;</p>
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<td width="34%" valign="top"><p>&#160;</p>
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<td width="100%" valign="top"><p>&lt;PAGE&gt;</p>
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<td width="100%" style="border-top: 0.0266667in solid" align="center" valign="top"><p>Form 8-K</p>
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<td width="100%" style="border-bottom: 0.0266667in solid" align="center" valign="top"><p>Air-Q Wi-Fi Corporation</p>
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<td width="100%" valign="top"><p>&#160;</p>
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<td width="85%" style="background-color: #e5e5e5" valign="top"><p>Item 5. Other Events and Regulation FD Disclosure.</p>
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<td width="69%" style="border-bottom: 0.0133333in solid" valign="top"><p>Sale of Equity Securities</p>
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<td width="100%" valign="top"><p>On March 2, 2004, we entered into a securities purchase agreement with Claymore Asset
Management Ltd., a Turks and Caicos Islands corporation.  Under this agreement, in
consideration of $500,000 in cash, we issued 500,000 shares of our $.001 par value Series A
preferred stock, 250,000 warrants to purchase 250,000 shares of our common stock at an
exercise price of $3.50 per share and 250,000 warrants to purchase 250,000 shares of our
common stock at an exercise price of $4.50 per share.  The shares of Series A preferred stock
are convertible into a total of 100,000 shares of our common stock.  The shares of common
stock underlying the Series A preferred stock and the warrants possesses certain demand
registration rights.</p>
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<td width="8%" valign="top"><p>&#160;</p>
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<td width="54%" style="border-bottom: 0.0133333in solid" valign="top"><p>Description of Series A Preferred Stock</p>
</td>
<td width="38%" valign="top"><p>&#160;</p>
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<td width="8%" valign="top"><p>&#160;</p>
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<td width="92%" valign="top"><p>Pursuant to a Certificate of Designation, Voting Powers, Preferences and Rights of the
Series of the Preferred Stock of Air-Q Wi-fi Corporation to Be Designated Series &#8220;A&#8221;
Preferred Stock, a copy of which is included as Exhibit 3.1 to this Current Report on
Form 8-K and is incorporated herein by this reference, filed by us on March 2, 2004,
we have the authority to issue up to 1,000,000 shares of Series A preferred stock.  The
following is a brief summary of important rights and preferences of our Series A
preferred stock.</p>
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<td width="15%" valign="top"><p>&#160;</p>
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<td width="38%" style="border-bottom: 0.0133333in solid" valign="top"><p>Dividends</p>
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<td width="47%" valign="top"><p>&#160;</p>
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<td width="15%" valign="top"><p>&#160;</p>
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<td width="85%" valign="top"><p>Holders of Series A preferred stock are entitled to receive a cash dividend at the
rate of 6% per annum, payable annually, with cumulative rights.</p>
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<td width="15%" valign="top"><p>&#160;</p>
</td>
<td width="38%" style="border-bottom: 0.0133333in solid" valign="top"><p>Voting Rights</p>
</td>
<td width="47%" valign="top"><p>&#160;</p>
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<td width="15%" valign="top"><p>&#160;</p>
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<td width="85%" valign="top"><p>Each holder of outstanding shares of Series A preferred stock is entitled to the
number of votes equal to the number of whole shares of our common stock into
which the shares of Series A preferred stock held by such holder are then
convertible at each meeting of our shareholders with respect to any and all
matters presented to our shareholders for their action or consideration.</p>
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<td width="15%" valign="top"><p>&#160;</p>
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<td width="85%" valign="top"><p>In addition, until such time as fewer than 25% of the maximum number of
shares of Series A preferred stock which shall ever have been issued by us shall
remain outstanding, we may not, without first obtaining the affirmative vote of
the holders of not less than a majority of the outstanding shares of Series A
preferred stock: (i) amend, alter or repeal any provision of our certificate of
incorporation;  (ii) increase of decrease (other than by redemption or
conversion) the authorized number of shares of Series A preferred stock; (iii)
(1) authorize any shares of capital stock or any bonds, debentures, notes or
other obligations convertible into or exchangeable into for or having rights to
purchase, any shares of our capital stock having any preference or priority as to
the right to receive any dividends or amounts distributable upon a liquidating
event, or having redemption payments superior to, or on a parity with, any such
preference or priority of Series A preferred stock or (2) reclassify any common
stock into shares of our capital stock having any preference or priority as to the
right to receive any dividends or amounts distributable upon a liquidating event,
or have redemption payments superior to, or on parity with, any preference or
priority of Series A preferred stock; or (iv) merge or consolidate into or with
any other corporation or other entity, liquidate, dissolve or wind or sell all or
substantially all of our assets.</p>
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<td width="15%" valign="top"><p>&#160;</p>
</td>
<td width="38%" style="border-bottom: 0.0133333in solid" valign="top"><p>Cumulative Rights</p>
</td>
<td width="47%" valign="top"><p>&#160;</p>
</td>
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<td width="15%" valign="top"><p>&#160;</p>
</td>
<td width="85%" valign="top"><p>As long as any share of our Series A preferred stock is outstanding, no
dividend, whether in cash or property, will be paid or declared, nor any
distribution made, on any of the shares of our common stock, nor any shares of
our common stock purchased, unless and until all dividends on the shares of
Series A preferred stock for all past dividend periods and for the then-current
period shall have been paid.</p>
</td>
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<td width="15%" valign="top"><p>&#160;</p>
</td>
<td width="38%" style="border-bottom: 0.0133333in solid" valign="top"><p>Liquidation Preference</p>
</td>
<td width="47%" valign="top"><p>&#160;</p>
</td>
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<td width="15%" valign="top"><p>&#160;</p>
</td>
<td width="85%" valign="top"><p>In the event of any voluntary or involuntary dissolution, liquidation or winding
up of our affairs, then, before any distribution or payment shall be made to the
holders of the shares of our common stock, the holders of the shares of Series A
preferred stock are entitled to be paid in full an amount equal to $1.00 per
share, together with accrued dividends to such distribution payment date,
whether or not earned or declared.</p>
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<td width="15%" valign="top"><p>&#160;</p>
</td>
<td width="38%" style="border-bottom: 0.0133333in solid" valign="top"><p>Conversion Rights</p>
</td>
<td width="47%" valign="top"><p>&#160;</p>
</td>
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<td width="15%" valign="top"><p>&#160;</p>
</td>
<td width="85%" valign="top"><p>The holder of any shares of our Series A preferred stock shall have the right, at
such holder&#8217;s option, at any time or from time to time following the one
hundred eightieth day from issue, to convert each such share of our Series A
preferred stock into one-fifth (.20) of one share of our common stock.</p>
</td>
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<td width="15%" valign="top"><p>&#160;</p>
</td>
<td width="38%" style="border-bottom: 0.0133333in solid" valign="top"><p>Redemption</p>
</td>
<td width="47%" valign="top"><p>&#160;</p>
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<td width="15%" valign="top"><p>&#160;</p>
</td>
<td width="85%" valign="top"><p>At the option of our board of directors, we may, at any time after one year from
issue, redeem the whole, or any part, of the shares of our Series A preferred
stock outstanding by paying in cash therefor the sum of $2.00 per share, plus all
dividends accrued, unpaid and accumulated thereon.</p>
</td>
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<td width="8%" valign="top"><p>&#160;</p>
</td>
<td width="54%" style="border-bottom: 0.0133333in solid" valign="top"><p>Description of $3.50 Warrants</p>
</td>
<td width="38%" valign="top"><p>&#160;</p>
</td>
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<td width="8%" valign="top"><p>&#160;</p>
</td>
<td width="92%" valign="top"><p>Pursuant to our agreement with Claymore Asset Management, we issued 250,000
warrants to purchase 250,000 shares of our common stock, at an exercise price of
$3.50 per share.  These warrants expire on March 1, 2007.</p>
</td>
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<td width="8%" valign="top"><p>&#160;</p>
</td>
<td width="54%" style="border-bottom: 0.0133333in solid" valign="top"><p>Description of $4.50 Warrants</p>
</td>
<td width="38%" valign="top"><p>&#160;</p>
</td>
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<td width="8%" valign="top"><p>&#160;</p>
</td>
<td width="92%" valign="top"><p>Pursuant to our agreement with Claymore Asset Management, we issued 250,000
warrants to purchase 250,000 shares of our common stock, at an exercise price of
$4.50 per share.  These warrants expire on March 1, 2007.</p>
</td>
</tr>
</table>
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<td width="8%" valign="top"><p>&#160;</p>
</td>
<td width="38%" style="border-bottom: 0.0133333in solid" valign="top"><p>Description of Registration Rights</p>
</td>
<td width="54%" valign="top"><p>&#160;</p>
</td>
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<td width="8%" valign="top"><p>&#160;</p>
</td>
<td width="92%" valign="top"><p>Pursuant to our agreement with Claymore Asset Management, we entered into a
registration rights letter agreement.  Under this registration rights agreement, Claymore
Asset Management may, on one occasion prior to March 1, 2005, the registration of all
of the shares of our common stock underlying the Series A preferred stock and
warrants issued to Claymore Asset Management.  However, Claymore Asset
Management has no right to demand the registration of such shares in our currently
pending registration statement on Form S-1 (SEC File No. 333-109466). </p>
</td>
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<td width="54%" style="border-bottom: 0.0133333in solid" valign="top"><p>Press Release</p>
</td>
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</td>
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<td width="100%" valign="top"><p>On March 3, 2004, we issued the press release reproduced below:</p>
</td>
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<td width="8%" valign="top"><p>&#160;</p>
</td>
<td width="85%" style="border-left: 0.0133333in solid; border-right: 0.0133333in solid; border-top: 0.0133333in solid" valign="top"><p>Air-Q Wi-Fi Secures $2.5 Million Funding Agreement</p>
</td>
<td width="7%" valign="top"><p>&#160;</p>
</td>
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<td width="8%" valign="top"><p>&#160;</p>
</td>
<td width="85%" style="border-left: 0.0133333in solid; border-right: 0.0133333in solid" valign="top"><p>$500,000 Immediate Cash Infusion to Support Hotspot &#8220;Footprint&#8221; Growth</p>
</td>
<td width="7%" valign="top"><p>&#160;</p>
</td>
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<td width="8%" valign="top"><p>&#160;</p>
</td>
<td width="85%" style="border-left: 0.0133333in solid; border-right: 0.0133333in solid" valign="top"><p>Baton Rouge, LA &#8211; March 3, 2004 &#8211; Air-Q Wi-Fi Corporation (OTCBB:
AQWF), a Wi-Fi (wireless fidelity) Internet access provider, announced today
that it had entered into a funding agreement with a private investor.  Under the
funding agreement, Air-Q sold units of preferred stock and warrants for an
immediate cash investment of $500,000.  The warrants, if exercised, would
provide $2 million in cash to Air-Q.  Air-Q intends to file a Current Report on
8-K with respect to this transaction in the near future.</p>
</td>
<td width="7%" valign="top"><p>&#160;</p>
</td>
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<td width="8%" valign="top"><p>&#160;</p>
</td>
<td width="85%" style="border-left: 0.0133333in solid; border-right: 0.0133333in solid" valign="top"><p>About Air-Q Wi-Fi Corporation</p>
</td>
<td width="7%" valign="top"><p>&#160;</p>
</td>
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</table>
<table width="100%" cellpadding="6" cellspacing="0">
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<td width="8%" valign="top"><p>&#160;</p>
</td>
<td width="85%" style="border-left: 0.0133333in solid; border-right: 0.0133333in solid" valign="top"><p>Air-Q Wi-Fi Corporation is a development-stage company that develops and
operates wireless Internet access systems. Its first Wi-Fi Internet access system
is located in Baton Rouge, LA, and its second Wi-Fi system is located in
Phoenix, AZ. Air-Q's "Wi-Fi" (hotspot) Internet access system operates on a
platform comprised of Wi-Fi standard equipment that has been configured in a
proprietary manner. The term "Wi-Fi" (wireless fidelity) refers to an industry
standard for wireless equipment that meets published 802.11(x) standards. Wi-
Fi equipment operates in unlicensed spectra, such as 2.4 and 5.8 Ghz. Air-Q's
business plan focuses on the marketing of its wireless Internet access services
to businesses and residential customers, as well as to visitors to its markets with
Wi-Fi compatible laptop computers and other wireless devices. </p>
</td>
<td width="7%" valign="top"><p>&#160;</p>
</td>
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<td width="8%" valign="top"><p>&#160;</p>
</td>
<td width="85%" style="border-left: 0.0133333in solid; border-right: 0.0133333in solid" valign="top"><p>Forward-Looking Statements</p>
</td>
<td width="7%" valign="top"><p>&#160;</p>
</td>
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<td width="8%" valign="top"><p>&#160;</p>
</td>
<td width="85%" style="border-left: 0.0133333in solid; border-right: 0.0133333in solid" valign="top"><p>Certain statements in these interviews and news releases may constitute
"forward looking" statements within the meaning of Section 21E of the
Securities Exchange Act of 1934. Such forward looking statements involve
risk, uncertainties, and other factors, which may cause the actual results,
performance, or achievement expressed or implied by such forward looking
statements to differ materially from the forward looking statements. Certain
statements contained in the interviews are "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995. Such
statements involve numerous risks and uncertainties, including, but not limited
to, risks and uncertainties pertaining to development of Air-Q&#8217;s products and
services and markets for such products and services, the timing and level of
customer orders, competitive products and service, changes in economic
conditions and other risks and uncertainties. Although Air-Q believes the
statements are reasonable, they can give no assurance that such expectations
will prove correct. Air-Q caution that any forward-looking statements contained
herein are not a guarantee of future performance and that actual results may
differ materially. </p>
</td>
<td width="7%" valign="top"><p>&#160;</p>
</td>
</tr>
</table>
<table width="100%" cellpadding="6" cellspacing="0">
<tr>
<td width="8%" valign="top"><p>&#160;</p>
</td>
<td width="85%" style="border-left: 0.0133333in solid; border-right: 0.0133333in solid" valign="top"><p>Contact: Air-Q Wi-Fi Corporation, Baton Rouge; David Loflin, 225-923-1034;
dloflin@air-q.com</p>
</td>
<td width="7%" valign="top"><p>&#160;</p>
</td>
</tr>
</table>
<table width="100%" cellpadding="6" cellspacing="0">
<tr>
<td width="8%" valign="top"><p>&#160;</p>
</td>
<td width="85%" style="border-left: 0.0133333in solid; border-right: 0.0133333in solid; border-bottom: 0.0133333in solid" align="center" valign="top"><p>* * * * END OF PRESS RELEASE * * * *</p>
</td>
<td width="7%" valign="top"><p>&#160;</p>
</td>
</tr>
</table>
<table width="100%" cellpadding="6" cellspacing="0">
<tr>
<td width="100%" valign="top"><p>&#160;</p>
</td>
</tr>
</table>
<table width="100%" cellpadding="6" cellspacing="0">
<tr>
<td width="85%" style="background-color: #e5e5e5" valign="top"><p>Item 7. Financial Statements and Exhibits.</p>
</td>
<td width="15%" valign="top"><p>&#160;</p>
</td>
</tr>
</table>
<table width="100%" cellpadding="6" cellspacing="0">
<tr>
<td width="8%" align="right" valign="top"><p>(a)</p>
</td>
<td width="92%" valign="top"><p>Exhibits:</p>
</td>
</tr>
</table>
<table width="100%" cellpadding="6" cellspacing="0">
<tr>
<td width="12%" align="center" valign="top"><p>&#160;</p>
</td>
<td width="15%" style="border-bottom: 0.01in solid" align="center" valign="top"><p>Exhibit No.</p>
</td>
<td width="8%" align="center" valign="top"><p>&#160;</p>
</td>
<td width="65%" style="border-bottom: 0.01in solid" align="center" valign="top"><p>Description</p>
</td>
</tr>
</table>
<table width="100%" cellpadding="6" cellspacing="0">
<tr>
<td width="12%" valign="top"><p>&#160;</p>
</td>
<td width="15%" align="center" valign="top"><p>3.1</p>
</td>
<td width="8%" valign="top"><p>&#160;</p>
</td>
<td width="65%" valign="top"><p>Certificate of Designation, Voting Powers, Preferences and
Rights of the Series of the Preferred Stock of Air-Q Wi-fi
Corporation to Be Designated Series &#8220;A&#8221; Preferred Stock.</p>
</td>
</tr>
</table>
<table width="100%" cellpadding="6" cellspacing="0">
<tr>
<td width="12%" valign="top"><p>&#160;</p>
</td>
<td width="15%" align="center" valign="top"><p>10.1</p>
</td>
<td width="8%" valign="top"><p>&#160;</p>
</td>
<td width="65%" valign="top"><p>Securities Purchase Agreement between Registrant and
Claymore Asset Management Ltd., dated as of March 2,
2004.</p>
</td>
</tr>
</table>
<table width="100%" cellpadding="6" cellspacing="0">
<tr>
<td width="12%" valign="top"><p>&#160;</p>
</td>
<td width="15%" align="center" valign="top"><p>10.2</p>
</td>
<td width="8%" valign="top"><p>&#160;</p>
</td>
<td width="65%" valign="top"><p>$3.50 Warrant Agreement between Registrant and Claymore
Asset Management Ltd., dated March 2, 2004.</p>
</td>
</tr>
</table>
<table width="100%" cellpadding="6" cellspacing="0">
<tr>
<td width="12%" valign="top"><p>&#160;</p>
</td>
<td width="15%" align="center" valign="top"><p>10.3</p>
</td>
<td width="8%" valign="top"><p>&#160;</p>
</td>
<td width="65%" valign="top"><p>$4.50 Warrant Agreement between Registrant and Claymore
Asset Management Ltd., dated March 2, 2004.</p>
</td>
</tr>
</table>
<table width="100%" cellpadding="6" cellspacing="0">
<tr>
<td width="12%" valign="top"><p>&#160;</p>
</td>
<td width="15%" align="center" valign="top"><p>10.4</p>
</td>
<td width="8%" valign="top"><p>&#160;</p>
</td>
<td width="65%" valign="top"><p>Registration Rights Letter Agreement between Registrant
and Claymore Asset Management Ltd., dated March 2, 2004.</p>
</td>
</tr>
</table>
<table width="100%" cellpadding="6" cellspacing="0">
<tr>
<td width="100%" valign="top"><p>&#160;</p>
</td>
</tr>
</table>
<table width="100%" cellpadding="6" cellspacing="0">
<tr>
<td width="100%" style="background-color: #e5e5e5; border-top: 0.0266667in solid; border-bottom: 0.0266667in solid" align="center" valign="top"><p>SIGNATURES</p>
</td>
</tr>
</table>
<table width="100%" cellpadding="6" cellspacing="0">
<tr>
<td width="100%" valign="top"><p>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, hereunder duly authorized.</p>
</td>
</tr>
</table>
<table width="100%" cellpadding="6" cellspacing="0">
<tr>
<td width="100%" valign="top"><p>&#160;</p>
</td>
</tr>
</table>
<table width="100%" cellpadding="6" cellspacing="0">
<tr>
<td width="8%" valign="top"><p>&#160;</p>
</td>
<td width="35%" valign="top"><p>Dated: March 3, 2004.</p>
</td>
<td width="57%" valign="top"><p>AIR-Q WI-FI CORPORATION</p>
</td>
</tr>
</table>
<table width="100%" cellpadding="6" cellspacing="0">
<tr>
<td width="42%" valign="top"><p>&#160;</p>
</td>
<td width="6%" valign="top"><p>&#160;</p>
</td>
<td width="40%" valign="top"><p>&#160;</p>
</td>
<td width="12%" valign="top"><p>&#160;</p>
</td>
</tr>
<tr>
<td width="42%" valign="top"><p>&#160;</p>
</td>
<td width="6%" valign="top"><p>By:</p>
</td>
<td width="40%" style="border-bottom: 0.01in solid" valign="top"><p>/s/ DAVID LOFLIN</p>
</td>
<td width="12%" valign="top"><p>&#160;</p>
</td>
</tr>
</table>
<table width="100%" cellpadding="6" cellspacing="0">
<tr>
<td width="50%" valign="top"><p>&#160;</p>
</td>
<td width="21%" valign="top"><p>David Loflin
President</p>
</td>
<td width="29%" valign="top"><p>&#160;</p>
</td>
</tr>
</table>
</body>

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{"company-data": {"conformed-name": "AIR-Q WI-FI CORP", "cik": "0000828940", "assigned-sic": "7374", "irs-number": "010623010", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "033-19961", "film-number": "04646501"}, "business-address": {"street1": "5555 HILTON AVENUE", "street2": "SUITE 207", "city": "BATON ROUGE", "state": "LA", "zip": "70808", "phone": "225-923-1034"}, "mail-address": {"street1": "5555 HILTON AVENUE", "street2": "SUITE 207", "city": "BATON ROUGE", "state": "LA", "zip": "70808"}, "former-company": [{"former-conformed-name": "COVENANT FINANCIAL CORP", "date-changed": "20020507"}, {"former-conformed-name": "HOMEGATE CORP", "date-changed": "20001115"}, {"former-conformed-name": "SPARTAN OIL CORP", "date-changed": "20000309"}]}
Securities and Exchange Commission
Washington, D.C. 20549
Form 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities and Exchange
Commission
Date of Report (Date of earliest event reported): March 2, 2004.
Air-Q Wi-Fi Corporation
(Exact name of registrant as specified in its
charter)
Delaware
33-19961
01-0623010
(State or other
jurisdiction of
incorporation)
(Commission File No.)
(I.R.S. Employer
Identification No.)
5555 Hilton Avenue, Suite 207, Baton Rouge, Louisiana 70808
(Address of principal executive offices, including zip code)
Registrant's telephone number, including area code: (225) 923-1034
<PAGE>
Form 8-K
Air-Q Wi-Fi Corporation
Item 5. Other Events and Regulation FD Disclosure.
Sale of Equity Securities
On March 2, 2004, we entered into a securities purchase agreement with Claymore Asset
Management Ltd., a Turks and Caicos Islands corporation.  Under this agreement, in
consideration of $500,000 in cash, we issued 500,000 shares of our $.001 par value Series A
preferred stock, 250,000 warrants to purchase 250,000 shares of our common stock at an
exercise price of $3.50 per share and 250,000 warrants to purchase 250,000 shares of our
common stock at an exercise price of $4.50 per share.  The shares of Series A preferred stock
are convertible into a total of 100,000 shares of our common stock.  The shares of common
stock underlying the Series A preferred stock and the warrants possesses certain demand
registration rights.
Description of Series A Preferred Stock
Pursuant to a Certificate of Designation, Voting Powers, Preferences and Rights of the
Series of the Preferred Stock of Air-Q Wi-fi Corporation to Be Designated Series "A"
Preferred Stock, a copy of which is included as Exhibit 3.1 to this Current Report on
Form 8-K and is incorporated herein by this reference, filed by us on March 2, 2004,
we have the authority to issue up to 1,000,000 shares of Series A preferred stock.  The
following is a brief summary of important rights and preferences of our Series A
preferred stock.
Dividends
Holders of Series A preferred stock are entitled to receive a cash dividend at the
rate of 6% per annum, payable annually, with cumulative rights.
Voting Rights
Each holder of outstanding shares of Series A preferred stock is entitled to the
number of votes equal to the number of whole shares of our common stock into
which the shares of Series A preferred stock held by such holder are then
convertible at each meeting of our shareholders with respect to any and all
matters presented to our shareholders for their action or consideration.
In addition, until such time as fewer than 25% of the maximum number of
shares of Series A preferred stock which shall ever have been issued by us shall
remain outstanding, we may not, without first obtaining the affirmative vote of
the holders of not less than a majority of the outstanding shares of Series A
preferred stock: (i) amend, alter or repeal any provision of our certificate of
incorporation;  (ii) increase of decrease (other than by redemption or
conversion) the authorized number of shares of Series A preferred stock; (iii)
(1) authorize any shares of capital stock or any bonds, debentures, notes or
other obligations convertible into or exchangeable into for or having rights to
purchase, any shares of our capital stock having any preference or priority as to
the right to receive any dividends or amounts distributable upon a liquidating
event, or having redemption payments superior to, or on a parity with, any such
preference or priority of Series A preferred stock or (2) reclassify any common
stock into shares of our capital stock having any preference or priority as to the
right to receive any dividends or amounts distributable upon a liquidating event,
or have redemption payments superior to, or on parity with, any preference or
priority of Series A preferred stock; or (iv) merge or consolidate into or with
any other corporation or other entity, liquidate, dissolve or wind or sell all or
substantially all of our assets.
Cumulative Rights
As long as any share of our Series A preferred stock is outstanding, no
dividend, whether in cash or property, will be paid or declared, nor any
distribution made, on any of the shares of our common stock, nor any shares of
our common stock purchased, unless and until all dividends on the shares of
Series A preferred stock for all past dividend periods and for the then-current
period shall have been paid.
Liquidation Preference
In the event of any voluntary or involuntary dissolution, liquidation or winding
up of our affairs, then, before any distribution or payment shall be made to the
holders of the shares of our common stock, the holders of the shares of Series A
preferred stock are entitled to be paid in full an amount equal to $1.00 per
share, together with accrued dividends to such distribution payment date,
whether or not earned or declared.
Conversion Rights
The holder of any shares of our Series A preferred stock shall have the right, at
such holder's option, at any time or from time to time following the one
hundred eightieth day from issue, to convert each such share of our Series A
preferred stock into one-fifth (.20) of one share of our common stock.
Redemption
At the option of our board of directors, we may, at any time after one year from
issue, redeem the whole, or any part, of the shares of our Series A preferred
stock outstanding by paying in cash therefor the sum of $2.00 per share, plus all
dividends accrued, unpaid and accumulated thereon.
Description of $3.50 Warrants
Pursuant to our agreement with Claymore Asset Management, we issued 250,000
warrants to purchase 250,000 shares of our common stock, at an exercise price of
$3.50 per share.  These warrants expire on March 1, 2007.
Description of $4.50 Warrants
Pursuant to our agreement with Claymore Asset Management, we issued 250,000
warrants to purchase 250,000 shares of our common stock, at an exercise price of
$4.50 per share.  These warrants expire on March 1, 2007.
Description of Registration Rights
Pursuant to our agreement with Claymore Asset Management, we entered into a
registration rights letter agreement.  Under this registration rights agreement, Claymore
Asset Management may, on one occasion prior to March 1, 2005, the registration of all
of the shares of our common stock underlying the Series A preferred stock and
warrants issued to Claymore Asset Management.  However, Claymore Asset
Management has no right to demand the registration of such shares in our currently
pending registration statement on Form S-1 (SEC File No. 333-109466).
Press Release
On March 3, 2004, we issued the press release reproduced below:
Air-Q Wi-Fi Secures $2.5 Million Funding Agreement
$500,000 Immediate Cash Infusion to Support Hotspot "Footprint" Growth
Baton Rouge, LA – March 3, 2004 – Air-Q Wi-Fi Corporation (OTCBB:
AQWF), a Wi-Fi (wireless fidelity) Internet access provider, announced today
that it had entered into a funding agreement with a private investor.  Under the
funding agreement, Air-Q sold units of preferred stock and warrants for an
immediate cash investment of $500,000.  The warrants, if exercised, would
provide $2 million in cash to Air-Q.  Air-Q intends to file a Current Report on
8-K with respect to this transaction in the near future.
About Air-Q Wi-Fi Corporation
Air-Q Wi-Fi Corporation is a development-stage company that develops and
operates wireless Internet access systems. Its first Wi-Fi Internet access system
is located in Baton Rouge, LA, and its second Wi-Fi system is located in
Phoenix, AZ. Air-Q's "Wi-Fi" (hotspot) Internet access system operates on a
platform comprised of Wi-Fi standard equipment that has been configured in a
proprietary manner. The term "Wi-Fi" (wireless fidelity) refers to an industry
standard for wireless equipment that meets published 802.11(x) standards. Wi-
Fi equipment operates in unlicensed spectra, such as 2.4 and 5.8 Ghz. Air-Q's
business plan focuses on the marketing of its wireless Internet access services
to businesses and residential customers, as well as to visitors to its markets with
Wi-Fi compatible laptop computers and other wireless devices.
Forward-Looking Statements
Certain statements in these interviews and news releases may constitute
"forward looking" statements within the meaning of Section 21E of the
Securities Exchange Act of 1934. Such forward looking statements involve
risk, uncertainties, and other factors, which may cause the actual results,
performance, or achievement expressed or implied by such forward looking
statements to differ materially from the forward looking statements. Certain
statements contained in the interviews are "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995. Such
statements involve numerous risks and uncertainties, including, but not limited
to, risks and uncertainties pertaining to development of Air-Q's products and
services and markets for such products and services, the timing and level of
customer orders, competitive products and service, changes in economic
conditions and other risks and uncertainties. Although Air-Q believes the
statements are reasonable, they can give no assurance that such expectations
will prove correct. Air-Q caution that any forward-looking statements contained
herein are not a guarantee of future performance and that actual results may
differ materially.
Contact: Air-Q Wi-Fi Corporation, Baton Rouge; David Loflin, 225-923-1034;
dloflin@air-q.com
* * * * END OF PRESS RELEASE * * * *
Item 7. Financial Statements and Exhibits.
(a)
Exhibits:
Exhibit No.
Description
3.1
Certificate of Designation, Voting Powers, Preferences and
Rights of the Series of the Preferred Stock of Air-Q Wi-fi
Corporation to Be Designated Series "A" Preferred Stock.
10.1
Securities Purchase Agreement between Registrant and
Claymore Asset Management Ltd., dated as of March 2,
2004.
10.2
$3.50 Warrant Agreement between Registrant and Claymore
Asset Management Ltd., dated March 2, 2004.
10.3
$4.50 Warrant Agreement between Registrant and Claymore
Asset Management Ltd., dated March 2, 2004.
10.4
Registration Rights Letter Agreement between Registrant
and Claymore Asset Management Ltd., dated March 2, 2004.
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, hereunder duly authorized.
Dated: March 3, 2004.
AIR-Q WI-FI CORPORATION
By:
/s/ DAVID LOFLIN
David Loflin
President