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<TITLE>Form 8-K</TITLE>
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<P style="font-size: 14pt" align="center"><B>UNITED STATES<BR>
SECURITIES AND
EXCHANGE COMMISSION<BR>
<FONT style="font-size: 12pt">Washington, D.C. 20549
</FONT></B>

<P style="font-size: 18pt" align="center"><B>FORM 8-K</B>

<P style="font-size: 12pt" align="center"><B>CURRENT REPORT<BR>
Pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934</B>

<P style="font-size: 10pt" align="center"><B>Date of Report (Date of earliest
event reported): March 6, 2009</B>

<P style="font-size: 24pt" align="center"><B>KONA GRILL, INC.<BR>
</B><FONT
style="font-size: 10pt">(Exact name of registrant as specified in its charter)
</FONT>
<TABLE style="font-size: 10pt; text-align: center" cellspacing="0"
cellpadding="0" width="100%" border="0">

 <TR>
  <TD width="32%">&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="33%">&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="32%">&nbsp;</TD>
 </TR>
 <TR valign="bottom">
  <TD style="border-bottom: #000000 1px solid"><B>Delaware</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid"><B>001-34082</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid"><B>20-0216690</B></TD>
 </TR>
 <TR valign="top">
  <TD>(State or other Jurisdiction of Incorporation)</TD>
  <TD>&nbsp;</TD>
  <TD>(Commission File Number)</TD>
  <TD>&nbsp;</TD>
  <TD>(IRS Employer Identification No.)</TD>
 </TR>

</TABLE>
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cellpadding="0" width="100%" border="0">

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  <TD width="49%">&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="49%">&nbsp;</TD>
 </TR>
 <TR valign="bottom">
  <TD style="border-bottom: #000000 1px solid"><B>7150 E. Camelback Road, Suite
220<BR>
Scottsdale, Arizona<BR>
<BR>
</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid"><B>85251</B></TD>
 </TR>
 <TR valign="top">
  <TD>(Address of Principal Executive Offices)</TD>
  <TD>&nbsp;</TD>
  <TD>(Zip Code)</TD>
 </TR>

</TABLE>


<P style="font-size: 10pt" align="center">Registrant&#8217;s telephone number,
including area code: <B>(480) 922-8100</B>
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cellpadding="0" width="30%" border="0">

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  <TD width="100%">&nbsp;</TD>
 </TR>
 <TR>
  <TD style="border-bottom: #000000 1px solid" nowrap><B>&nbsp;</B></TD>
 </TR>
 <TR>
  <TD nowrap>(Former name or former address if changed since last report.)</TD>
 </TR>

</TABLE>


<P style="font-size: 10pt" align="left">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:

<P style="font-size: 10pt" align="left"><FONT face="Wingdings">o</FONT> Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)<BR>
<BR>
<FONT face="Wingdings">o</FONT> Soliciting material pursuant
to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<BR>
<BR>
<FONT
face="Wingdings">o</FONT> Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<BR>
<BR>
<FONT
face="Wingdings">o</FONT> Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<BR>


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</DIV>

<P style="font-size: 10pt" align="center">&nbsp;

<P style="display: none; font-size: 10pt" align="center">1
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<P style="font-size: 10pt" align="left"><B>Item&nbsp;1.01 Entry into a Material
Definitive Agreement</B>

<P style="font-size: 10pt; text-indent: 4%" align="left">Reference is made to
the Note and Warrant Purchase Agreement entered into by Kona Grill, Inc. (the
&#8220;Company&#8221;) and further described under Item&nbsp;2.03 of this
Current Report on Form 8-K (the &#8220;Agreement&#8221;). The disclosure
contained in Item&nbsp;2.03 is hereby incorporated by reference in its entirety
into this Item&nbsp;1.01.

<P>
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 <TR
style="font-size: 10pt; background: none transparent scroll repeat 0% 0%; color: #000000"
valign="top">
  <TD nowrap align="left" width="3%"><B>Item&nbsp;2.03</B></TD>
  <TD width="1%">&nbsp;</TD>
  <TD><B>Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.</B></TD>
 </TR>

</TABLE>


<P style="font-size: 10pt; text-indent: 4%" align="left">On March&nbsp;6, 2009,
the Company entered into the Agreement with certain accredited investors
whereby the Company sold $1.2&nbsp;million aggregate principal amount of 10%
unsecured subordinated notes (&#8220;Notes&#8221;) and warrants
(&#8220;Warrants&#8221;) to purchase shares of the Company&#8217;s common stock
(the &#8220;Common Stock&#8221;). The Notes were sold to accredited investors
pursuant to an exemption from registration under the Securities Act of 1933, as
amended (the &#8220;Securities Act&#8221;). The Notes, the Warrants, and the
securities issuable upon exercise of the Warrants have not been registered
under the Securities Act, and may not be sold, offered for sale, assigned,
transferred, or otherwise disposed of, absent registration or an applicable
exemption from registration under the Securities Act.

<P style="font-size: 10pt; text-indent: 4%" align="left">The principal and
accrued interest outstanding under the Notes shall be due and payable upon the
earlier of (i) September&nbsp;2, 2009 or (ii)&nbsp;the closing of any offering
of equity securities by the Company generating gross proceeds to the Company of
at least $2.5&nbsp;million. Interest on the Notes is payable on the last day of
each month, commencing on April&nbsp;30, 2009. The Company may prepay the
principal and accrued interest outstanding under the Notes at anytime without
penalty. The interest rate on the Notes will increase to 16% if the Notes are
outstanding after maturity or upon any other event of default as specified in
the Agreement.

<P style="font-size: 10pt; text-indent: 4%" align="left">For each $100,000
issued in Notes, the Company issued to the noteholder three-year warrants to
purchase 10,000 shares of the Company&#8217;s common stock at an aggregate
exercise price per share of $2.29, which was equal to 120% of the five-day
average of the closing price of the Company&#8217;s common stock during the
five trading days prior to the date of issuance.

<P style="font-size: 10pt; text-indent: 4%" align="left">The Company intends to
use the net proceeds from the offering to supplement the Company&#8217;s
operating cash flows and fund capital expenditure requirements.

<P style="font-size: 10pt; text-indent: 4%" align="left">As part of the
Agreement, as soon as reasonably practicable after filing with the SEC of the
Company&#8217;s annual report on Form 10-K for the year ended December&nbsp;31,
2008, the Company will file with the SEC a registration statement to commence a
rights offering with targeted gross proceeds to the Company of at least
$2.5&nbsp;million (the &#8220;Rights Offering&#8221;) pursuant to which each
stockholder of the Company will have the right to purchase, at a per share
subscription price to be determined by the Company&#8217;s Board of Directors
or a committee thereof (which subscription price shall reflect a discount to
the market price of the Company&#8217;s Common Stock on the date of
determination of such price by the Company&#8217;s Board of Directors or a
committee thereof), a number of shares of Common Stock for each share of Common
Stock held as of the record date for the Rights Offering. The terms of the
Rights Offering shall provide that any shares of the Company&#8217;s Common
Stock that are not subscribed for in the Rights Offering shall be offered to
the investors of the Notes on a pro rata basis based on the aggregate principal
amount of Notes outstanding and at the same subscription price as offered to
the existing stockholders in the Rights Offering.

<P style="font-size: 10pt; text-indent: 4%" align="center">&nbsp;

<P style="display: none; font-size: 10pt" align="center">2
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<P style="font-size: 10pt; text-indent: 4%" align="left">The Company issued the
Notes and Warrants described above to the investors in reliance upon
Section&nbsp;4(2) of the Securities Act of 1933 as a transaction by an issuer
not involving a public offering. The Notes, Warrants, and shares issued upon
exercise of the Warrants will bear a restrictive legend permitting the transfer
only in compliance with applicable securities laws. The investors in the
private offering represented to the Company their intention to acquire the
securities for investment purposes only and not with a view to or for sale in
connection with any distribution thereof. All investors had adequate access,
through reports filed by the Company with the SEC or through other access to
information provided by the Company, to information about the Company.

<P style="font-size: 10pt; text-indent: 4%" align="left">The description of the
material terms of the Agreement, attached hereto as Exhibit&nbsp;10.21, does
not purport to be complete and is qualified in its entirety by reference to
such exhibit.

<P style="font-size: 10pt; text-indent: 4%" align="left">The Company issued a
press release dated March&nbsp;6, 2009 announcing the transaction covered by
the Agreement. A copy of the release is attached as Exhibit&nbsp;99.1.

<P style="font-size: 10pt" align="left"><B>Item&nbsp;3.02 Unregistered Sales of
Equity Securities</B>

<P style="font-size: 10pt; text-indent: 4%" align="left">The disclosure
contained in Item&nbsp;2.03 is hereby incorporated by reference into this
Item&nbsp;3.02.

<P style="font-size: 10pt" align="left"><B>Item&nbsp;9.01. Financial Statements
and Exhibits.</B>

<P style="font-size: 10pt" align="left">(d)&nbsp;<I>Exhibits.</I>
<DIV align="center">
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border="0">
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  <TD width="8%">&nbsp;</TD>
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  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">Exhibit<BR>
Number </DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left"><BR>
Description</TD>
 </TR>
 <TR style="font-size: 1px">
  <TD style="border-top: #000000 1px solid" valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">&nbsp;</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD style="border-top: #000000 1px solid" valign="top"
align="left">&nbsp;</TD>
 </TR>

 <TR valign="top">
  <TD align="left">10.21</TD>
  <TD>&nbsp;</TD>
  <TD align="left">Note and Warrant Purchase Agreement, dated March&nbsp;6, 2009, among Kona
Grill, Inc. and the investor parties thereto.</TD>
 </TR>

 <TR valign="top">
  <TD align="left">99.1</TD>
  <TD>&nbsp;</TD>
  <TD align="left">Press release dated March&nbsp;6, 2009 entitled &#8220;Kona Grill
Announces Closing of $1.2 Million Financing&#8221;</TD>
 </TR>

</TABLE>
</DIV>

<P style="font-size: 10pt" align="center"><B>SIGNATURES</B>

<P style="font-size: 10pt; text-indent: 4%" align="left">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.


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<TR valign="bottom">
  <TD valign="top">&nbsp;</TD>
  <TD align="left" colspan="2">Kona Grill, Inc.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
  <TD valign="top">Date: March&nbsp;9, 2009</TD>
  <TD valign="top" align="left">By: </TD>
  <TD valign="top" align="left" style="border-bottom: 1px solid #000000">/s/ Mark S. Robinow</TD>
 </TR>

 <TR valign="bottom">
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">Mark S. Robinow<BR>
Executive Vice President, Chief Financial Officer, and Secretary</TD>
 </TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P style="font-size: 10pt" align="center">&nbsp;

<P style="font-size: 10pt" align="center">2

<P style="font-size: 10pt" align="center">&nbsp;

<P style="display: none; font-size: 10pt" align="center">3
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<DIV style="margin-left: 0.25in; width: 7.2in; font-family: 'Times New Roman',Times,serif">

<P style="font-size: 10pt" align="center"><B>EXHIBIT INDEX</B>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" cellpadding="0" width="100%" border="0">
<!-- Begin Table Head -->

 <TR valign="bottom">
  <TD width="8%">&nbsp;</TD>
  <TD width="5%">&nbsp;</TD>
  <TD width="87%">&nbsp;</TD>
 </TR>
<!-- End Table Head -->

<!-- Begin Table Body -->
 <TR valign="bottom">
  <TD valign="top" align="left" style="border-bottom: #000000 1px solid">Exhibit<BR>
Number</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left" style="border-bottom: #000000 1px solid"><BR>
Description</TD>
 </TR>

 <TR valign="top">
  <TD align="left">10.21</TD>
  <TD>&nbsp;</TD>
  <TD align="left">Note and Warrant Purchase Agreement, dated March&nbsp;6, 2009, among Kona
Grill, Inc. and the investor parties thereto.</TD>
 </TR>

 <TR valign="top">
  <TD align="left">99.1</TD>
  <TD>&nbsp;</TD>
  <TD align="left">Press release dated March&nbsp;6, 2009 entitled &#8220;Kona Grill
Announces Closing of $1.2 Million Financing&#8221;</TD>
 </TR>

</TABLE>
</div>


<P style="font-size: 10pt" align="center">&nbsp;

<P style="display: none; font-size: 10pt" align="center">4
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</HTML>
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{"company-data": {"conformed-name": "KONA GRILL INC", "cik": "0001265572", "assigned-sic": "5812", "irs-number": "200216690", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-34082", "film-number": "09666473"}, "business-address": {"street1": "7150 EAST CAMELBACK ROAD", "street2": "SUITE 220", "city": "SCOTTSDALE", "state": "AZ", "zip": "85251", "phone": "4809228100"}, "mail-address": {"street1": "7150 EAST CAMELBACK ROAD", "street2": "SUITE 220", "city": "SCOTTSDALE", "state": "AZ", "zip": "85251"}}
Form 8-K
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): March 6, 2009
KONA GRILL, INC.
(Exact name of registrant as specified in its charter)
Delaware
001-34082
20-0216690
(State or other Jurisdiction of Incorporation)
(Commission File Number)
(IRS Employer Identification No.)
7150 E. Camelback Road, Suite
220
Scottsdale, Arizona
85251
(Address of Principal Executive Offices)
(Zip Code)
Registrant's telephone number,
including area code:
(480) 922-8100
(Former name or 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 of
the registrant under any of the following provisions:
o
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o
Soliciting material pursuant
to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
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
Reference is made to
the Note and Warrant Purchase Agreement entered into by Kona Grill, Inc. (the
"Company") and further described under Item 2.03 of this
Current Report on Form 8-K (the "Agreement"). The disclosure
contained in Item 2.03 is hereby incorporated by reference in its entirety
into this Item 1.01.
Item 2.03
Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
On March 6, 2009,
the Company entered into the Agreement with certain accredited investors
whereby the Company sold $1.2 million aggregate principal amount of 10%
unsecured subordinated notes ("Notes") and warrants
("Warrants") to purchase shares of the Company's common stock
(the "Common Stock"). The Notes were sold to accredited investors
pursuant to an exemption from registration under the Securities Act of 1933, as
amended (the "Securities Act"). The Notes, the Warrants, and the
securities issuable upon exercise of the Warrants have not been registered
under the Securities Act, and may not be sold, offered for sale, assigned,
transferred, or otherwise disposed of, absent registration or an applicable
exemption from registration under the Securities Act.
The principal and
accrued interest outstanding under the Notes shall be due and payable upon the
earlier of (i) September 2, 2009 or (ii) the closing of any offering
of equity securities by the Company generating gross proceeds to the Company of
at least $2.5 million. Interest on the Notes is payable on the last day of
each month, commencing on April 30, 2009. The Company may prepay the
principal and accrued interest outstanding under the Notes at anytime without
penalty. The interest rate on the Notes will increase to 16% if the Notes are
outstanding after maturity or upon any other event of default as specified in
the Agreement.
For each $100,000
issued in Notes, the Company issued to the noteholder three-year warrants to
purchase 10,000 shares of the Company's common stock at an aggregate
exercise price per share of $2.29, which was equal to 120% of the five-day
average of the closing price of the Company's common stock during the
five trading days prior to the date of issuance.
The Company intends to
use the net proceeds from the offering to supplement the Company's
operating cash flows and fund capital expenditure requirements.
As part of the
Agreement, as soon as reasonably practicable after filing with the SEC of the
Company's annual report on Form 10-K for the year ended December 31,
2008, the Company will file with the SEC a registration statement to commence a
rights offering with targeted gross proceeds to the Company of at least
$2.5 million (the "Rights Offering") pursuant to which each
stockholder of the Company will have the right to purchase, at a per share
subscription price to be determined by the Company's Board of Directors
or a committee thereof (which subscription price shall reflect a discount to
the market price of the Company's Common Stock on the date of
determination of such price by the Company's Board of Directors or a
committee thereof), a number of shares of Common Stock for each share of Common
Stock held as of the record date for the Rights Offering. The terms of the
Rights Offering shall provide that any shares of the Company's Common
Stock that are not subscribed for in the Rights Offering shall be offered to
the investors of the Notes on a pro rata basis based on the aggregate principal
amount of Notes outstanding and at the same subscription price as offered to
the existing stockholders in the Rights Offering.
The Company issued the
Notes and Warrants described above to the investors in reliance upon
Section 4(2) of the Securities Act of 1933 as a transaction by an issuer
not involving a public offering. The Notes, Warrants, and shares issued upon
exercise of the Warrants will bear a restrictive legend permitting the transfer
only in compliance with applicable securities laws. The investors in the
private offering represented to the Company their intention to acquire the
securities for investment purposes only and not with a view to or for sale in
connection with any distribution thereof. All investors had adequate access,
through reports filed by the Company with the SEC or through other access to
information provided by the Company, to information about the Company.
The description of the
material terms of the Agreement, attached hereto as Exhibit 10.21, does
not purport to be complete and is qualified in its entirety by reference to
such exhibit.
The Company issued a
press release dated March 6, 2009 announcing the transaction covered by
the Agreement. A copy of the release is attached as Exhibit 99.1.
Item 3.02 Unregistered Sales of
Equity Securities
The disclosure
contained in Item 2.03 is hereby incorporated by reference into this
Item 3.02.
Item 9.01. Financial Statements
and Exhibits.
(d)
Exhibits.
Exhibit
Number
Description
10.21
Note and Warrant Purchase Agreement, dated March 6, 2009, among Kona
Grill, Inc. and the investor parties thereto.
99.1
Press release dated March 6, 2009 entitled "Kona Grill
Announces Closing of $1.2 Million Financing"
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 hereunto duly
authorized.
Kona Grill, Inc.
Date: March 9, 2009
By:
/s/ Mark S. Robinow
Mark S. Robinow
Executive Vice President, Chief Financial Officer, and Secretary
2
EXHIBIT INDEX
Exhibit
Number
Description
10.21
Note and Warrant Purchase Agreement, dated March 6, 2009, among Kona
Grill, Inc. and the investor parties thereto.
99.1
Press release dated March 6, 2009 entitled "Kona Grill
Announces Closing of $1.2 Million Financing"