<html>
<head><title>
Prepared and filed by St Ives Financial
</title>
</head>
<body bgcolor="#FFFFFF"> <page>
<p align="center"><font size="2" face="serif">SECURITIES AND EXCHANGE COMMISSION</font><br>
<font size="2" face="serif">Washington, D.C. 20549</font></p>
<p align="center"><font size="2" face="serif">&#150;&#150;&#150;&#150;&#150;&#150;&#150;&#150;&#150;&#150;&#150;&#150;</font></p>
<p align="center"><font size="2" face="serif">FORM 8-K</font></p>
<p align="center"><font size="2" face="serif">CURRENT REPORT PURSUANT TO SECTION
    13 OR 15(D) OF</font><br>
<font size="2" face="serif">THE SECURITIES EXCHANGE ACT OF 1934</font></p>
<p align="center"><font size="2" face="serif">Date of Earliest Event Reported</font><br>
<font size="2" face="serif">July 31, 2006</font></p>
<p align="center"><font size="2" face="serif">Environmental Tectonics Corporation</font><br>
<font size="2" face="serif">(Exact name of registrant as specified in its charter)</font></p>
<p align="center"><font size="2" face="serif">Pennsylvania</font><br>
<font size="2" face="serif">(State or other jurisdiction of incorporation of organization)</font></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="center" valign="middle">
    <td width="50%"><font size="2" face="serif">1-10655</font></td>
    <td><font size="2" face="serif">23-1714256</font></td>
  </tr>
  <tr align="center" valign="middle">
    <td><font size="2" face="serif">(Commission File Number)</font></td>
    <td><font size="2" face="serif">(IRS Employer
Identification Number)</font></td>
  </tr>
  <tr align="center" valign="middle">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr align="center" valign="middle">
    <td colspan="2"><font size="2" face="serif">&nbsp; </font></td>
  </tr>
  <tr align="center" valign="middle">
    <td><font size="2" face="serif">County Line Industrial Park</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr align="center" valign="middle">
    <td><font size="2" face="serif">Southampton, Pennsylvania</font></td>
    <td><font size="2" face="serif">18966</font></td>
  </tr>
  <tr align="center" valign="middle">
    <td><font size="2" face="serif">(Address of principal executive offices) </font></td>
    <td><font size="2" face="serif">(Zip Code)</font></td>
  </tr>
</table>
<p align="center"><font size="2" face="serif">Registrant&#146;s telephone number, including
    area code (215) 355-9100</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page> <a name="p?"></a>
<p align="center">&nbsp;</p>
<p align="left"><font size="2" face="serif"><b>Item 1.01. Entry into a Material
      Definitive Agreement</b></font></p>
<p align="left"><font size="2" face="serif"><b>Item 3.02 Unregistered Sales of
      Equity Securities.  </b></font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
July 31, 2006, Environmental Tectonics Corporation (&#147;ETC&#148;) issued a
Draw
Down Notice to H. F. Lenfest (&#147;Lenfest&#148;) pursuant to which ETC has
sold 3,000
shares of Series B Convertible Preferred Stock (the &#147;Preferred Stock&#148;)
to Lenfest for $3,000,000 in accordance with the terms of the Preferred Stock
Purchase Agreement (the &#147;Purchase
Agreement&#148;) dated as of April 6, 2006 between ETC and Lenfest. A copy of
the Purchase Agreement is filed as Exhibit 10.1 to ETC's Current Report on Form
8-K dated
April 6, 2006 and filed with the Securities and Exchange Commission (the &#147;SEC&#148;)
on April 7, 2006 and is incorporated herein by reference.  </font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
    conversion price for converting the Preferred Stock into shares of ETC&#146;s common
    stock is set with respect to the shares of Preferred Stock issued in connection
    with a specific draw down based on the closing price for ETC's common stock
    on the trading day immediately prior to the draw down, provided that the
    conversion price shall not be less than $4.95 per share, the floor price
    which was set at the time of the initial draw down under the Purchase Agreement.
    Based on the closing price of ETC's common stock of $6.68 per share on July
    28, 2006, the Preferred Stock issued in this Draw Down is convertible into
449,101 shares of ETC common stock.  </font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ETC's Current Report on Form 8-K dated April 6, 2006 and filed with the SEC on April 7, 2006 contains a full description of the rights and preferences of the Preferred Stock.</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ETC
    is relying on the exemption to the registration requirements of the Securities
Act of 1933, as amended (the &#147;Act&#148;) set forth in Section 4(2) of the Act
and Regulation D promulgated thereunder with respect to the issuance and sale
of the Preferred Stock pursuant to the Purchase Stock and other available exemptions
with respect to the issuance of ETC common stock upon the conversion of such
shares of Preferred Stock.</font></p>
<p align="center"><font face="serif" size="2">2</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p?"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="center"><font size="2" face="serif">SIGNATURES</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 thereunto duly authorized.</font></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="50%">&nbsp;</td>
    <td colspan="2"><font size="2" face="serif">ENVIRONMENTAL TECTONICS CORPORATION</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><font size="2" face="serif">&nbsp;Registrant</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2" face="serif">Date: August 1, 2006</font></td>
    <td><font size="2" face="serif">By <u></u></font></td>
    <td><font size="2" face="serif"><u>/s/ Duane D. Deaner&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size="2" face="serif">Duane D. Deaner</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size="2" face="serif">Chief Financial Officer</font></td>
  </tr>
</table>
<p align="left"><font size="2" face="serif"></font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
<p align="left">&nbsp;</p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
<p align="center"><font face="serif" size="2">3</font></p>
<hr noshade align="center" width="100%" size="2">
</body>
</html>
[{"type": "8-K", "sequence": "1", "filename": "b414300_8k.htm", "description": "FORM 8-K", "secsgml_size_bytes": 7237}]
{"company-data": {"conformed-name": "ENVIRONMENTAL TECTONICS CORP", "cik": "0000033113", "assigned-sic": "3690", "irs-number": "231714256", "state-of-incorporation": "PA", "fiscal-year-end": "0225"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-10655", "film-number": "06993306"}, "business-address": {"street1": "COUNTY LINE INDUSTRIAL PARK", "city": "SOUTHAMPTON", "state": "PA", "zip": "18966", "phone": "2153559100"}, "mail-address": {"street1": "COUNTYLINE INDUSTRIAL PARK", "city": "SOUTHAMPTON", "state": "PA", "zip": "18966"}, "former-company": {"former-conformed-name": "ENVIRONMENTAL TECHNOLOGY CORP", "date-changed": "19730208"}}
Prepared and filed by St Ives Financial
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 Earliest Event Reported
July 31, 2006
Environmental Tectonics Corporation
(Exact name of registrant as specified in its charter)
Pennsylvania
(State or other jurisdiction of incorporation of organization)
1-10655
23-1714256
(Commission File Number)
(IRS Employer
Identification Number)
County Line Industrial Park
Southampton, Pennsylvania
18966
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including
    area code (215) 355-9100
Item 1.01. Entry into a Material
      Definitive Agreement
Item 3.02 Unregistered Sales of
      Equity Securities.
On
July 31, 2006, Environmental Tectonics Corporation ("ETC") issued a
Draw
Down Notice to H. F. Lenfest ("Lenfest") pursuant to which ETC has
sold 3,000
shares of Series B Convertible Preferred Stock (the "Preferred Stock")
to Lenfest for $3,000,000 in accordance with the terms of the Preferred Stock
Purchase Agreement (the "Purchase
Agreement") dated as of April 6, 2006 between ETC and Lenfest. A copy of
the Purchase Agreement is filed as Exhibit 10.1 to ETC's Current Report on Form
8-K dated
April 6, 2006 and filed with the Securities and Exchange Commission (the "SEC")
on April 7, 2006 and is incorporated herein by reference.
The
    conversion price for converting the Preferred Stock into shares of ETC's common
    stock is set with respect to the shares of Preferred Stock issued in connection
    with a specific draw down based on the closing price for ETC's common stock
    on the trading day immediately prior to the draw down, provided that the
    conversion price shall not be less than $4.95 per share, the floor price
    which was set at the time of the initial draw down under the Purchase Agreement.
    Based on the closing price of ETC's common stock of $6.68 per share on July
    28, 2006, the Preferred Stock issued in this Draw Down is convertible into
449,101 shares of ETC common stock.
ETC's Current Report on Form 8-K dated April 6, 2006 and filed with the SEC on April 7, 2006 contains a full description of the rights and preferences of the Preferred Stock.
ETC
    is relying on the exemption to the registration requirements of the Securities
Act of 1933, as amended (the "Act") set forth in Section 4(2) of the Act
and Regulation D promulgated thereunder with respect to the issuance and sale
of the Preferred Stock pursuant to the Purchase Stock and other available exemptions
with respect to the issuance of ETC common stock upon the conversion of such
shares of Preferred Stock.
2
Back to Contents
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 thereunto duly authorized.
ENVIRONMENTAL TECTONICS CORPORATION
Registrant
Date: August 1, 2006
By
/s/ Duane D. Deaner
Duane D. Deaner
Chief Financial Officer
3