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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">UNITED
      STATES</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECURITIES
      AND EXCHANGE COMMISSION</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">WASHINGTON,
      D.C. 20549</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>FORM
      8-K</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CURRENT
      REPORT</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to Section 13 or 15(d) of the Securities Exchange Act of 1934</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
      of
      Report (Date of earliest event reported): July 28, 2006</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Capital
      Growth Systems, Inc.</font></div>
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      Name of Registrant as Specified in Its Charter)</font></div>
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            <td valign="top" width="30%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Florida</font></div>
            </td>
            <td width="5%">&#160;</td>
            <td valign="top" width="30%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0-30831</font></div>
            </td>
            <td width="5%">&#160;</td>
            <td valign="top" width="30%" style="border-bottom: black thin solid;">
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(State
                or other jurisdiction of incorporation)</font></div>
            </td>
            <td width="5%">&#160;</td>
            <td valign="top" width="30%" style="border-bottom: white thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Commission
                File Number)</font></div>
            </td>
            <td width="5%">&#160;</td>
            <td valign="top" width="30%" style="border-bottom: white thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(I.R.S.
                Employer Identification No.)</font></div>
            </td>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">50
      East
      Commerce Drive, Suite A, Schaumburg, Illinois 60173</font></div>
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      <div>
        <hr style="COLOR: black" align="center" noshade size="1" width="30%">
      </div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Address
      of Principal Executive Offices, Including Zip Code)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(630)
      872-5800</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
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      </div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Registrant's
      Telephone Number, Including Area Code)</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Not
      Applicable</font></div>
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        </div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Former
        Name or Former Address, if Changed Since Last Report)</font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">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:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Wingdings">o</font>&#160;Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Wingdings">o</font>&#160;Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Wingdings">o</font>&#160;Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Wingdings">o</font>&#160;Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div><br>
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      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">Page
          1 of 4</font></div>
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      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>TABLE
      OF CONTENTS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div align="center">
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

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            <td width="100%">
              <div><font size="2">Item 1.01 Entry into a Material Definitive
                Agreement</font></div>
              <div>&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="100%">
              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
                2.03 Creation of a Direct Financial Obligation or an Obligation under
                an
                Off-Balance Sheet Arrangement of a Registrant</font></div>
              <div>&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td width="100%">
              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
                3.02 Unregistered Sales of Equity Securities</font></div>
              <div>&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="100%">
              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Signature
                Page</font></div>
            </td>
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      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">Page
          2 of 4</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      1.01 Entry into a Material Definitive Agreement</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      July
      28, 2006, Capital Growth Systems, Inc. (&#8220;CGSY&#8221;) entered into a Purchase
      Agreement (the &#8220;Agreement&#8221;) with Augustine Fund, L.P., an Illinois limited
      partnership (&#8220;Augustine&#8221;), and Michael Balkin (&#8220;Balkin&#8221;) and David Lies (&#8220;Lies&#8221;)
      (each of Balkin and Lies, also a &#8220;Guarantor&#8221; and collectively the
&#8220;Guarantors&#8221;).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Augustine
      was the holder of promissory notes issued by 20/20 Technologies, Inc. (&#8220;20/20
      Inc.&#8221;), 20/20 Technologies, LLC, and Magenta Netlogic Limited d/b/a/ CSB Global,
      Ltd. issued pursuant to that certain Augustine Loan and Security Agreement
      dated
      January 13, 2005, between the Debtors and Augustine, as amended on June 22,
      2005
      (the &#8220;Loan Agreement&#8221;) in the aggregate original principal amount of $1,600,000
      (collectively the &#8220;Notes&#8221;). Additionally, Augustine held warrants to purchase
      equity securities of 20/20 Inc. (the &#8220;20/20 Warrants&#8221;). Pursuant to the
      Agreement, the Guarantors agreed to purchase a portion of the Notes and 20/20
      Warrants and CGSY agreed to purchase the balance of the Notes and 20/20 Warrants
      for a payment of $1,000,000.00, due on August 31, 2006.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      July
      28, 2006, CGSY also entered into that certain Agreement (the &#8220;Side Agreement&#8221;)
      with the Guarantors pursuant to which each of the Guarantors agreed to guarantee
      the payment by CGSY to Augustine of the $1,000,000 purchase price for the CGSY
      Notes and CGSY Warrant as set forth in the Purchase Agreement. In consideration
      of such guaranty, CGSY granted each Guarantor a warrant to purchase 500,000
      shares of common stock of CGSY.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      2.03 Creation of a Direct Financial Obligation or an Obligation under an
      Off-Balance Sheet Arrangement of a Registrant</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the Purchase Agreement, CGSY is obligated to purchase from Augustine the
      CGSY
      Notes and CGSY Warrants and will give to Augustine a cash payment in the amount
      $1,000,000 therefore. In further consideration of Augustine entering into the
      Purchase Agreement, CGSY is obligated upon execution of the Purchase Agreement
      to issue a warrant to Augustine to purchase 150,000 shares of common stock
      of
      CGSY. In addition pursuant to the Side Agreement, CGSY is obligated to issue
      a
      warrant to each of Balkin and Lies to purchase 500,000 shares of common stock
      of
      CGSY.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      3.02 Unregistered Sales of Equity Securities</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Augustine
      will sell to each of Balkin and Lies an equal portion of the Guarantor Notes
      and
      the Guarantor Warrants, and Balkin and Lies will purchase from Augustine an
      equal portion of the Guarantor Notes and the Guarantor Warrants. In
      consideration of providing the guaranty, CGSY is obligated to issue a warrant
      to
      each of Balkin and Lies to purchase 500,000 shares of common stock of
      CGSY.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Prior
        to
        the Agreement, CGSY entered into a series of loans, pursuant to which, CGSY
        issued warrants for the purchase of common stock. Initially, CGSY issued
        a
        Warrant for 150,000 shares to Doug Stukel, an officer of the CGSY for short
        term
        financing provided by Mr Stukel. Secondly, Mr. Lou Orenstein agreed to loan
        $400,000 to CGSY, for which CGSY agreed to issue a warrant for 400,000 shares
        of
        common stock. To date, Mr. Orenstein has funded $200,000 under the financing
        and
        CGSY has issued a warrant for 200,000 shares. CGSY has an obligation to issue
        another warrant for 200,000 shares upon funding the remaining $200,000 by
        Mr.
        Orenstein. Finally, George Mellon has agreed to provide credit enhancement
        for
        these and other loans to CGSY for which CGSY has agreed to issue a warrant
        to
        Mr. Mellon for 216,666 shares. </font></div>
    </div><br>
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      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. </font></div>
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          <tr valign="top" bgcolor="#ffffff">
            <td width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="49%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
          </tr>
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            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">CAPITAL
              GROWTH
              SYSTEMS, INC.</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
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            <td>&#160;</td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">By:&#160;&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">/s/&#160;Derry
              L.
              Behm</font></td>
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            <td align="left">
              <hr style="COLOR: black" align="left" noshade size="2" width="80%"><font size="2">Derry
              L. Behm,</font></td>
          </tr>
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            <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">Chief
              Financial and Accounting Officer</font></td>
          </tr>

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      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">August
      3,
      2006</font></div>
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{"company-data": {"conformed-name": "CAPITAL GROWTH SYSTEMS INC /FL/", "cik": "0001116694", "assigned-sic": "6770", "irs-number": "650953505", "state-of-incorporation": "FL", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-30831", "film-number": "061003027"}, "business-address": {"street1": "23123 STATE ROAD 7 SUITE 350B", "city": "BOCA RATON", "state": "FL", "zip": "33428", "phone": "5613625287"}, "mail-address": {"street1": "ONE W CAMINO REAL", "street2": "STE 118", "city": "BOCA RATON", "state": "FL", "zip": "33432"}}
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): July 28, 2006
Capital
      Growth Systems, Inc.
(Exact
      Name of Registrant as Specified in Its Charter)
Florida
0-30831
65-0953505
(State
                or other jurisdiction of incorporation)
(Commission
                File Number)
(I.R.S.
                Employer Identification No.)
50
      East
      Commerce Drive, Suite A, Schaumburg, Illinois 60173
(Address
      of Principal Executive Offices, Including Zip Code)
(630)
      872-5800
(Registrant's
      Telephone Number, Including Area Code)
Not
      Applicable
(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))
Page
          1 of 4
TABLE
      OF CONTENTS
Item 1.01 Entry into a Material Definitive
                Agreement
Item
                2.03 Creation of a Direct Financial Obligation or an Obligation under
                an
                Off-Balance Sheet Arrangement of a Registrant
Item
                3.02 Unregistered Sales of Equity Securities
Signature
                Page
Page
          2 of 4
Item
      1.01 Entry into a Material Definitive Agreement
On
      July
      28, 2006, Capital Growth Systems, Inc. ("CGSY") entered into a Purchase
      Agreement (the "Agreement") with Augustine Fund, L.P., an Illinois limited
      partnership ("Augustine"), and Michael Balkin ("Balkin") and David Lies ("Lies")
      (each of Balkin and Lies, also a "Guarantor" and collectively the
"Guarantors").
Augustine
      was the holder of promissory notes issued by 20/20 Technologies, Inc. ("20/20
      Inc."), 20/20 Technologies, LLC, and Magenta Netlogic Limited d/b/a/ CSB Global,
      Ltd. issued pursuant to that certain Augustine Loan and Security Agreement
      dated
      January 13, 2005, between the Debtors and Augustine, as amended on June 22,
      2005
      (the "Loan Agreement") in the aggregate original principal amount of $1,600,000
      (collectively the "Notes"). Additionally, Augustine held warrants to purchase
      equity securities of 20/20 Inc. (the "20/20 Warrants"). Pursuant to the
      Agreement, the Guarantors agreed to purchase a portion of the Notes and 20/20
      Warrants and CGSY agreed to purchase the balance of the Notes and 20/20 Warrants
      for a payment of $1,000,000.00, due on August 31, 2006.
On
      July
      28, 2006, CGSY also entered into that certain Agreement (the "Side Agreement")
      with the Guarantors pursuant to which each of the Guarantors agreed to guarantee
      the payment by CGSY to Augustine of the $1,000,000 purchase price for the CGSY
      Notes and CGSY Warrant as set forth in the Purchase Agreement. In consideration
      of such guaranty, CGSY granted each Guarantor a warrant to purchase 500,000
      shares of common stock of CGSY.
Item
      2.03 Creation of a Direct Financial Obligation or an Obligation under an
      Off-Balance Sheet Arrangement of a Registrant
Pursuant
      to the Purchase Agreement, CGSY is obligated to purchase from Augustine the
      CGSY
      Notes and CGSY Warrants and will give to Augustine a cash payment in the amount
      $1,000,000 therefore. In further consideration of Augustine entering into the
      Purchase Agreement, CGSY is obligated upon execution of the Purchase Agreement
      to issue a warrant to Augustine to purchase 150,000 shares of common stock
      of
      CGSY. In addition pursuant to the Side Agreement, CGSY is obligated to issue
      a
      warrant to each of Balkin and Lies to purchase 500,000 shares of common stock
      of
      CGSY.
Item
      3.02 Unregistered Sales of Equity Securities
Augustine
      will sell to each of Balkin and Lies an equal portion of the Guarantor Notes
      and
      the Guarantor Warrants, and Balkin and Lies will purchase from Augustine an
      equal portion of the Guarantor Notes and the Guarantor Warrants. In
      consideration of providing the guaranty, CGSY is obligated to issue a warrant
      to
      each of Balkin and Lies to purchase 500,000 shares of common stock of
      CGSY.
Prior
        to
        the Agreement, CGSY entered into a series of loans, pursuant to which, CGSY
        issued warrants for the purchase of common stock. Initially, CGSY issued
        a
        Warrant for 150,000 shares to Doug Stukel, an officer of the CGSY for short
        term
        financing provided by Mr Stukel. Secondly, Mr. Lou Orenstein agreed to loan
        $400,000 to CGSY, for which CGSY agreed to issue a warrant for 400,000 shares
        of
        common stock. To date, Mr. Orenstein has funded $200,000 under the financing
        and
        CGSY has issued a warrant for 200,000 shares. CGSY has an obligation to issue
        another warrant for 200,000 shares upon funding the remaining $200,000 by
        Mr.
        Orenstein. Finally, George Mellon has agreed to provide credit enhancement
        for
        these and other loans to CGSY for which CGSY has agreed to issue a warrant
        to
        Mr. Mellon for 216,666 shares.
Page
          3 of 4
SIGNATURE
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.
CAPITAL
              GROWTH
              SYSTEMS, INC.
By:
/s/ Derry
              L.
              Behm
Derry
              L. Behm,
Chief
              Financial and Accounting Officer
Dated:
August
      3,
      2006
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            4 of 4