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      STATES</strong></font></div>
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      AND EXCHANGE COMMISSION</strong></font></div>
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      D.C. 20549 </strong></font></div>
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      8-K</strong></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>CURRENT
      REPORT </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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      to Section 13 or 15(d) of the Securities Exchange Act of 1934
</strong></font></div>
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      of Report (Date of earliest event reported): December 15, 2005
</strong></font></div>
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      <div>&#160;</div>
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      COASTAL TRADING CORPORATION </strong></font></div>
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      name of registrant as specified in its charter) </strong></font></div>
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            <td align="left" valign="bottom" width="1%">&#160;</td>
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      396-1691</strong></font></div>
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      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (see General Instruction A.2. below): </font></div>
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                CFR
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          <tr>
            <td align="left" valign="top" width="3%">
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                communications pursuant to Rule 13e-4(c) under the Exchange Act (17
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            </td>
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    <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">
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    <div>&#160;</div>
    <div id="PN" style="PAGE-BREAK-AFTER: always">
      <div style="WIDTH: 100%; TEXT-ALIGN: center">
      </div>
      <div>
        <hr style="MARGIN-TOP: -5px; COLOR: #000000" noshade size="1">
        <hr style="MARGIN-TOP: -13px; COLOR: #000000" noshade size="4">
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    </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="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      1.01. </strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>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="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
      December 15, 2005, Cape Coastal Trading Corporation, a New York corporation
      (&#8220;CCTR-NY&#8221;) merged with and into its wholly-owned subsidiary, Cape Coastal
      Trading Corporation, a Delaware corporation (&#8220;CCTR-DE&#8221; or the &#8220;Surviving
      Corporation&#8221;), for the sole purpose of changing the state of incorporation from
      New York to Delaware (the &#8220;Reincorporation&#8221;). The Reincorporation was effected
      pursuant to the Agreement and Plan of Merger by and between CCTR-NY and CCTR-DE,
      dated as of December 15, 2005 (the &#8220;Merger Agreement&#8221;). The Merger Agreement and
      Reincorporation were submitted to a vote of, and approved by, the shareholders
      at a special meeting of shareholders held on November 11, 2005. As a result
      of
      the Reincorporation, and subsequent to the appropriate filings with the States
      of New York and Delaware, the legal domicile of the Surviving Corporation is
      now
      Delaware. The Surviving Corporation will operate under the name of &#8220;Cape Coastal
      Trading Corporation.&#8221;</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">Under
      the
      terms of the Merger Agreement, shares of common stock of CCTR-NY were converted
      on a one-for-one basis into shares of common stock of CCTR-DE. Pursuant to
      the
      Merger Agreement, the directors and officers of CCTR-DE in office immediately
      prior to the Reincorporation will continue to serve as directors and
      officers<strong>&#160;</strong>of the Surviving Corporation. The Certificate of
      Incorporation and Bylaws of CCTR-DE in effect immediately prior to the
      Reincorporation shall govern the Surviving Corporation. The Certificate of
      Incorporation of the Surviving Corporation authorizes the issuance of 200
      million shares of common stock, $.001 par value per share, and 25 million shares
      of preferred stock, $.001 par value per share. </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">Following
      the Reincorporation, Delaware corporate law will be applicable in the
      determination of the rights of stockholders.&#160; The Surviving Corporation
      refers its stockholders to the definitive proxy statement filed October&#160;28,
      2005 with the Securities and Exchange Commission for a summary of the primary
      differences between New York and Delaware corporate law with respect to
      stockholder rights.</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">The
      Agreement and Plan of Merger, Certificate of Incorporation and Bylaws are filed
      as exhibits to this Current Report on Form 8-K and are incorporated herein
      by
      reference.</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="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      3.03. </strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Material
      Modification to Rights of Security Holders.</strong></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">The
      information set forth above under &#8220;Item 1.01. Entry Into a Material Definitive
      Agreement&#8221; is incorporated herein by reference.</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">Immediately
      prior to the Reincorporation, on December 15, 2005, CCTR-NY effected a reverse
      stock split, which was approved by its shareholders on November 11, 2005 at
      a
      special meeting (the &#8220;Reverse Split&#8221;). A Certificate of Amendment to CCTR-NY&#8217;s
      Certificate of Incorporation was filed with the Secretary of State of the State
      of New York to effect the Reverse Split. In the Reverse Split, each outstanding
      share of CCTR-NY common stock was converted into 0.6 shares of common stock.
      The
      Reverse Split reduced the number of outstanding shares of CCTR-NY common stock
      from 2,300,375 to 1,380,225. Simultaneous with the Reverse Split, 780,892 shares
      of CCTR-NY common stock were cancelled without further consideration. As a
      result, immediately prior to the Reincorporation, CCTR-NY had 599,333 shares
      of
      common stock outstanding. The Reverse Split will affect all of CCTR-NY&#8217;s
      shareholders uniformly and will not affect any shareholder&#8217;s percentage
      ownership or proportionate voting power. </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">A
      new
      trading symbol was issued by the NASDAQ as of December 15, 2005,
&#8220;CCSR.OB.&#8221;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="3">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
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    <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
      9.01. </strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Financial
      Statements and Exhibits.</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"><strong>(d)</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exhibits.</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="left">
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="top" width="14%" 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"><strong>Exhibit
                Number</strong></font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="84%" style="BORDER-BOTTOM: black thin solid">
              <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>Description</strong></font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="top" width="14%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="top" width="84%">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td align="left" valign="top" width="14%">
              <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"><a href="v031842_ex2-1.htm">2.1</a></font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="top" width="84%">
              <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"><a href="v031842_ex2-1.htm">Agreement
                and Plan of Merger by and between Cape
                Coastal Trading Corporation, a New York corporation and Cape Coastal
                Trading Corporation, a Delaware corporation, dated as of December
                15,
                2005.</a></font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="top" width="14%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="top" width="84%">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td align="left" valign="top" width="14%">
              <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"><a href="v031842_ex3-1.htm">3.1</a></font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="top" width="84%">
              <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"><a href="v031842_ex3-1.htm">Certificate
                of Incorporation of Cape Coastal
                Trading Corporation, a Delaware corporation.</a></font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="top" width="14%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="top" width="84%">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td align="left" valign="top" width="14%">
              <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"><a href="v031842_ex3-2.htm">3.2</a></font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="top" width="84%">
              <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"><a href="v031842_ex3-2.htm">Bylaws
                of Cape Coastal Trading Corporation, a
                Delaware corporation.</a></font></div>
            </td>
          </tr>

      </table>
    </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">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="3">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </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>SIGNATURES</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: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the requirements of the Securities Exchange Act of 1934, as amended, the
      registrant has duly caused this report to be signed on its behalf by the
      undersigned hereunto duly authorized.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; 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>
        <table align="center" bgcolor="#ffffff" border="0" cellpadding="0" cellspacing="0" width="100%">

            <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>
            <tr valign="top" bgcolor="#ffffff">
              <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: "><strong>CAPE
                COASTAL TRADING CORPORATION</strong></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>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">Dated:&#160;
                December 21, 2005</font></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;GEOFFREY
                ALISON</font></td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td colspan="2"><font style="FONT-FAMILY: " size="1">&#160;</font></td>
              <td align="left">
                <hr style="COLOR: black" align="left" noshade size="2" width="80%">
              </td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
              <td>
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">Name:&#160;&#160;
                  Geoffrey Alison</font></div>
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">Title:&#160;&#160;&#160;&#160;
                  President</font></div>
              </td>
            </tr>

        </table>
      </div><br></div>
    <div>&#160;</div>
    <div><br>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="3">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </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>Index
      to Exhibits</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 align="left">
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="top" width="14%" 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"><strong>Exhibit
                Number</strong></font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="84%" style="BORDER-BOTTOM: black thin solid">
              <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>Description</strong></font></div>
            </td>
          </tr>
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            <td align="left" valign="top" width="14%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="top" width="84%">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td align="left" valign="top" width="14%">
              <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"><a href="v031842_ex2-1.htm">2.1</a></font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="top" width="84%">
              <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"><a href="v031842_ex2-1.htm">Agreement
                and Plan of Merger by and between Cape
                Coastal Trading Corporation, a New York corporation and Cape Coastal
                Trading Corporation, a Delaware corporation, dated as of December
                15,
                2005.</a></font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="top" width="14%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="top" width="84%">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td align="left" valign="top" width="14%">
              <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"><a href="v031842_ex3-1.htm">3.1</a></font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="top" width="84%">
              <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"><a href="v031842_ex3-1.htm">Certificate
                of Incorporation of Cape Coastal
                Trading Corporation, a Delaware corporation.</a></font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="top" width="14%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="top" width="84%">&#160;</td>
          </tr>
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            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="top" width="84%">
              <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"><a href="v031842_ex3-2.htm">Bylaws
                of Cape Coastal Trading Corporation, a
                Delaware corporation.</a></font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
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{"company-data": {"conformed-name": "CAPE COASTAL TRADING CORP", "cik": "0001219097", "assigned-sic": "5000", "irs-number": "522372260", "state-of-incorporation": "NY", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-50995", "film-number": "051278800"}, "business-address": {"street1": "350 5TH AVENUE", "street2": "SUITE 3304", "city": "NEW YORK", "state": "NY", "zip": "10018", "phone": "212-971-9715"}, "mail-address": {"street1": "350 5TH AVENUE", "street2": "SUITE 3304", "city": "NEW YORK", "state": "NY", "zip": "10018"}}
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): December 15, 2005
CAPE
      COASTAL TRADING CORPORATION
(Exact
      name of registrant as specified in its charter)
Delaware
000-50995
52-2372260
(State
                or other jurisdiction
of
                incorporation)
(Commission
                File Number)
(I.R.S.
                Employer
Identification
                Number)
122
                Ocean Park Blvd., Suite 307
Santa
                Monica, California
90405
(Address
                of principal executive offices)
(Zip
                Code)
(310)
      396-1691
(Registrant's
      telephone number, including area code)
Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (see General Instruction A.2. below):
¨
Written
                communications pursuant to Rule 425 under the Securities Act (17
                CFR
                230.425)
¨
Soliciting
                material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
                240.14a-12)
¨
Pre-commencement
                communications pursuant to Rule 14d-2(b) under the Exchange Act (17
                CFR
                240.14d-2(b))
¨
Pre-commencement
                communications pursuant to Rule 13e-4(c) under the Exchange Act (17
                CFR
                240.13e-4(c))
Item
      1.01.
Entry
      Into a Material Definitive Agreement.
On
      December 15, 2005, Cape Coastal Trading Corporation, a New York corporation
      ("CCTR-NY") merged with and into its wholly-owned subsidiary, Cape Coastal
      Trading Corporation, a Delaware corporation ("CCTR-DE" or the "Surviving
      Corporation"), for the sole purpose of changing the state of incorporation from
      New York to Delaware (the "Reincorporation"). The Reincorporation was effected
      pursuant to the Agreement and Plan of Merger by and between CCTR-NY and CCTR-DE,
      dated as of December 15, 2005 (the "Merger Agreement"). The Merger Agreement and
      Reincorporation were submitted to a vote of, and approved by, the shareholders
      at a special meeting of shareholders held on November 11, 2005. As a result
      of
      the Reincorporation, and subsequent to the appropriate filings with the States
      of New York and Delaware, the legal domicile of the Surviving Corporation is
      now
      Delaware. The Surviving Corporation will operate under the name of "Cape Coastal
      Trading Corporation."
Under
      the
      terms of the Merger Agreement, shares of common stock of CCTR-NY were converted
      on a one-for-one basis into shares of common stock of CCTR-DE. Pursuant to
      the
      Merger Agreement, the directors and officers of CCTR-DE in office immediately
      prior to the Reincorporation will continue to serve as directors and
      officers
of the Surviving Corporation. The Certificate of
      Incorporation and Bylaws of CCTR-DE in effect immediately prior to the
      Reincorporation shall govern the Surviving Corporation. The Certificate of
      Incorporation of the Surviving Corporation authorizes the issuance of 200
      million shares of common stock, $.001 par value per share, and 25 million shares
      of preferred stock, $.001 par value per share.
Following
      the Reincorporation, Delaware corporate law will be applicable in the
      determination of the rights of stockholders.  The Surviving Corporation
      refers its stockholders to the definitive proxy statement filed October 28,
      2005 with the Securities and Exchange Commission for a summary of the primary
      differences between New York and Delaware corporate law with respect to
      stockholder rights.
The
      Agreement and Plan of Merger, Certificate of Incorporation and Bylaws are filed
      as exhibits to this Current Report on Form 8-K and are incorporated herein
      by
      reference.
Item
      3.03.
Material
      Modification to Rights of Security Holders.
The
      information set forth above under "Item 1.01. Entry Into a Material Definitive
      Agreement" is incorporated herein by reference.
Immediately
      prior to the Reincorporation, on December 15, 2005, CCTR-NY effected a reverse
      stock split, which was approved by its shareholders on November 11, 2005 at
      a
      special meeting (the "Reverse Split"). A Certificate of Amendment to CCTR-NY's
      Certificate of Incorporation was filed with the Secretary of State of the State
      of New York to effect the Reverse Split. In the Reverse Split, each outstanding
      share of CCTR-NY common stock was converted into 0.6 shares of common stock.
      The
      Reverse Split reduced the number of outstanding shares of CCTR-NY common stock
      from 2,300,375 to 1,380,225. Simultaneous with the Reverse Split, 780,892 shares
      of CCTR-NY common stock were cancelled without further consideration. As a
      result, immediately prior to the Reincorporation, CCTR-NY had 599,333 shares
      of
      common stock outstanding. The Reverse Split will affect all of CCTR-NY's
      shareholders uniformly and will not affect any shareholder's percentage
      ownership or proportionate voting power.
A
      new
      trading symbol was issued by the NASDAQ as of December 15, 2005,
"CCSR.OB."
Item
      9.01.
Financial
      Statements and Exhibits.
(d)
Exhibits.
Exhibit
                Number
Description
2.1
Agreement
                and Plan of Merger by and between Cape
                Coastal Trading Corporation, a New York corporation and Cape Coastal
                Trading Corporation, a Delaware corporation, dated as of December
                15,
                2005.
3.1
Certificate
                of Incorporation of Cape Coastal
                Trading Corporation, a Delaware corporation.
3.2
Bylaws
                of Cape Coastal Trading Corporation, a
                Delaware corporation.
SIGNATURES
Pursuant
      to the requirements of the Securities Exchange Act of 1934, as amended, the
      registrant has duly caused this report to be signed on its behalf by the
      undersigned hereunto duly authorized.
CAPE
                COASTAL TRADING CORPORATION
Dated: 
                December 21, 2005
By:
/s/ GEOFFREY
                ALISON
Name:  
                  Geoffrey Alison
Title:    
                  President
Index
      to Exhibits
Exhibit
                Number
Description
2.1
Agreement
                and Plan of Merger by and between Cape
                Coastal Trading Corporation, a New York corporation and Cape Coastal
                Trading Corporation, a Delaware corporation, dated as of December
                15,
                2005.
3.1
Certificate
                of Incorporation of Cape Coastal
                Trading Corporation, a Delaware corporation.
3.2
Bylaws
                of Cape Coastal Trading Corporation, a
                Delaware corporation.