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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="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>UNITED
      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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    <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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      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="left">&#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"><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"><strong>Pursuant
      to Section 13 or 15(d) of the Securities Exchange Act of
      1934</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">&#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"><strong>June
      22, 2006</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">Date
      of
      Report (Date of earliest event reported)</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">&#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: 24pt; FONT-FAMILY: Times New Roman"><strong>MFC
      DEVELOPMENT CORP.</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">(Exact
      name of registrant as specified in its charter)</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">&#160;</div>
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            </td>
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                or other jurisdiction of incorporation)</font></div>
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                File 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"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(IRS
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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">&#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"><strong>271
      North Avenue, Suite 520</strong></font></div>
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      Rochelle, NY 10801</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">(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="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 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">Registrant's
      telephone number, including area code: </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(914)
      636-3432</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">&#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">Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligations of the registrant under any of the following
      provisions (see General Instruction A.2. below):</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">&#160;</div>
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            <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#4064;</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Written
                communications pursuant to Rule 425 under the Securities Act (17
                CFR
                230.425)</font></div>
            </td>
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            <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#4064;</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Soliciting
                material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
                240.14a-12)</font></div>
            </td>
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            <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#4064;</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">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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            <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#4064;</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
                communications pursuant to Rule 13e-4(c) under the Exchange Act (17
                CFR
                240.13e-4(c))</font></div>
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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"><br>
      <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">&#160;</div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
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        </div>
        <div id="HDR">
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      </div><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>Forward-Looking
      Statements</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="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Statements
      in this Current Report on Form 8-K (including the exhibit) that are not purely
      historical facts, including statements regarding MFC Development Corp.'s
      beliefs, expectations, intentions or strategies for the future, may be
      "forward-looking statements" under the Private Securities Litigation Reform
      Act
      of 1995. All forward-looking statements involve a number of risks and
      uncertainties that could cause actual results to differ materially from the
      plans, intentions and expectations reflected in or suggested by the
      forward-looking statements. Such risks and uncertainties include, among others,
      introduction of products in a timely fashion, market acceptance of new products,
      cost increases, fluctuations in and obsolescence of inventory, price and product
      competition, availability of labor and materials, development of new third-party
      products and techniques that render MFC Development Corp.&#8217;s products obsolete,
      delays in obtaining regulatory approvals, potential product recalls and
      litigation. Risk factors, cautionary statements and other conditions which
      could
      cause MFC Development Corp.'s actual results to differ from management's current
      expectations are contained in MFC Development Corp.'s filings with the
      Securities and Exchange Commission. MFC Development Corp. undertakes no
      obligation to update any forward-looking statement to reflect events or
      circumstances that may arise after the date of this filing.</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
      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
      June
      22, 2006, MFC Development Corp. (&#8220;MFC&#8221; or the &#8220;Registrant&#8221;) entered into entered
      into an Asset Purchase Agreement with Adsouth Partners, Inc. (OTCBB:ASPR),
      with
      an address at 1141 South Rogers Circle, Suite 11, Boca Raton, FL 33487, pursuant
      to which MFC is expected to acquire substantially all of the assets of Adsouth&#8217;s
      consumer products division in a combination cash and stock deal. The
      transaction, which is subject to various conditions to closing, is expected
      to
      be consummated by July 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="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under
      the
      terms of the Asset Purchase Agreement, MFC would acquire substantially all
      of
      the assets of Adsouth&#8217;s retail distribution and product brands division,
      including the brands DermaFresh and Mitsu, and the marketing and distribution
      rights to E70, Simon Solutions and Hercules Hook. The purchase price for the
      assets includes a cash and stock component. The cash component is $4 million
      dollars less the amount by which the value of the current and tangible assets
      being acquired are below a certain threshold at the time of closing and less
      the
      amount of trade payables and other business-related liabilities assumed by
      MFC.
      The cash component, currently estimated to be $2 million dollars, will paid
      at
      closing by MFC in the form of a convertible promissory note. </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">MFC
      has
      recently executed a non-binding term sheet for approximately $5.7 million in
      financing through the sale of a convertible debt instrument and, should the
      financing be completed, expects to use a portion of the proceeds to pay down
      at
      least 50% of the Adsouth note, at which time the balance of the Adsouth note
      would be amortized over 2 years. The stock component will consist of 5.5 million
      shares of MFC common stock, subject to adjustment under certain circumstances.
      The Company expects to register these shares, along with other shares, in a
      registration filing on Form SB-2. Conditions to the closing of the Adsouth
      acquisition include the satisfactory completion of MFC&#8217;s due diligence and the
      receipt of consents to the transfer of certain assets as well as other customary
      conditions. There can be no assurance that either the Adsouth acquisition or
      the
      financing transaction referenced above will ultimately be consummated.
</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"><br></div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
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      </div>
    </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
      8.01 Other Events</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
      June
      27, 2006, MFC issued a press release announcing that it has entered into an
      Asset Purchase Agreement with Adsouth Partners, Inc. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; 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 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: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td align="left" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)</font></td>
            <td align="left">
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibits</font></div>
            </td>
          </tr>

      </table>
    </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: 36pt; 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
      following exhibit is filed with this report:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; 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"><br></div>
    <div>
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          <tr>
            <td align="left" valign="bottom" width="5%" 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: 8pt; FONT-FAMILY: Times New Roman"><strong>Exhibit
                Number</strong></font></div>
            </td>
            <td valign="bottom" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
            </td>
            <td valign="bottom" width="69%" 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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.1</font></div>
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                release issued by MFC dated June 27, 2006, entitled &#8220;MFC Development Corp.
                Announces Signing of Asset Purchase Agreement with Adsouth Partners,
                Inc.&#8221;</font></div>
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      to the requirement of the Securities Exchange Act of 1934, the registrant has
      duly caused this report to be signed on its behalf by the undersigned duly
      authorized.</font></div>
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            <td width="30%">&#160;</td>
            <td width="70%"><font size="2">MFC DEVELOPMENT CORP.</font></td>
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            <td width="30%"><font size="2">June 28, 2006</font></td>
            <td width="70%"><font size="2"><u>/s/ VICTOR
              BRODSKY&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
              </u></font></td>
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            <td width="70%"><font size="2">Victor Brodsky</font></td>
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            <td width="30%">&#160;</td>
            <td width="70%"><em><font size="2">Vice President and Chief Financial
              Officer</font></em></td>
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            <td width="70%"><font size="2"><em>(Principal Financial and Accounting
              Officer</em><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></font></td>
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{"company-data": {"conformed-name": "MFC DEVELOPMENT CORP", "cik": "0001125532", "assigned-sic": "6500", "irs-number": "133579974", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-31667", "film-number": "06929053"}, "business-address": {"street1": "271 NORTH AVE", "street2": "SUITE 520", "city": "NEW ROCHELLE", "state": "NY", "zip": "10801", "phone": "914-636-3432"}, "mail-address": {"street1": "271 NORTH AVE", "street2": "SUITE 520", "city": "NEW ROCHELLE", "state": "NY", "zip": "10801"}}
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
June
      22, 2006
Date
      of
      Report (Date of earliest event reported)
MFC
      DEVELOPMENT CORP.
(Exact
      name of registrant as specified in its charter)
Delaware
000-31667
13-3579974
(State
                or other jurisdiction of incorporation)
(Commission
                File No.)
(IRS
                Employer Identification No.)
271
      North Avenue, Suite 520
New
      Rochelle, NY 10801
(Address
      of principal executive offices, including zip code)
Registrant's
      telephone number, including area code:
(914)
      636-3432
Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligations 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))
Forward-Looking
      Statements
Statements
      in this Current Report on Form 8-K (including the exhibit) that are not purely
      historical facts, including statements regarding MFC Development Corp.'s
      beliefs, expectations, intentions or strategies for the future, may be
      "forward-looking statements" under the Private Securities Litigation Reform
      Act
      of 1995. All forward-looking statements involve a number of risks and
      uncertainties that could cause actual results to differ materially from the
      plans, intentions and expectations reflected in or suggested by the
      forward-looking statements. Such risks and uncertainties include, among others,
      introduction of products in a timely fashion, market acceptance of new products,
      cost increases, fluctuations in and obsolescence of inventory, price and product
      competition, availability of labor and materials, development of new third-party
      products and techniques that render MFC Development Corp.'s products obsolete,
      delays in obtaining regulatory approvals, potential product recalls and
      litigation. Risk factors, cautionary statements and other conditions which
      could
      cause MFC Development Corp.'s actual results to differ from management's current
      expectations are contained in MFC Development Corp.'s filings with the
      Securities and Exchange Commission. MFC Development Corp. undertakes no
      obligation to update any forward-looking statement to reflect events or
      circumstances that may arise after the date of this filing.
Item
      1.01 Entry into a Material Definitive Agreement
On
      June
      22, 2006, MFC Development Corp. ("MFC" or the "Registrant") entered into entered
      into an Asset Purchase Agreement with Adsouth Partners, Inc. (OTCBB:ASPR),
      with
      an address at 1141 South Rogers Circle, Suite 11, Boca Raton, FL 33487, pursuant
      to which MFC is expected to acquire substantially all of the assets of Adsouth's
      consumer products division in a combination cash and stock deal. The
      transaction, which is subject to various conditions to closing, is expected
      to
      be consummated by July 31, 2006.
Under
      the
      terms of the Asset Purchase Agreement, MFC would acquire substantially all
      of
      the assets of Adsouth's retail distribution and product brands division,
      including the brands DermaFresh and Mitsu, and the marketing and distribution
      rights to E70, Simon Solutions and Hercules Hook. The purchase price for the
      assets includes a cash and stock component. The cash component is $4 million
      dollars less the amount by which the value of the current and tangible assets
      being acquired are below a certain threshold at the time of closing and less
      the
      amount of trade payables and other business-related liabilities assumed by
      MFC.
      The cash component, currently estimated to be $2 million dollars, will paid
      at
      closing by MFC in the form of a convertible promissory note.
MFC
      has
      recently executed a non-binding term sheet for approximately $5.7 million in
      financing through the sale of a convertible debt instrument and, should the
      financing be completed, expects to use a portion of the proceeds to pay down
      at
      least 50% of the Adsouth note, at which time the balance of the Adsouth note
      would be amortized over 2 years. The stock component will consist of 5.5 million
      shares of MFC common stock, subject to adjustment under certain circumstances.
      The Company expects to register these shares, along with other shares, in a
      registration filing on Form SB-2. Conditions to the closing of the Adsouth
      acquisition include the satisfactory completion of MFC's due diligence and the
      receipt of consents to the transfer of certain assets as well as other customary
      conditions. There can be no assurance that either the Adsouth acquisition or
      the
      financing transaction referenced above will ultimately be consummated.
Item
      8.01 Other Events
On
      June
      27, 2006, MFC issued a press release announcing that it has entered into an
      Asset Purchase Agreement with Adsouth Partners, Inc.
Item
      9.01
Financial Statements and Exhibits
(d)
Exhibits
The
      following exhibit is filed with this report:
Exhibit
                Number
Description
99.1
Press
                release issued by MFC dated June 27, 2006, entitled "MFC Development Corp.
                Announces Signing of Asset Purchase Agreement with Adsouth Partners,
                Inc."
SIGNATURE
Pursuant
      to the requirement of the Securities Exchange Act of 1934, the registrant has
      duly caused this report to be signed on its behalf by the undersigned duly
      authorized.
MFC DEVELOPMENT CORP.
June 28, 2006
/s/ VICTOR
              BRODSKY
Victor Brodsky
Vice President and Chief Financial
              Officer
(Principal Financial and Accounting
              Officer
)