SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10 QSB

(Mark One)

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934

For the quarterly period ended: March 31, 1997

OR

[ ]  TRANSITION  REPORT  PURSUANT  TO  SECTION  13 OR  15(d)  OF THE  SECURITIES
     EXCHANGE ACT OF 1934

For the transition period from ______________ to ________________

Commission file number: 2 41703

                           CASSCO CAPITAL CORPORATION
                           --------------------------
        (Exact name of small business issuer as specified in its charter)

             Delaware                                    43 1594165
             --------                                    ----------
  (State or other jurisdiction           (I.R.S. employer identification number)
of incorporation or organization)

1999 Broadway, Ste. 3250, Denver, Colorado                 80202
------------------------------------------                 -----
 (Address of principal executive offices)                (Zip Code)

Issuer's telephone number, including area code: (303) 292 2992

Indicate by check mark whether the issuer (1) has filed all reports  required to
be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days. Yes X No ___

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest practicable date: As of June 30, 1999, there were
approximately 22,817,005 shares outstanding.

<PAGE>
<TABLE>
<CAPTION>


I. PART I FINANCIAL INFORMATION


Item 1. Financial Statements
                                                               March 31, 1997   December 31, 1996
                                                               --------------   -----------------
                                                                  (Unaudited)   (Audited)
ASSETS

Current Assets:
<S>                                                                <C>          <C>
     Cash                                                               --      $    --
                                                                   ---------    ---------
     Total Current Assets                                               --      $    --
                                                                   ---------    ---------
          Total Assets                                             $    --      $    --
                                                                   =========    =========
LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities:
     Accounts payable                                              $    --      $    --
                                                                   ---------    ---------
          Total Current Liabilities                                     --      $    --
                                                                   ---------    ---------
Shareholders' Equity (Deficit)
       Common Stock, $.00333 par value, 75,000,000
             shares authorized, 3,442,505 shares
              issued and outstanding                                  11,464       11,464
       Additional paid in capital                                    100,552      100,552
Retained earnings (deficit)                                         (112,016)    (112,016)
                                                                   ---------    ---------
     Total Shareholders' Equity (Deficit)                               --           --
                                                                   ---------    ---------
            Total Liabilities and Shareholders' Equity (Deficit)   $    --           --
                                                                   =========    =========


</TABLE>
<PAGE>



                              CASSCO CAPITAL CORP.
                          (A Development Stage Company)

                            STATEMENTS OF OPERATIONS

                                                    Three months ended March 31,
                                                           1997       1996
                                                           ----       ----

Total Income                                                --         --
                                                         -------       ---

General and administrative expenses:
     Accountng                                              --         --
     Telephone                                              --         --
     Office rental                                          --         --
     Legal expenses                                         --         --
                                                         -------       ---
           Total Expenses                                   --         --
                                                         -------       ---

Other income and expenses:
     Forgiveness of debt                                    --         --
     Gain on stock recession                                --         --
     Interest expense                                       --         --
                                                         -------       ---
                                                         -------       ---

           Net income (loss)                             $  --         --
                                                         =======       ===



<PAGE>


                              CASSCO CAPITAL CORP.
                          (A Development Stage Company)

                            STATEMENTS OF CASH FLOWS

                                                     Three months ended March 31
                                                           1997        1996
Cash (used) by operating activities:
   Net loss                                                $ --        $  --

Adjustments to reconcile net gain (loss) to
    net cash provided by operating activities:               --           --

Net Cash Flows (used) by
   operating activities                                      --           --

Increase (decrease) in Cash                                  --           --

Cash at Beginning of the Period                              --           --
                                                           ------      -------
Cash at End of the Period                                    --           --

                                                           $ --        $  --
                                                           ======      =======

<PAGE>

                           CASSCO CAPITAL CORPORATION
                          (a development stage company)

                          Notes to Financial Statements
                                 March 31, 1997
                                   (Unaudited)

In the opinion of management,  all adjustments  (consisting of normal  recurring
adjustments)  considered  necessary  for a fair  presentation  of the  financial
condition of registrant have been included,  and the disclosures are adequate to
make the information presented not misleading.

Note 1. A summary of significant  accounting  policies is currently on file with
the U.S. Securities and Exchange Commission.

Note 2. The loss per share was  computed  by dividing  net loss by the  weighted
average number of shares of common stock outstanding during the period.

Note 3. Registrant has not declared or paid dividends on its common shares since
inception.

Note 4. The  accompanying  unaudited  condensed  financial  statements have been
prepared in accordance  with the  instructions to Form 10 QSB and do not include
all  information  and  footnotes  required  by  generally  accepted   accounting
principles for complete financial statements.

Note 5. Income taxes have not been provided for in that registrant has not had a
tax liability from inception  through the date of this report,  due to operating
losses.


<PAGE>



Item 2. Management's  Discussion and Analysis of Financial Condition and Results
of Operations

Results of  Operations:  Cassco  Capital  Corp.  (Company) was  incorporated  as
Anthony Kane Incorporated under the laws of the State of Delaware on February 5,
1969, and became subject to the reporting  provisions of the Securities Exchange
Act of 1934 on June 11, 1969, when a registration statement filed by the Company
was declared effective by the U.S.
Securities and Exchange Commission.

The name of the Company was changed to  Maid-Rite  Ventures,  Inc.,  on April 8,
1985,  and to Grandee  Corporation  on  September  23,  1985,  on which date the
Company also increased its authorized  shares of common stock from 25,000,000 to
75,000,000,  concurrently  effecting a decrease in par value per share from $.01
to $.00333.

In July, 1992, the Company entered into an agreement with K C Jakes BBQ & Grill,
Inc., for the purpose of acquiring KC Jakes as a subsidiary.  This agreement was
set aside by a court of competent  jurisdiction in 1994, as previously  reported
by the Company in a filing  under the  Securities  Exchange  Act of 1934 on Form
8-K.

On January 10, 1995, the Company entered into an agreement with Epsitek, Inc., a
Delaware  corporation  to acquire two  subsidiaries  of Epsitek as  wholly-owned
subsidiaries of the Company.  In conjunction with the  acquisition,  the Company
issued  6,000,000  shares of common stock to Epsitek,  which also  appointed new
directors and took control of the Company.  Subsequently,  Epsitek was unable to
complete the conditions imposed for and at closing. The acquisition,  therefore,
did not occur and the shares  issued in  connection  with the  acquisition  were
returned to treasury and the board  members of the Company  appointed by Epsitek
resigned.

The  Company  is  now  engaged  in the  process  of  locating  a  merger  and/or
acquisition candidate.

The Company has had recurring  losses from operations  since inception and had a
net capital deficiency at year end, each of which raise substantial doubts about
the  ability of the Company to continue  as a going  concern.  Accordingly,  the
auditors'  report and opinion  included in this  report  contain an  explanatory
paragraph about these uncertainties.

The Company, as a result of the cessation of its business and the failure of its
proposed  acquisitions,  had no operations  during the year; thus, no meaningful
comparison can be made to prior years.

Liquidity  and Capital  Resources:  The Company,  from  inception  has relied on
capital  infusions  from  executive  officers and  directors  and on credit from
vendors.

PART II OTHER INFORMATION

Item 1. Litigation

No material  legal  proceedings to which the Company (or any officer or director
of the Company, or any affiliate or owner of record or beneficially of more than
five percent of the Common Stock,  to  management's  knowledge) is a party or to
which the  property of the  Company is subject is pending  and no such  material
proceeding is known by management of the Company to be contemplated.

Item 2. Change in Securities

This item is not  applicable  to the  Company  for the  period  covered  by this
report.


<PAGE>


Item 3. Defaults Upon Senior Securities

This item is not  applicable  to the  Company  for the  period  covered  by this
report.

Item 4. Submission of Matters to a Vote of Security Holders

There were no  meetings of security  holders  during the period  covered by this
report; thus, this item is not applicable.

Item 5.  Other Information

There is no additional information which the Company is electing to report under
this item at this time.

Item 6. Exhibits and Reports on Form S K

No reports on Form 8 K were filed by the  Company  during the period  covered by
this report.


                                   SIGNATURES

Pursuant to the  requirements of Section 13 or 15(d) of the Securities  Exchange
Act of 1934,  the  registrant  has duly  caused  this report to be signed on its
behalf by the undersigned, thereunto duly authorized this 2nd day of July, 1999.

CASSCO CAPITAL CORPORATION
(Registrant)

By: /s/ Richard Gregory
   -----------------------
   Richard Gregory, President and
   Chief Executive Officer

By: /s/ Richard Gregory
   -----------------------
   Richard Gregory, Chief Financial
   and Accounting Officer and Treasurer