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

                                 July 17, 2006
                                (Date of Report)


                            ALANCO TECHNOLOGIES, INC.
             (Exact name of Registrant as specified in its charter)

                                    0-9437
                            (Commission File No.)

               Arizona                                  86-0220694
      (State or other jurisdiction)         ( IRS Employer Identification No.)

               15575 N 83RD WAY, SUITE 3, SCOTTSDALE, ARIZONA 85260
              (Address of Principal Executive Office)      (Zip Code)

                                  (480)607-1010
              (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 communication pursuant to Rule 425 under the Securities Act
     (17 CFR 230.425)

( ) Soliciting material pursuant to Rule 14a-12 under the Exchange Act
    (17 CRF 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 240.134-4(c))

Item 1.01 Entry into a Material Definitive Agreement
Item 3.02 Unregistered Sales of Equity Securities

On July 14, 2006, the Company completed the sale, in a private offering to
several private and institutional investors, of 240,000 Units consisting of one
share of its Series A Convertible Preferred Stock together with a 5-year warrant
to purchase three shares of the Company's Class A Common Stock at a price of
$.60 per share ("Unit") for a Unit price of $1.71. The Company received $410,400
from the offering. 25% of the Units, or 60,000 Units, were purchased by an
institutional investor with the balance purchased by members of the Company's
Board of Directors. Due to the structure of the offering and Nasdaq stock market
requirements, warrants issued in this offering to members of the Board of
Directors are restricted from being exercised without shareholders' approval,
which shall be requested at the next annual meeting of the Company's
Shareholders.

Item 9.01 Financial Statements and Exhibits

Exhibit 99.1 - Forms of Agreement and Warrant

                                   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.

Date: July 17, 2006                     ALANCO TECHNOLOGIES, INC.
                                        By: /s/ John A Carlson
                                           -------------------
                                           Chief Financial Officer