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- ---------------- U.S. SECURITIES AND EXCHANGE COMMISSION ----------------------------
|F O R M 3| Washington, D.C. 20549 | OMB APPROVAL |
- ---------------- |--------------------------|
INITIAL STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP |OMB Number 3235-0104|
|Expires: September 30,1998|
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, |Estimated ave. burden |
Section 17(a) of the Public Utility Holding Company Act of 1935 or |hours per response.....0.5|
(Print or Type Respones) Section 30(f) of the Investment Company Act 1940 ----------------------------
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|1.Name and Address of Reporting Person* |2.Date of Event |4.Issuer Name and Ticker or Trading Symbol |
| | Requiring Statement | |
| Gainor Raymond D. | (Month/Day/Year) | Matria Healthcare, Inc. (MATR) |
|----------------------------------------| |-----------------------------------------------------------------|
| (Last) (First) (MI)| |5.Relationship of Reporting Person to |6.If Amendment, Date of |
| | 01/19/1999 | Issuer (Check all Applicable) | Original (Mon/Day/Year)|
| | | | |
| |-----------------------| Director X 10% Owner | / / |
| 350 Scott Point Drive |3.IRS or Soc. Sec. No. |--- --- |-------------------------|
|----------------------------------------| of Reporting Person | |7.Individual or Joint/ |
| (Street) | (Voluntary) | Officer Other | Group Filing |
| | |---(give title below)---(Specify below)| (Check Applicable Line)|
| | | | X Form filed by One |
| | | |--- Reporting Person |
| Salt Spring British Columbia | | | Form filed by More |
| Island Canada V8K 2R2| | |--- than Reporting Person|
|----------------------------------------------------------------------------------------------------------------------------------|
| (City) (State) (Zip) | TABLE I - Non-Derivative Securities Beneficially Owned |
|----------------------------------------------------------------------------------------------------------------------------------|
|1.Title of Security (Instr. 4) |2.Amount of Securities |3.Ownership |4.Nature of Indirect Beneficial |
| | Beneficially Owned | Form: | Ownership (Instr. 5) |
| | (Instr. 4) | Direct (D) | |
| | | or Indirect | |
| | | (I)(Instr.5)| |
|------------------------------------------|-----------------------------|--------------|------------------------------------------|
|<S> |<C> |<C> |<C> |
|------------------------------------------|-----------------------------|--------------|------------------------------------------|
| | | | |
| 8% Series B Redeemable Preferred Stock | 35,000 shares | I | By LLC |
|----------------------------------------------------------------------------------------------------------------------------------|
Reminder: Report on a separate line for each class securities owned directly or indirectly.
*If the form is filed by more than one reporting person, see Instruction 5(b)(v).
(Over)
Potential persons who are to respond to the collection of information conatined in this form are not required SEC 1473 (7-97)
to respond unless the form displays a currently valid OMB control number.
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FORM 3 (continued) TABLE II - Derivative Securities Beneficially Owned
(e.g., puts, calls, warrants, options, convertible security)
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|1.Title of Derivative |2.Date Exercisable |3.Title and Amount of Underlying |4.Conversion |5.Ownership|6.Nature of |
| Security (Instr. 4) | and Expiration | Derivative Security (Instr. 4) | or | Form of | Indirect |
| | Date | | Exercise | Deriv- | Beneficial |
| | (Month/Day/Year) | | Price of | ative | Ownership |
| |----------------------|--------------------------------------| Derivative | Security:| (Instr. 5) |
| |Date |Expiration| |Amount or| Security | Direct | |
| |Exercisable|Date | Title |Number | | (D) or | |
| | | | |of Shares| | Indirect | |
| | | | | | | (I) | |
| | | | | | | (Instr.5)| |
|--------------------------|-----------|----------|----------------------------|---------|-------------|-----------|---------------|
|<S> |<C> |<C> |<C> |<C> |<C> |<C> |<C> |
|--------------------------|-----------|----------|----------------------------|---------|-------------|-----------|---------------|
|4% Series A Convertible | 01/19/1999|01/19/2009| Common Stock |2,222,222|$4.50 | I | By LLC |
|Preferred Stock (right to | | | | | | | |
|convert) | | | | | | | |
|--------------------------|-----------|----------|----------------------------|---------|-------------|-----------|---------------|
|Warrants to Purchase | 01/19/1999|01/19/2009| Common Stock |4,000,000|$3.00 | I | By LLC |
|Common Stock (right to | | | | | | | |
|buy) | | | | | | | |
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Explanation of Responses:
Explanatory Note: R. Donald Gainor is a member of the management committee of Gainor Medical Management, LLC ("LLC"). LLC owns
in excess of 10% of issuer's common stock on a when exercised or converted, fully-diluted basis. LLC is a manager-managed limited
liability company the management of which is vested in a three-person management committee. As a member of the management committee
of LLC, Mr. Gainor shares the power to direct the voting and disposition of issuer's securities held by LLC. Mr. Gainor
disclaims beneficial ownership of all the securities reported herein.
**Intentional misstatements or omissions of facts constitute Federal /s/ Raymond D. Gainor 01/27/1999
Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a). -------------------------------------------- ----------
**Signature of Reporting Person Date
Note: File three copies of this form, one of which must be manually signed.
If space provided is insufficient, see Instruction 6 for procedure.
Potential persons who are to respond to the collection of information contained in this form are not
required to respond unless the form displays a currently valid OMB Number. PAGE: 2
SEC 1473 (7-97)
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