SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
(Rule 13d-101)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
TO RULE 13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO
RULE 13d-2(a)
(Amendment No. 1)(1)
Nhancement Technologies, Inc.
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(Name of Issuer)
Common Stock, $.01 par value
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(Title of Class of Securities)
65334P104
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(CUSIP Number)
Gerald L. Fishman
Wolin & Rosen, Ltd.
55 West Monroe Street, Suite 3600
Chicago, IL 60603
312.424.0600
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(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
July 31, 2000
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(Date of Event which Requires Filing of This Statement)
If the filing person has previously filed a statement on Schedule 13G to
report the acquisition that is the subject of this Schedule 13D, and is filing
this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the
following box [_].
Note: Schedules filed in paper format shall include a signed original
and five copies of the schedule, including all exhibits. See Rule 13d-7(b)
for other parties to whom copies are to be sent.
(Continued on following pages)
(Page 1 of 8 Pages)
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(1) The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which
would alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
(SC13D-07/99)
<PAGE>
CUSIP No. 65334P104 13D Page 2 of 8 Pages
________________________________________________________________________________
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Rosenthal Collins Equities, L.L.C. FEIN No. 36-4205899
________________________________________________________________________________
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [X]
(b) [_]
See Note A
________________________________________________________________________________
3 SEC USE ONLY
________________________________________________________________________________
4 SOURCE OF FUNDS*
OO -- See Note A
________________________________________________________________________________
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e)
Item 2(d) [_]
Item 2(e) [_]
________________________________________________________________________________
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Illinois
________________________________________________________________________________
7 SOLE VOTING POWER
NUMBER OF 460,335 See Note A
SHARES _________________________________________________________________
8 SHARED VOTING POWER
BENEFICIALLY
460,335 See Note A
OWNED BY
_________________________________________________________________
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 460,335 See Note A
PERSON _________________________________________________________________
10 SHARED DISPOSITIVE POWER
WITH
460,335 See Note A
________________________________________________________________________________
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
460,335 -- See Note A
________________________________________________________________________________
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[X]
See Note A
________________________________________________________________________________
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.16%
________________________________________________________________________________
14 TYPE OF REPORTING PERSON*
BD
________________________________________________________________________________
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
CUSIP No. 65334P104 13D Page 3 of 8 Pages
ITEM 1. SECURITY AND ISSUER
a. Nhancement Technologies, Inc.
6663 Owens Drive
Pleasanton, CA 94588
b. Common Stock, $.01 par value
ITEM 2. IDENTITY AND BACKGROUND
a. Rosenthal Collins Equities, L.L.C. a. Rosenthal Collins Group, L.L.C.,
Sole Member (Leslie Rosenthal,
Managing Member, J. Robert
Collins, Managing Member)
b. 216 West Jackson Boulevard b. 216 West Jackson Boulevard
Suite 400 Suite 400
Chicago, IL 60606 Chicago, IL 60606
c. Registered Broker-Dealer and member c. Sole Member is a Futures
firm of CBOE (CBOE is DEA) Commission Merchant registered
with the Commodity Futures
Trading Commission and clearing
member of various designated
contract markets
d. N/A d. N/A
e. N/A e. N/A
f. Illinois limited liability company f. Illinois limited liability company
ITEM 3. SOURCE AND AMOUNT OF FUNDS FOR OTHER CONSIDERATION
The source of the funds are the personal funds of L. Thomas Baldwin III,
who is a Class C (non-voting, non-managing) Member of Rosenthal Collins Group,
L.L.C. ("RCG"), the Sole Member of the Reporting Person. RCG's capital
contributions to the Reporting Person include amounts which were used to
purchase the shares of the Issuer. The aggregate amount of additional funds used
in making purchases from 2 August 2000 through and including 15 August 2000 for
this Reporting Person (see Note A) was $2,193,378.
<PAGE>
CUSIP No. 65334P104 13D Page 4 of 8 Pages
ITEM 4. PURPOSE OF TRANSACTION
The purpose of the acquisition of securities of the Issuer is as an
investment by L. Thomas Baldwin III, a Class C Member (non-voting,
non-managing) of Rosenthal Collins Group, L.L.C., the Sole Member of the
Reporting Person.
a. Mr. Baldwin has advised that he plans to purchase
additional shares of the Issuer up to as much as 15% of
the total issued and outstanding.
b-j. Mr. Baldwin has advised that he has no present
intentions to engage in or cause any of the matters
listed in these subsections of this Item 4. He has
advised that his present intention is to be and remain
an investor in the Issuer. The timing and amount of
additional purchases, if any, are currently unknown.
ITEM 5. INTEREST AND SECURITIES OF THE ISSUER
a. Shares owned:
(1) Rosenthal Collins Equities, L.L.C. Proprietary Trading
Account 460,335 shares (4.16%) (See Note A)
(2) Rosenthal Collins Group, L.L.C. (See Note A)
(i) L. Thomas Baldwin III -- 171,837 shares (1.6%)
(ii) L. Thomas Baldwin III Living Trust -- 151,430
shares (1.4%)
Total Rosenthal Collins Group, L.L.C. -- 323,267 shares
(2.9%)
(3) L. Thomas Baldwin III -- 73,085 shares (.66%) (See Note
A)
Total Group (See Note A) -- 856,687 shares (7.74%)
b. Voting power:
(1) Rosenthal Collins Equities, L.L.C. (See Note A)
Sole voting power -- 460,335
Shared voting power --- 460,335
Sole dispositive power -- 460,335
Shared dispositive power -- 460,335
<PAGE>
CUSIP No. 65334P104 13D Page 5 of 8 Pages
(2) Rosenthal Collins Group, L.L.C. (See Note A)
Sole voting power -- 323,267
Shared voting power --- 323,267
Sole dispositive power -- 323,267
Shared dispositive power -- 323,267
(3) L. Thomas Baldwin III, individually (See Note A)
Sole voting power -- 73,085
Shared voting power --- 0
Sole dispositive power -- 73,085
Shared dispositive power -- 0
c. Commencing on August 2, 2000, Rosenthal Collins Equities, L.L.C.,
a registered broker/dealer member firm of the Chicago Board
Options Exchange, in its proprietary trading account purchased
additional shares on Nasdaq as follows: 21,000 shares on 2 August
2000 at an average price of $10.00 per share; 23,500 shares on 3
August 2000 at an average price of $9.96 per share; 9,600 shares
on 4 August 2000 at an average price of $10.08 per share; 1,400
shares on 7 August 2000 at an average price of $9.63 per share;
40,700 shares on 8 August 2000 at an average price of $9.08 per
share; 66,600 shares on 9 August 2000 at an average price of
$9.72 per share; 13,200 shares on 10 August 2000 at an average
price of $9.83 per share; 20,300 shares on 11 August 2000 at an
average price of $9.63 per share; 4,100 shares on 14 August 2000
at an average price of $9.38 per share; and 27,500 shares on 15
August 2000 at an average price of $9.39 per share. (See Note A)
Rosenthal Collins Group, L.L.C. received 323,267 shares, 171,837
shares from L. Thomas Baldwin III and 151,430 shares from the L.
Thomas Baldwin III Living Trust as deposits to Mr. Baldwin's
Class C capital account at Rosenthal Collins Group, L.L.C., a
Commodity Futures Trading Commission registered futures
commission merchant. The shares of the Issuer are traded on
Nasdaq and were taken into such capital accounts at $11.125 per
share (before capital haircuts under CFTC Regulations 1.17).
(See Note A)
L. Thomas Baldwin III, individually, purchased 9,400 shares more
than 60 days prior to the event which requires fling of this
statement at an average price of $16 per share on Nasdaq. On or
about May 19, 2000, Mr. Baldwin purchased $500,000 principal
amount of the Issuer's 8% Convertible Debentures due May 30, 2000
("Debenture"). The Debenture is convertible at any time at the
option of the holder at a sliding scale conversion price. On
August 8, 2000, Mr. Baldwin sent notice to the Issuer of his
election to convert the Debenture into 63,685 shares, at a
conversion price of $7.85 per share. (See Note A)
d. N/A
e. N/A
<PAGE>
CUSIP No. 65334P104 13D Page 6 of 8 Pages
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER
See Note A with respect to the relationships among the persons named in
Item 2 and with respect to the securities of the Issuer.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
1. There are no materials relating to the borrowing of funds to
finance the acquisition, as disclosed in Item 3.
2. There are no written agreements relating to the acquisition of
Issuer control, liquidation, sale of assets, merger or change
in business or corporate structure or any other matter, as
disclosed in Item 4.
3. There are no written agreements relating to the transfer of
voting of the securities, finders' fees, joint ventures,
options, puts, calls, guarantees of loans, guarantees against
loss of profit, or the giving or withholding of any proxy, as
disclosed in Item 6.
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Date: August 18, 2000.
ROSENTHAL COLLINS EQUITIES, L.L.C.
By: Rosenthal Collins Group, L.L.C.
By: /s/ Leslie Rosenthal
--------------------------------------
Leslie Rosenthal, Managing Member
Attention. Intentional misstatements or omissions of fact constitute federal
criminal violations (see 18 U.S.C. 1001).
<PAGE>
CUSIP No. 65334P104 13D Page 7 of 8 Pages
NOTE A
This Schedule 13D represents ownership by the Reporting Person and
other members of the "group" as described below of an aggregate of 856,687
shares of common stock of the Issuer (7.74%). L. Thomas Baldwin III is a
non-voting, non-managing member of Rosenthal Collins Group, L.L.C., an Illinois
limited liability company ("RCG"). RCG is registered with the Commodity Futures
Trading Commission as a futures commission merchant and is a clearing member of
all major principal futures exchanges in the United States and elsewhere. As
such, RCG is required to meet and maintain significant levels of adjusted net
capital to comply with CFTC and exchange clearing requirements. As of June 30,
2000, RCG's adjusted net capital (unaudited) was $34,382,657. Reference is
hereby made to the public portions of RCG's Forms 1-FR as filed with the
Commodity Futures Trading Commission, which forms are publicly available under
FOIA for a complete statement of the financial condition of RCG.
On June 21, 2000, L. Thomas Baldwin III and the L. Thomas Baldwin III
Living Trust (Mr. Baldwin is a Class C non-voting and non-managing Member of
RCG), deposited shares of the Issuer with RCG as part of his capital account at
RCG. Such shares, after appropriate haircuts, are held and maintained by RCG (in
a custody account for its benefit at the Harris Trust & Savings Bank, N.A.,
Chicago, Illinois) and is deemed capital of RCG for regulatory purposes.
Accordingly, RCG has full legal control over such shares. Mr. Baldwin could
always direct RCG to sell the shares, which accommodation RCG would be willing
to accommodate subject, of course, to all the various capital requirements with
which RCG must comply. Moreover, as an accommodation, RCG would be willing to
defer to Mr. Baldwin with respect to the voting of such shares. Hence, RCG in
Item 5.b has listed the shares deposited with it as owned by it, and it has
listed voting and dispositive power as shared with Mr. Baldwin.
<PAGE>
CUSIP No. 65334P104 13D Page 8 of 8 Pages
Rosenthal Collins Equities, L.L.C. ("RCE") is an Illinois limited
liability company registered as a broker/dealer which is a member firm of the
Chicago Board Options Exchange, its designated examining authority. RCE has no
customers and trades on a proprietary basis only. RCE is wholly-owned by
Rosenthal Collins Group, L.L.C. The shares of the Issuer purchased by RCE, as
disclosed in Item 6.c above, were purchased by RCE at the request and as an
accommodation to L. Thomas Baldwin III. As a result, RCE is the record and
beneficial owner of such shares. Mr. Baldwin could always direct RCE to sell the
shares, which accommodation RCE would be willing to accommodate, subject, of
course, to the capital requirements with which RCE must comply. Moreover, as an
accommodation, RCE would be willing to defer to Mr. Baldwin with respect to the
voting of such shares. Hence, Item 5.b lists shared voting and dispositive power
for all shares of the Issuer owned by RCE as shared with Mr. Baldwin.
In addition, Mr. L. Thomas Baldwin III, individually, purchased 9,400
shares of the Issuer more than 60 days prior to the event which requires filing
of this statement on Nasdaq, at an average of $16 per share. Moreover, on or
about May 19, 2000, Mr. Baldwin purchased $500,000 principal amount of the
Issuer's 8% Convertible Debentures due May 30, 2000 ("Debenture"). The Debenture
is convertible at any time at the option of the holder at a sliding scale
conversion price. On August 8, 2000, Mr. Baldwin sent notice to the Issuer of
his election to convert the Debenture into 63,685 shares, at a conversion price
of $7.85 per share. Mr. Baldwin, of course, has and will have sole dispositive
and voting power over such shares.
While the shares of the Issuer held by RCG and RCE are owned of record
and are under the total legal control of those entities, RCG and RCE, solely for
purposes of the shares of the Issuer and not otherwise, should be deemed
affiliates of L. Thomas Baldwin III and Mr. Baldwin should be deemed de facto
beneficial owner of all such shares, notwithstanding that all such shares are
subject to the risks and requirements, regulatory and market, of RCG and RCE,
respectively.
