<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 1 )*
INTELISPAN, INC.
(Name of Issuer)
Common Stock, par value $.0001 per share
(Title of Class of Securities)
458 150 109
(CUSIP Number)
Joseph P. Wynne
Commonwealth Associates, L.P.
830 Third Avenue
New York, New York 10022
(212) 829-5839
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
September 12, 2000
(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 which 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 for other parties
to whom copies are to be sent.
(Page 1 of 13)
---------------------
*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).
<PAGE> 2
<TABLE>
<CAPTION>
SCHEDULE 13D
<S> <C>
---------------------------------------------------------- -------------------- ----------------------------------------------------
CUSIP NO. 458 150 109 PAGE 2 OF 13 PAGES
---------------------------------------------------------- -------------------- ----------------------------------------------------
1 NAME OF REPORTING PERSON
SS. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
COMVEST CAPITAL PARTNERS LLC (13-4068973)
---------- -------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [ ]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
WC
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5 CHECK BOX OF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(c) [ ]
---------- -------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
---------- -------------------------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY EACH 9,441,667
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON WITH 10 SHARED DISPOSITIVE POWER
9,441,667
---------- -------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
9,441,667
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
---------- -------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
8.6%
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14 TYPE OF REPORTING PERSON*
OO
---------- -------------------------------------------------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT*
</TABLE>
<PAGE> 3
<TABLE>
SCHEDULE 13D
<S> <C>
---------------------------------------------------------- -------------------- ----------------------------------------------------
CUSIP NO. 458 150 109 PAGE 3 OF 13 PAGES
---------------------------------------------------------- -------------------- ----------------------------------------------------
1 NAME OF REPORTING PERSON
SS. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
COMMONWEALTH ASSOCIATES, L.P. (13-3467952)
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [ ]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
OO
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5 CHECK BOX OF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(c) [ ]
---------- -------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
NEW YORK
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NUMBER OF 7 SOLE VOTING POWER
SHARES 8 SHARED VOTING POWER
BENEFICIALLY 7,907,321
OWNED BY EACH 9 SOLE DISPOSITIVE POWER
REPORTING 10 SHARED DISPOSITIVE POWER
PERSON WITH 7,907,321
---------- -------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
7,907,321
---------- -------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
---------- -------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.2%
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14 TYPE OF REPORTING PERSON*
PN
---------- -------------------------------------------------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT*
</TABLE>
<PAGE> 4
<TABLE>
SCHEDULE 13D
<S> <C>
---------------------------------------------------------- -------------------- ----------------------------------------------------
CUSIP NO. 458 150 109 PAGE 4 OF 13 PAGES
---------------------------------------------------------- -------------------- ----------------------------------------------------
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1 NAME OF REPORTING PERSON
SS. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
COMMONWEALTH ASSOCIATES MANAGEMENT CORP. (13-3468747)
---------- -------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [ ]
---------- -------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
---------- -------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
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5 CHECK BOX OF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(c) [ ]
---------- -------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
NEW YORK
---------- -------------------------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES 8 SHARED VOTING POWER
BENEFICIALLY 7,907,321
OWNED BY EACH 9 SOLE DISPOSITIVE POWER
REPORTING 10 SHARED DISPOSITIVE POWER
PERSON WITH 7,907,321
---------- -------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
7,907,321
---------- -------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
---------- -------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.2%
---------- -------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
---------- -------------------------------------------------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT*
</TABLE>
<PAGE> 5
<TABLE>
SCHEDULE 13D
<S> <C>
---------------------------------------------------------- -------------------- ----------------------------------------------------
CUSIP NO. 458 150 109 PAGE 5 OF 13 PAGES
---------------------------------------------------------- -------------------- ----------------------------------------------------
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1 NAME OF REPORTING PERSON
SS. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
MICHAEL S. FALK
---------- -------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [ ]
---------- -------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
---------- -------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
PF
---------- -------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX OF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(c) [ ]
---------- -------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
---------- -------------------------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES 4,096,934
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY EACH 17,348,988
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON WITH 4,096,934
10 SHARED DISPOSITIVE POWER
17,348,988
---------- -------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
21,445,922
---------- -------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
---------- -------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
19.6%
---------- -------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
---------- -------------------------------------------------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT*
</TABLE>
<PAGE> 6
Page 6 of 13 pages
Item 1. Security and Issuer.
This statement relates to the common stock, par value $.0001 per share
("Common Stock") of Intelispan, Inc. (the "Issuer"). The address of the Issuer's
principal executive office is 1720 Windward Concourse, Suite 100, Alpharetta,
Georgia 30005.
Item 2. Identity and Background.
This statement is filed jointly by ComVest Capital Partners
LLC ("ComVest"), a limited liability company organized under the laws of
Delaware whose principal business is investing in securities, Commonwealth
Associates, L.P. ("Commonwealth"), a limited partnership organized under the
laws of New York, whose principal business is venture capital and merchant
banking, Commonwealth Associates Management Corp. ("CAMC"), a corporation
organized under the laws of New York and the corporate general partner of
Commonwealth, and Michael S. Falk ("Falk"). ComVest, Commonwealth, CAMC and Falk
are the "Reporting Persons."
Robert Priddy ("Priddy"), Keith Rosenbloom ("Rosenbloom") and Basil
Ascuitto ("Ascuitto") are directors, and Falk is Chairman, of CAMC. Mr. Falk is
also the principal stockholder of CAMC. The sole officer of CAMC is Joseph
Wynne, Chief Financial Officer. The managers of ComVest are Falk, Priddy, and
Rosenbloom.
All of the individuals identified in this Item 2 are United States
citizens. The business address for all of the Reporting Persons and other
individuals identified in this Item 2, other than Priddy is 830 Third Avenue,
New York, New York 10022. The business address for Priddy is RMC Capital, LLC,
1640 Powers Ferry, Suite 125, Marietta, Georgia 30067.
During the last five years, none of the individuals or entities
identified in this Item 2 has been convicted in a criminal proceeding (excluding
traffic violations and similar misdemeanors) or been a party to a civil
proceeding of a judicial or administrative body of competent jurisdiction and as
a result of such proceeding, was or is subject to a judgment, decree or final
order enjoining future violations of, or prohibiting or mandating activities
subject to, federal or state securities laws of finding any violation with
respect to such laws.
Item 3. Source and Amount of Funds or Other Consideration.
ComVest and certain associated parties of ComVest made bridge loans to
the Issuer. In connection therewith, ComVest received warrants to purchase
9,250,000 shares of Common Stock at an exercise price of $.01 per share. ComVest
exercised these warrants and purchased all 9,250,000 shares for $92,500 in
December 1999. ComVest's funds for the bridge loans were provided by its working
capital. ComVest sold its bridge loans to Mr. Priddy who invested the payment
proceeds therefrom in the Private Placement, as noted below.
<PAGE> 7
Page 7 of 13 pages
In a private placement (the "Placement") which closed in December 1999,
the Issuer sold units ("Units") at a price of $100,000 per unit. Each Unit
consisted of 133,333 shares of Common Stock and warrants to purchase 66,667
shares of Common Stock at an exercise price of $.75 per share (the "Placement
Warrants"). Commonwealth acted as placement agent to the Issuer in connection
with the Placement pursuant to a Placement Agency Agreement dated December 13,
1999 (the "Agency Agreement").
As compensation for services rendered to the Issuer in connection with
the Placement, Commonwealth was issued 60,000 shares of Common Stock (the
"Advisory Shares") and seven-year warrants to purchase Common Stock at an
exercise price of $.75 per share (the "Agents Warrants"). Certain of the Agents
Warrants were distributed by Commonwealth to certain of its employees, including
Falk, Rosenbloom, Asciutto and Wynne. Commonwealth disclaims beneficial
ownership of the Agents Warrants it distributed to other persons.
ComVest, Falk (together with a trust whose securities Falk is the
beneficial owner of), Priddy, Rosenbloom, Ascuitto and Wynne were investors in
the Placement in the respective amounts of $100,000, $425,000, $1,000,000,
$50,000, $20,000 and $25,000. The source of the funds for the purchases by Falk,
Priddy, Ascuitto and Wynne were their respective personal funds. The source of
the funds for the purchase by ComVest was the working capital of ComVest.
Subsequent to the Placement, the Issuer offered all holders of Agents
Warrants and Placement Warrants the right to exercise these warrants on a
cashless basis at an exercise price of $.50 per share and a deemed market value
of $4.00 per share of Common Stock. On September 12, 2000, all of the Placement
Warrants and Agents Warrants held by the Reporting Persons and the other persons
identified in Item 2 above were exercised by the holders thereof through the
cashless exercise of these warrants pursuant to the terms of the Issuer's offer.
Item 4. Purpose of Transaction.
The Agents Warrants and Advisory Shares were acquired by the Reporting
Persons as compensation for services rendered to the Issuer solely for
investment purposes and not for the purpose of acquiring control of the Issuer.
The Units (including the Common Stock and Placement Warrants) were acquired to
make a profitable investment and not for the purpose of acquiring control of the
Issuer.
Pursuant to the Agency Agreement, upon the first closing of the
Placement, Commonwealth was granted the right to designate four of the seven
directors of the Issuer. On February 7, 2000, three Commonwealth designees were
appointed to the Board, including Mr. Falk. Commonwealth waived its right to
appoint the fourth director.
Other than as set forth above, the Reporting Persons have no present
plans or proposals which relate to, or could result in, any of the matters
referred to in paragraphs (a) through (j) of Item 4 of Schedule 13D. The
Reporting Persons may, at any time and from time to time, renew
<PAGE> 8
Page 8 of 13 pages
or reconsider their position and formulate plans or proposals with respect
thereto, but have no present intention of doing so.
Item 5. Interest in Securities of the Issuer.
(a) ComVest is the beneficial owner of an aggregate of 9,441,667 shares
of Common Stock, representing approximately 8.6% of the issued and outstanding
shares of Common Stock of the Issuer.
Commonwealth is the beneficial owner of an aggregate of 7,907,321
shares of Common Stock, representing approximately 7.2% of the issued and
outstanding shares of Common Stock of the Issuer.
CAMC, as the general partner of Commonwealth, may be deemed to
beneficially own the 7,907,321 shares of Common Stock owned by Commonwealth,
representing approximately 7.2% of the issued and outstanding shares of Common
Stock of the Issuer.
Falk may be deemed to be the beneficial owner of an aggregate of
21,445,922 shares of Common Stock, representing approximately 19.6% of the
issued and outstanding shares of Common Stock of the Issuer. In addition to the
7,907,321 and 9,441,667 shares beneficially owned respectively by Commonwealth
and ComVest, which Falk may be deemed to beneficially own, Falk (together with a
trust whose securities Falk is the beneficial owner of) beneficially owns an
additional 4,096,934 shares of Common Stock.
Priddy is the beneficial owner of an aggregate of 1,916,666 shares of
Common Stock, representing approximately 1.8% of the issued and outstanding
shares of Common Stock of the Issuer.
Rosenbloom is the beneficial owner of an aggregate of 1,044,380 shares
of Common Stock, representing approximately one percent of the issued and
outstanding shares of Common Stock of the Issuer.
Ascuitto is the beneficial owner of an aggregate of 112,624 shares of
Common Stock, representing less than one percent of the issued and outstanding
shares of Common Stock of the Issuer.
Wynne is the beneficial owner of an aggregate of 140,144 shares of
Common Stock, representing less than one percent of the issued and outstanding
shares of Common Stock of the Issuer.
(b) Number of shares as to which each such person has:
<PAGE> 9
Page 9 of 13 pages
(1) Sole power to vote or to direct the vote, and sole power to dispose
or direct the disposition of:
<TABLE>
<CAPTION>
Name Number of Shares
---- ----------------
<S> <C>
Michael S. Falk 4,096,934 shares
Robert Priddy 1,916,666 shares
Keith Rosenbloom 1,044,380 shares
Basil Ascuitto 112,624 shares
Joseph Wynne 140,144 shares
</TABLE>
(2) Shared power to vote or to direct the vote, and shared power to
dispose or direct the disposition of:
(A) Commonwealth, CAMC and Falk may be deemed to share such
voting and disposition powers with respect to Commonwealth's
7,907,321 shares.
(B) ComVest and Falk may be deemed to share such voting and
disposition powers with respect to ComVest's 9,441,667 shares.
(c) On September 12, 2000 warrants to purchase Common Stock were
exercised pursuant to the cashless exercise option offered by the Issuer
(described above) as follows:
<TABLE>
<CAPTION>
Shares Received
Holder Upon Exercise
------ -------------
<S> <C>
ComVest 58,334
Commonwealth 7,847,321
Falk 3,530,269
Priddy 583,336
Rosenbloom 977,713
Ascuitto 85,957
Wynne 106,811
</TABLE>
(d) Not applicable.
(e) Not applicable.
Item 6. Contracts Arrangements, Understandings or Relationships with
Respect to Securities of the Issuer.
Each investor who purchased securities in the Placement, including
ComVest, Falk, Priddy, Rosenbloom, Ascuitto and Wynne, agreed not to sell,
transfer or otherwise dispose of any securities included in the Units sold in
the Placement for one year following the final closing of the Placement, and
thereafter not to sell, transfer or otherwise dispose of more than 25% of such
securities on a cumulative basis during each subsequent 90-day period thereafter
(such 24-
<PAGE> 10
Page 10 of 13 pages
month period referred to as the "Lock-Up Period"). Furthermore, such investors
agreed that if the Issuer undertakes certain private or public offerings (a
"Qualified Offering") during the Lock-Up Period, they will not sell, transfer or
otherwise dispose of their securities for such period of time following such
Qualified Offering, not to exceed 12 months, as the managing underwriter or
placement agent of the Qualified Offering may request, provided Commonwealth
agrees.
Item 7. Material to be Filed as Exhibits.
(i) Joint Filing Agreement, as required by Rule 13d-1 under the
Securities Exchange Act of 1934.
<PAGE> 11
Page 11 of 13 pages
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.
Dated: September 19, 2000 ComVest Capital Partners LLC
By: /s/ Michael S. Falk
Name: Michael S. Falk
Title: Manager
Dated: September 19, 2000 Commonwealth Associates, L.P.
By: Commonwealth Associates Management Corp.,
its general partner
By: /s/ Joseph P. Wynne
Name: Joseph P.Wynne
Title: Chief Financial Officer
Dated: September 19, 2000 Commonwealth Associates Management Corp.
By: /s/ Joseph P. Wynne
Name: Joseph P. Wynne
Title: Chief Financial Officer
Dated: September 19, 2000 /s/ Michael S. Falk
Michael S. Falk
<PAGE> 12
Page 12 of 13 pages
EXHIBIT INDEX
1. Joint Filing Agreement
