SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13G
UNDER THE SECURITIES EXCHANGE ACT OF 1934
NETGAIN DEVELOPMENT, INC
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(Name of Issuer)
COMMON STOCK, PAR VALUE $.0001 PER SHARE
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(Title of Class of Securities)
154708 101
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(CUSIP Number)
OCTOBER 26, 1999
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(Date of Event Which Requires Filing of this Statement)
Check the appropriate box to designate the rule pursuant to which this
Schedule is filed:
[ ] Rule 13d-1(b)
|X| Rule 13d-1(c)
[ ] Rule 13d-1(d)
<PAGE>
SCHEDULE 13G
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CUSIP NO. 154708 101
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- ----------- -------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
netbreeders.com LLC
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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 CITIZENSHIP OR PLACE OF ORGANIZATION
New York
- ----------------------------- --------- ---------------------------------------
5 SOLE VOTING POWER
NUMBER OF 3,250,000 (1)
SHARES
BENEFICIALLY -------- ----------------------------------------
OWNED BY 6 SHARED VOTING POWER
EACH
REPORTING 0
PERSON
WITH: -------- ----------------------------------------
7 SOLE DISPOSITIVE POWER
3,250,000 (1)
-------- ----------------------------------------
8 SHARED DISPOSITIVE POWER
0
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9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,250,000 (1)
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10 CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
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11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
18.3%(2)
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12 TYPE OF REPORTING PERSON*
OO
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SCHEDULE 13G
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(1) Includes warrants to purchase 750,000 shares of Common Stock exercisable
commencing upon the earlier of the date the Issuer (i) receives $30,000,000 in
equity investments or (ii) reports $40,000,000 in shareholders' equity.
(2) Calculated on the basis of 17,020,998 shares of Common Stock outstanding on
December 15, 1999.
Pages 2 of 5 Pages
<PAGE>
ITEM 1(A). NAME OF ISSUER:
NetGain Development, Inc.
ITEM 1(B). ADDRESS OF ISSUER'S PRINCIPAL EXECUTIVE OFFICES:
152 West 57th Street, 40th Floor
New York, New York 10019
ITEM 2(A). NAME OF PERSON FILING:
netbreeders.com LLC
ITEM 2(B). ADDRESS OF PRINCIPAL BUSINESS OFFICE OR, IF NONE, RESIDENCE:
417 Fifth Avenue, 8th Floor
New York, New York 10019
ITEM 2(C). CITIZENSHIP: SEE ITEM 4 ON COVER PAGE
New York
ITEM 2(D). TITLE OF CLASS OF SECURITIES:
Common Stock, $.0001 par value per share
ITEM 2(E). CUSIP NUMBER:
154708 101
ITEM 3. IF THIS STATEMENT IS FILED PURSUANT TO RULES 13D-1(B) OR 13D-2
(B) OR (C), CHECK WHETHER THE PERSON FILING IS A:
Not applicable.
Pages 3 of 5 Pages
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ITEM 4. OWNERSHIP:
Netbreeders.com LLC
(a) Amount Beneficially Owned: 3,250,000 SHARES. (1)
-----------------
(b) Percent of Class: 18.3% (2)
-----
(c) Number of shares as to which such person has:
(i) Sole power to vote or to direct to vote 3,250,000 (1)
---------
(ii) Shared power to vote or to direct the vote 0
---------
(iii) Sole power to dispose or to direct the
disposition of 3,250,000 (1)
---------
(iv) Shared power to dispose or to direct
disposition of 0
--------
ITEM 5. OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS:
If this statement is being filed to report the fact that as of the
date hereof the reporting person has ceased to be the beneficial
owner of more than five percent of the class of securities, check the
following [ ].
ITEM 6. OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER PERSON:
Not applicable.
ITEM 7. IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY WHICH ACQUIRED
THE SECURITY BEING REPORTED ON BY THE PARENT HOLDING COMPANY:
Not applicable.
ITEM 8. IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE GROUP:
Not applicable.
ITEM 9. NOTICE OF DISSOLUTION OF GROUP:
Not applicable.
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(1) Includes warrants to purchase 750,000 shares of Common Stock exercisable
commencing upon the earlier of the date the Issuer (i) receives $30,000,000 in
equity investments or (ii) reports $40,000,000 in shareholders' equity.
(2) Calculated on the basis of 17,020,998 shares of Common Stock outstanding on
December 15, 1999.
Pages 4 of 5 Pages
<PAGE>
ITEM 10(A). THE FOLLOWING CERTIFICATION SHALL BE INCLUDED IF THE STATEMENT IS
FILED PURSUANT TOSS.240.13d-1(b):
Not applicable.
ITEM 10(B). THE FOLLOWING CERTIFICATION SHALL BE INCLUDED IF THE STATEMENT IS
FILED PURSUANT TO SS.240.13d-1(c):
By signing below netbreeders.com LLC certifies, to the best of its
knowledge and belief, the securities referred to above were not
acquired and are not held for the purpose of or with the effect of
changing or influencing the control of the issuer of the securities
and were not acquired and are not held in connection with or as a
participant in any transaction having that purpose or effect.
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: December 1, 1999.
NETBREEDERS.COM LLC, a New York
limited liability company
By: /s/ DANIEL PFEFFER
----------------------
Name: DANIEL PFEFFER
Title: PRESIDENT
