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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 1)*
b2bstores.com, Inc.
________________________________________________________________________________
(Name of Issuer)
Common Stock, Par Value $0.01 Per Share
________________________________________________________________________________
(Title of Class of Securities)
11776S 10.7
_______________________________________________________________
(CUSIP Number)
Alan Schoenbaum, Esq.
Akin, Gump, Strauss, Hauer & Feld LLP
300 Convent, Suite 1500
San Antonio, Texas, Texas 78207
210-281-7000
________________________________________________________________________________
(Name, Address and Telephone Number of Person Authorized to Receive Notices and
Communications)
March 14, 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 (S)(S)240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the
following box [_].
Note: Schedules filed in paper format shall include a signed original and five
copes of the schedule, including all exhibits. See(S)240.13d-7 for other parties
to whom copies are to be sent.
* 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 ("Act") 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>
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SCHEDULE 13D
CUSIP NO. 11776S 10.7
-----------------
- ------------------------------------------------------------------------------
NAMES OF REPORTING PERSONS
1 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only).
Enviro-Clean of America, Inc.
Federal ID Number: 38-0386415
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
2 (a) [_]
(b) [_]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS (See Instructions)
4
Not Applicable
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Nevada
- ------------------------------------------------------------------------------
SOLE VOTING POWER 1,000,000
7
NUMBER OF
SHARES -----------------------------------------------------------
SHARED VOTING POWER -0-
BENEFICIALLY 8
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER 1,000,000
9
REPORTING
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER -0-
WITH 10
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
1,000,000
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
12 [ ]
(See Instructions)
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
12.5%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON (See Instructions)
14
CO
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
<PAGE>
===============================================================================
SCHEDULE 13D
CUSIP NO. 11776S 10.7
-----------------
- ------------------------------------------------------------------------------
NAMES OF REPORTING PERSONS
1 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only).
Richard Kandel
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
2 (a) [_]
(b) [_]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS (See Instructions)
4
Not Applicable
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
United States Citizen
- ------------------------------------------------------------------------------
SOLE VOTING POWER 1,066,666
7
NUMBER OF
SHARES -----------------------------------------------------------
SHARED VOTING POWER 1,166,667
BENEFICIALLY 8
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER 1,066,666
9
REPORTING
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER 1,166,667
WITH 10
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
2,233,333 (1)
- ------------------------------------------------------------------------------
CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
12
(See Instructions)
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
27.8%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON (See Instructions)
14
IN
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
(1) Includes 100,000 shares held by Kandel & Son Profit Sharing Plan, of
which Richard Kandel is the trustee; 66,667 shares held by Mint Corp. of New
York, a company which is 50% owned by Richard Kandel, and 1,000,000 shares held
by Enviro-Clean of America, Inc., a company in which Richard Kandel is Chairman
of the Board, and the majority shareholder. Richard Kandel disclaims beneficial
ownership of these securities except to the extent of his pecuniary interest
therein.
<PAGE>
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SCHEDULE 13D
CUSIP NO. 11776S 10.7
-----------------
- ------------------------------------------------------------------------------
NAMES OF REPORTING PERSONS
1 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only).
Steven Etra
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
2 (a) [_]
(b) [_]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS (See Instructions)
4
Not Applicable
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
United States Citizen
- ------------------------------------------------------------------------------
SOLE VOTING POWER 190,667
7
NUMBER OF
SHARES -----------------------------------------------------------
SHARED VOTING POWER 1,015,167
BENEFICIALLY 8
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER 190,667
9
REPORTING
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER 1,015,167
WITH 10
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
1,205,834 (2)
- ------------------------------------------------------------------------------
CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ]
12
(See Instructions)
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
15.0%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON (See Instructions)
14
IN
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
(2) Includes 10,667 shares held by SRK Associates LLC, a company controlled
by Steven Etra, 1,000 shares owned by Lances Property Development Pension Plan,
50% owned by Steven Etra, 1,000,000 shares of Enviro-Clean of America, Inc. a
company in which Steven Etra is a minority shareholder and a director, and 3,500
shares held by Gemini Capital LLC, a company in which Steven Etra is secretary,
director, and minority shareholder. Steven Etra disclaims beneficial ownership
of these securities except to the extent of his pecuniary interest therein.
<PAGE>
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SCHEDULE 13D
CUSIP NO. 11776S 10.7
-----------------
- ------------------------------------------------------------------------------
NAMES OF REPORTING PERSONS
1 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only).
Randall Davis
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
2 (a) [_]
(b) [_]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS (See Instructions)
4
Not Applicable
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
United States Citizen
- ------------------------------------------------------------------------------
SOLE VOTING POWER 333,333
7
NUMBER OF
SHARES -----------------------------------------------------------
SHARED VOTING POWER 1,000,000
BENEFICIALLY 8
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER 333,333
9
REPORTING
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER 1,000,000
WITH 10
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
1,333,333 (3)
- ------------------------------------------------------------------------------
CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [_]
12
(See Instructions)
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
16.6%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON (See Instructions)
14
IN
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
(3) Includes 1,000,000 shares held by Enviro-Clean of America, Inc., of
which Randall Davis is a minority shareholder, President, and a Director.
Randall Davis disclaims beneficial ownership of these securities except to the
extent of his pecuniary interest therein.
<PAGE>
SCHEDULE 13D
Item 1. Security and Issuer.
This schedule relates to the common stock, $ 0.01 par value per share
("Common Stock") of b2bstores.com, Inc. (the "Issuer"), a Delaware corporation.
The Issuer has its principal executive office at 249 East Ocean Boulevard, Suite
620, Long Beach, California 90802.
Item 2. Identity and Background.
(a)-(b) Name and addresses of the reporting persons:
Enviro-Clean of America, Inc., 211 Park Avenue, Hicksville, New York
11801.
Richard Kandel, 211 Park Avenue, Hicksville, New York 11801.
Randall Davis, 1023 Morales, San Antonio, Texas 78207.
Steven Etra, 5830 57th Street, Maspeth, New York 11378
Enviro-Clean of America, Inc., Richard Kandel, Randall Davis, and
Steven Etra are collectively referred to as the "Reporting Persons."
(c) Enviro-Clean is a company, organized under the laws of the State of
Nevada, which is principally engaged in the sanitary product
manufacturing and supply business.
Richard Kandel
Employer: Enviro-Clean of America, Inc.
Principal business: sanitary product manufacturing and supply
Address: 211 Park Avenue, Hicksville, New York 11801
Randall Davis
Employer: Enviro-Clean of America, Inc.
Principal business: sanitary product manufacturing and supply
Address: 1023 Morales, San Antonio, Texas 78207
Steven Etra
Employer: Manufacturer's Corrugated Box Co., Inc.
Principal business: Manufacturing
Address: 5830 57th Street, Maspeth, New York 11378
(d)-(e) During the last five years, the Reporting Persons have not been
convicted in a criminal proceeding (excluding traffic violations or similar
misdemeanors) nor have any been a party to a civil proceeding of a judicial or
administrative body of competent jurisdiction which resulted in a judgment,
decree or final order enjoining future violations of, or prohibiting or
mandating activities subject to, federal or state securities laws or finding any
violations with respect to such laws.
<PAGE>
(f) Citizenship.
Richard Kandel, Randall Davis, and Steven Etra are United States
citizens. Enviro-Clean of America is a corporation formed under the laws of the
State of Nevada.
Item 3. Source and Amount of Funds or Other Consideration.
Not Applicable
Item 4. Purpose of the Transaction.
Enviro-Clean of America, Inc. ("Enviro Clean") entered into a lock-up
agreement in favor of Gaines Berland, Inc. and Nolan Securities, Inc. (the
"Underwriters") (the "Lock-Up Agreement) in connection with the issuer's initial
public offering, which restricted certain disposition of 2,000,000 shares of
Common Stock held by Enviro Clean for a one year period commencing February 15,
2000. On March 14, 2000, the Underwriters granted a waiver to the Lock-Up
Agreement to sell 1,000,000 of the 2,000,000 shares held by Enviro Clean. Upon
receiving the waiver, Enviro Clean sold 1,000,000 shares of the Common Stock in
a private placement to ZERO.NET, Inc., a Delaware corporation, at $7.00 per
share for an aggregate of $7,000,000. The shares purchased by ZERO.NET, Inc.
will also be subject to a twelve month lock-up agreement.
(a) Not applicable.
(b) Not applicable.
(c) Not applicable.
(d) Not applicable.
(e) Not applicable.
(f) Not applicable.
(g) Not applicable.
(h) None.
(i) None.
(j) None.
Item 5. Interest in Securities of the Issuer.
(a)-(b)
1) Enviro-Clean of America, Inc.:
<PAGE>
(i) As of the date hereof, Enviro-Clean of America, Inc., beneficially owns
1,000,000 shares of the Issuer's Common Stock, and such shares constitute
approximately 12.5% of the total shares of the Issuer's Common Stock issued and
outstanding as of the date hereof.
(ii) Enviro-Clean of America has sole voting and disposition power over the
1,000,000 shares held in its name.
2) Richard Kandel:
(i) As of the date hereof, Richard Kandel beneficially owns 2,233,333
shares of the Issuer's Common Stock, and such shares constitute approximately
27.8% of the total shares of the Issuer's Common Stock issued and outstanding as
of the date hereof. Such shares beneficially owned by Richard Kandel include:
(1) 100,000 shares of Common Stock held by Kandel & Son Profit Sharing Plan, of
which Richard Kandel is a trustee; (2) 66,6667 shares of Common Stock held by
Mint Corp., a company 50% owned by Richard Kandel; and (3) 1,000,000 shares of
common stock held by Enviro-Clean of America, Inc., a company in which Richard
Kandel is majority shareholder and Chairman of the Board.
(ii) Richard Kandel has sole voting and disposition power over the
1,066,667 shares he personally holds. Richard Kandel shares voting and
disposition power over the 1,166,667 shares held by Enviro-Clean of America,
Inc., Kandel & Son Profit Sharing Plan, and Mint Corp. of New York and disclaims
beneficial ownership except to the extent of his pecuniary interest therein.
3) Steven Etra:
(i) As of the date hereof, Steven Etra beneficially owns 1,205,834 shares
of the Issuer's Common Stock, and such shares constitute approximately 15.0% of
the total shares of the Issuer's Common Stock issued and outstanding as of the
date hereof. Such shares beneficially owned by Steven Etra include: (1) 10,667
shares of Common Stock held by SRK Associates, a company controlled by Steven
Etra; (2) 3,500 shares of Common Stock held by Gemini Capital LLC, a company in
which Steven Etra is a minority shareholder and a director; and (3) 1,000,000
shares of common stock held by Enviro-Clean of America, Inc., a company in which
Steven Etra is a minority shareholder and a Director.
(ii) Steven Etra has sole voting and disposition power over the 190,667
shares he personally holds. Steven Etra shares voting and disposition power of
the 1,015,167 shares held by Lances Property Development Plan, Gemini Capital
LLC, SRK Associates, LLC, and Enviro-Clean of America, Inc. Steven Etra
disclaims ownership of these securities except to the extent of his pecuniary
interest therein.
4) Randall Davis:
(i) As of the date hereof, Randall Davis beneficially owns 1,333,333 shares
of the Issuer's Common Stock, and such shares constitute approximately 16.6% of
the total shares of the Issuer's Common Stock issued and outstanding as of the
date hereof. Such shares beneficially owned by Randall Davis include 1,000,000
shares of common stock held by Enviro-Clean of
<PAGE>
America, Inc., a company in which Randall Davis is a minority shareholder,
President and Director.
(ii) Randall Davis has sole voting and disposition power over the 333,333
shares he personally holds. Randall Davis shares voting and disposition power of
the 1,000,000 shares held by Enviro-Clean of America, Inc. and disclaims
ownership of these securities except to the extent of his pecuniary interest
therein.
(c) On February 15, 2000 Steven Etra and Gemini Capital purchased shares
in the Issuer's initial public offering. Steven Etra and Lances Development
Property Pension Plan later purchased shares of the registered stock after
trading began. All of these purchases are described in the Registered
Persons'13-D filed on March 13, 2000.
(d) and (e) Not Applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships With Respect
to Securities of the Issuer.
All shares of Common Stock held by the Reporting Persons are subject to a
lock-up agreement effective for 12 months from the effective date of the
Issuer's Initial Public Offering of February 15, 2000. Other than the
aforementioned, there are no contracts, arrangements, understandings or
relationships (legal or otherwise) between the Reporting Persons and any person
with respect to any securities of the Issuer, including, but not limited to,
transfer or voting of any of such securities, finder's fees, joint ventures,
loan or option agreements, puts or calls, guarantees of profits, divisions of
profits or loss, or the giving or withholding of proxies. None of the shares of
Common Stock beneficially owned by the Reporting Persons are pledged or
otherwise subject to a contingency the occurrence of which would give another
person voting power or investment power over such shares.
Item 7. Material to be Filed as Exhibits.
Exhibit 1 Joint Filing Agreement, dated March 8, 2000, by and between
Enviro-Clean of America, Inc., Richard Kandel, Steven Etra,
and Randall Davis.*
Exhibit 10.1 Form of Lock-up Agreement executed by Enviro-Clean of
America, Inc., Richard Kandel, Randall Davis and Steven Etra.
Exhibit 10.2 Waiver of Lock-Up Agreement for Enviro-Clean of America, Inc.
*Incorporated by reference to the Reporting Persons 13-D filed
March 13, 2000.
<PAGE>
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: March 16, 2000 Enviro-Clean of America, Inc.
By: /s/ Randall Davis
------------------------------
Randall Davis, President
/s/ Richard Kandel
------------------------------
Richard Kandel
/s/ Steven Etra
------------------------------
Steven Etra
/s/ Randall Davis
------------------------------
Randall Davis
<PAGE>
EXHIBIT 10.1
GAINES, BERLAND INC.
NOLAN SECURITIES, INC.
c/o GAINES, BERLAND INC.
As Representatives of the Several Underwriters
1055 Stewart Avenue
Bethpage, NY 11714
Re: Lock Up Agreement
Gentlemen:
In order to induce Gaines, Berland Inc. and Nolan Securities, Inc.,
the representatives of the several underwriters (the "Representatives"), and
b2bstores.com Inc., a Delaware corporation (the "Company"), or its successor, to
enter into an underwriting agreement with respect to the public offering of
shares of common stock, (the "Common Stock") of the Company (or its successor),
I hereby agree that for a period of twelve (12) months following the effective
date of the Company's (or its successor's) Registration Statement in connection
with such public offering, I will not, without prior written consent of the
Representatives, directly or indirectly, sell, offer to sell, grant an option
for the sale of, transfer, assign, hypothecate, pledge, distribute or otherwise
dispose or encumber (either pursuant to Rule 144 of the regulations under the
Securities Act of 1933, as amended, or otherwise) any shares of Common Stock of
the Company (or its successor) or options, rights, warrants or other securities
convertible into, Common Stock of the Company (or its successor) or options,
rights, warrants or other securities convertible into, exchangeable or
exercisable for or evidencing any right to purchase or subscribe for shares of
Common Stock of the Company (or its successor) (collectively, the "Securities")
(whether or not beneficially owned by the undersigned), or any beneficial
interest therein, provided, however, that the undersigned may transfer the
Securities, or a beneficial interest therein, in a private transaction pursuant
to an exemption from registration (other than Rule 144) provided that the
transferee agrees in writing to be bound by the terms of this agreement.
In order to enable the Representatives to enforce the aforesaid
covenants, I hereby consent to the placing of legends and stop-transfer orders
with the transfer agent of the Company's (or its successor's) securities with
respect to any of the securities registered in my name or beneficially owned by
me.
This Agreement shall be binding on the undersigned and his, her or its
respective successors, heirs, personal representatives and assigns.
This Agreement shall be governed by and construed in accordance with
the laws of the State of New York, without giving effect to conflict of law
principles.
Dated: 01/12/99
-----------------------
Enviro-Clean of America, Inc.
By:
-------------------------- ------------------------------
Signature Print Address
------------------------------
----------------------------- ------------------------------
Print Name Print Social Security Number or
Taxpayer I.D. number
<PAGE>
EXHIBIT 10.2
Randy Davis, President
Enviro-Clean of America, Inc.
1023 Morales
San Antonio, Texas 78207
Re: b2bStores.com, Inc. Lock-up Agreement
Dear Mr. Davis:
Reference is made to that certain Lock-up Agreement entered into by
Enviro-Clean of America, Inc. (the "Lock-up Agreement") in connection with the
initial public offering of b2bstores.com, Inc. (the "Company") which went
effective February 15, 2000. The undersigned hereby consents to the private
sale of 1,000,000 shares of Common Stock of the Company covered by the Lock-up
Agreement to zero.net, Inc., a Delaware corporation, on the condition that said
purchaser enter into a new lock-up agreement restricting the transfer of said
1,000,000 shares of Common Stock for a period of twelve months following the
effective date of the Company's registration statement.
This letter agreement by the undersigned shall be binding on the
undersigned and our respective successors and assigns. Each of the undersigned
has the authority to enter in to this letter agreement.
Dated: 03/14/00
---------
Gaines Berland, Inc.
By: /s/ Joseph Berland
--------------------------------
Name: Joseph Berland
------------------------------
Title: Chairman
-----------------------------
Nolan Securities, Inc.
By: /s/ Bruce P. Kelly
--------------------------------
Name: Bruce P. Kelly
------------------------------
Title: Managing Director
-----------------------------
