SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13G
Under the Securities Exchange Act of 1934
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULES 13d-1(b), (c)
AND (d) AND AMENDMENTS THERETO FILED PURSUANT TO RULE 13d-2(b)
Interactive Magic, Inc.
(Name of Issuer)
Common Stock, $.10 par value
(Title of Class of Securities)
45838M 10 4
(CUSIP Number)
DECEMBER 31, 1998
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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)
|_| Rule 13d-1 (c)
|X| Rule 13d-1 (d)
- ----------
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 the
disclosures provided in a prior cover page.
The information required in 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).
(Continued on following page(s))
Page 1 of 5 Pages
<PAGE>
CUSIP No.: 45838M 10 4 13G Page 2 of 5 Pages
1. NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Vertical Financial Holdings Establishment
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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
Switzerland
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5. SOLE VOTING POWER
NUMBER OF 2,045,649
-----------------------------------------------------------
SHARES 6. SHARED VOTING POWER
BENEFICIALLY -0-
-----------------------------------------------------------
OWNED BY 7. SOLE DISPOSITIVE POWER
EACH 825,565
-----------------------------------------------------------
REPORTING 8. SHARED DISPOSITIVE POWER
PERSON WITH -0-
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9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,045,649
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10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
|_|
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11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
20.8%
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12. TYPE OF REPORTING PERSON*
CO
- --------------------------------------------------------------------------------
* SEE INSTRUCTIONS BEFORE FILLING OUT!
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<PAGE>
Page 3 of 5 Pages
Item 1(a). Name of Issuer: Interactive Magic, Inc.
Item 1(b). Address of Issuer's Principal Executive Offices:
Interactive Magic, Inc.
215 Southport Drive, Suite 1000
Morrisville, North Carolina 27560
Item 2(a). Name of Person Filing:
Vertical Financial Holdings Establishment ("Vertical").
Vertical is beneficially owned by Derungs Treuhandgesellschaft
AG. Jacob Agam serves as Chairman of Vertical, and Bruno
Derungs, who is the principal of Derungs Treuhandgesellschaft
AG, serves as its Managing Director.
Item 2(b). Address of Principal Business Office or, if none, Residence:
Hambrechtikerstrasse 61
CH-8640 Rapperswil
Switzerland
Item 2(c). Citizenship:
Switzerland
Item 2(d). Title of Class of Securities:
Common Stock, $.10 per share
Item 2(e). CUSIP Number:
45838M 10 4
Item 3. Not Applicable
Item 4. Ownership.
(a) Amount beneficially owned:
As of December 31, 1998, Vertical beneficially owned an aggregate of
2,045,649 shares of the Issuer's Common Stock which includes (i)
398,171 shares owned by Vertical; (ii) 427,394 shares owned by
entities beneficially owned by Vertical and (iii) 1,220,084 shares
owned by other investors over which Vertical has voting power
pursuant to a proxy agreement.
-3-
<PAGE>
Page 4 of 5 Pages
<TABLE>
<CAPTION>
<S> <C>
(b) Percent of class:
20.8%
(c) Number of shares as to which such person has:
(i) Sole power to vote or to direct the vote: 2,045,649
(ii) Shared power to vote or to direct the vote: -0-
(iii) Sole power to dispose or to direct the disposition of: 825,565
(iv) Shared power to dispose or to direct the disposition of: -0-
</TABLE>
Item 5. Ownership of Five Percent or Less of a Class.
Not Applicable
Item 6. Ownership of More than Five Percent on Behalf of Another
Person.
Not Applicable
Item 7. Identification and Classification of 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
Item 10. Certifications.
Not Applicable
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<PAGE>
Page 5 of 5 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.
February 12, 1999
-----------------------------------------
(Date)
Vertical Financial Holdings Establishment
/s/ Jacob Agam
-----------------------------------------
(Signature)
By: Jacob Agam, Chairman
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