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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13G
UNDER THE SECURITIES EXCHANGE ACT OF 1934
SOFTQUAD SOFTWARE, LTD.
-----------------------
(Name of Issuer)
COMMON STOCK, $.001 PAR VALUE
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(Title of Class of Securities)
83402G104
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(CUSIP Number)
MARCH 2, 2000
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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)
*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).
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CUSIP NO. 83402G104 13G
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
VC ADVANTAGE LIMITED PARTNERSHIP
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
ONTARIO, CANADA
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NUMBER OF 5 SOLE VOTING POWER
SHARES
BENEFICIALLY 1,599,781 SHARES
OWNED --------------------------------------
BY EACH 6 SHARED VOTING POWER
REPORTING PERSON
WITH 0 SHARES
--------------------------------------
7 SOLE DISPOSITIVE POWER
1,599,781 SHARES
--------------------------------------
8 SHARED DISPOSITIVE POWER
0 SHARES
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9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,599,781 SHARES
--------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9)
EXCLUDES CERTAIN SHARES [X]
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11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
9.9%
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12 TYPE OF REPORTING PERSON
PN
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CUSIP NO. 83402G104 13G
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
THOMSON KERNAGHAN & CO. LIMITED
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
ONTARIO, CANADA
--------------------------------------------------------------------------------
NUMBER OF 5 SOLE VOTING POWER
SHARES
BENEFICIALLY 883,377 SHARES
OWNED --------------------------------------
BY EACH 6 SHARED VOTING POWER
REPORTING PERSON
WITH 0 SHARES
--------------------------------------
7 SOLE DISPOSITIVE POWER
883,377 SHARES
--------------------------------------
8 SHARED DISPOSITIVE POWER
0 SHARES
--------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,599,781 SHARES
--------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9)
EXCLUDES CERTAIN SHARES [X]
--------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
9.9%
--------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON
CO
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CUSIP NO. 83402G104 13G
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
CALP II LIMITED PARTNERSHIP
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
BERMUDA
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NUMBER OF 5 SOLE VOTING POWER
SHARES
BENEFICIALLY 137,133 SHARES
OWNED -------------------------------------
BY EACH 6 SHARED VOTING POWER
REPORTING PERSON
WITH 0 SHARES
-------------------------------------
7 SOLE DISPOSITIVE POWER
137,133 SHARES
--------------------------------------
8 SHARED DISPOSITIVE POWER
0 SHARES
--------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,599,781 SHARES
--------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9)
EXCLUDES CERTAIN SHARES [X]
--------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
9.9%
--------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON
OO
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Item 1(a) NAME OF ISSUER:
SoftQuad Software, Ltd.
Item 1(b) ADDRESS OF ISSUER'S PRINCIPAL EXECUTIVE OFFICES:
161 Eglinton Avenue East, Suite 400
Toronto, Ontario M4P 1J5, Canada
Item 2(a) NAMES OF PERSONS FILING:
VC Advantage Limited Partnership
Thomson Kernaghan & Co. Limited
CALP II Limited Partnership
This Schedule 13G is jointly filed on behalf of the
above-named persons.
Item 2(b) ADDRESS OF PRINCIPAL BUSINESS OFFICE OR, IF NONE, RESIDENCE:
VC Advantage Limited Partnership
365 Bay Street, Tenth Floor
Toronto, Ontario M5H 2V2
Canada
Thomson Kernaghan & Co. Limited
365 Bay Street, Tenth Floor
Toronto, Ontario M5H 2V2
Canada
CALP II Limited Partnership
c/o Form Fund Services
Washington Mall, 3rd Floor
Hamilton HM11, Bermuda
Item 2(c) CITIZENSHIP:
VC Advantage Limited Partnership: Canada
Thomson Kernaghan & Co. Limited: Canada
CALP II Limited Partnership: Bermuda
Item 2(d) TITLE OF CLASS OF SECURITIES:
Common Stock, $.001 par value (the "Common Stock")
Item 2(e) CUSIP NUMBER:
83402G104
Item 3 IF THIS STATEMENT IS FILED PURSUANT TO RULES 13d-1(b), OR
13d-2(b), CHECK WHETHER THE PERSON FILING IS A:
Not applicable.
Pafe 5 of 9
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Item 4 OWNERSHIP:
Two executive officers of Thomson Kernaghan & Co. Limited
("Thomson Kernaghan") (including its Chairman) also are
executive officers of the general partner of VC Advantage
Limited Partnership ("VC Advantage") and the general partner of
CALP II Limited Partnership ("CALP II"). Accordingly, Thomson
Kernaghan, VC Advantage and CALP II may be considered a group
that beneficially owns all of the shares beneficially owned by
any of them. Under an agreement with the Issuer (the
"Conversion Cap Agreement"), Thomson Kernaghan, VC Advantage
and CALP II agreed not to have the right to convert any
preferred stock or exercise any warrant or special warrant if,
after having given effect to the conversion or exercise, all of
the considered as a group would be deemed to beneficially own
more than 9.9% of the then outstanding common stock. If not for
the Conversion Cap Agreement, Thomson Kernaghan, VC Advantage
and CALP II, considered as a group, would beneficially own
5,285,715 shares of the Issuer's common stock, including
1,806,738 shares of common stock issuable upon conversion of
preferred stock, 91,422 shares of common stock issuable upon
exercise of special warrants and 1,787,777 shares of common
stock issuable upon exercise of warrants.
VC Advantage Limited Partnership:
(a) Amount Beneficially Owned: 1,599,781 shares
(b) Percent of Class: 9.9%
(c) (i) Sole Voting Power: 1,599,781 shares
(ii) Shared Voting Power: 0 shares
(iii) Sole Dispositive Power: 1,599,781 shares
(iv) Shared Dispositive Power: 0 shares
Thomson Kernaghan & Co. Limited:
(a) Amount Beneficially Owned: 1,599,781 shares
(b) Percent of Class: 9.9%
(c) (i) Sole Voting Power: 883,377 shares
(ii) Shared Voting Power: 0 shares
(iii) Sole Dispositive Power: 883,377 shares
(iv) Shared Dispositive Power: 0 shares
CALP II Limited Partnership:
(a) Amount Beneficially Owned: 1,599,781 shares
(b) Percent of Class: 9.9%
(c) (i) Sole Voting Power: 137,133 shares
(ii) Shared Voting Power: 0 shares
(iii) Sole Dispositive Power: 137,133 shares
(iv) Shared Dispositive Power: 0 shares
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.
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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.
Item 10 CERTIFICATION:
By signing below I certify that, to the best of my 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 participation in any transaction
having that purpose or effect.
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SIGNATURES
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 August 30, 2000
VC ADVANTAGE LIMITED PARTNERSHIP
By VC Advantage Limited, General Partner,
By /s/ Mark E. Valentine
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Mark E. Valentine, President
THOMSON KERNAGHAN & CO. LIMITED
By /s/ Mark E. Valentine
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Mark E. Valentine, Chairman
CALP II LIMITED PARTNERSHIP
By VMH Investment Management Ltd.
By /s/ Mark E. Valentine
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Mark E. Valentine, President
Exhibit: Agreement for Joint Filing Pursuant to Rule 13d-1(k)(1) under the
Securities Act of 1934
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EXHIBIT INDEX
Agreement for Joint Filing
