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| FORM 3 | U.S. SECURITIES AND EXCHANGE COMMISSION
+--------+ WASHINGTON, D.C. 20549
INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934,
Section 17(a) of the Public Utility Holding Company Act of 1935 or
Section 30(f) of the Investment Company Act of 1940
(Print or Type Responses)
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1. Name and Address of Reporting Person*
Morse Partners Ltd.
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(Last) (First) (Middle)
200 Four Falls Corporate Center, Suite 205
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(Street)
West Conshohocken Pennsylvania 19428
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(City) (State) (Zip)
2. Date of Event Requiring Statement (Month/Day/Year) 10/16/98
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3. IRS Identification Number of Reporting Person if an Entity
(Voluntary) 23-2236922
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4. Issuer Name and Ticker or Trading Symbol Canisco Resources Inc. (CANR)
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5. Relationship of Reporting Person(s) to Issuer (Check all applicable)
[ ] Director [ ] Officer [X] 10% Owner [ ] Other
(give title below) (specify below)
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6. If Amendment, Date of Original (Month/Day/Year)
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7. Individual or Joint Group Filing (Check Applicable Line)
X Form Filed by One Reporting Person
____ Form filed by More than One Reporting Person
TABLE I--NON-DERIVATIVE SECURITIES BENEFICIALLY OWNED
<TABLE>
<CAPTION>
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1. Title 2. Amount of 3. Ownership Form: 4. Nature of
of Securities Bene- Direct (D) or Indirect Bene-
Security ficially Owned Indirect (I) ficial Ownership
(Instr. 4) (Instr. 4) (Instr. 5) (Instr. 5)
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<S> <C> <C> <C>
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Reminder: Report on a separate line for each class of securities beneficially
owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction
5(b)(v) (over)
Potential persons who are to respond to the collection of information contained
in this form are not required to respond unless the form displays a currently
valid OMB control number
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FORM 3 (continued)
TABLE II--DERIVATIVE SECURITIES BENEFICIALLY OWNED
(e.g., puts, calls, warrants, options, convertible securities)
<TABLE>
<CAPTION>
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1. Title of Derivative 2. Date Exer- 3. Title and Amount of Securities 4. Conversion 5. Ownership 6. Nature of In-
Security (Instr. 4) cisable and Underlying Derivative Security or Form of direct Bene-
Expiration (Instr. 4) Exercise Derivative ficial
Date Price Security: Ownership
(Month/Day/ of Direct (D) (Instr. 5)
Year) Derivative or In-
---------------------------------------------------- Security direct (I)
Date Expira- Amount or (Instr. 5)
Exer- tion Title Number of
cisable Date Shares
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<S> <C> <C> <C> <C> <C> <C> <C>
12% Series A or B Cumulative
Convertible Preferred Stock Note 1 Note 1 Common Stock 600,000 $2.50 D N/A
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</TABLE>
Explanation of Responses:
**Intentional misstatements or omissions of facts constitute Federal Criminal
Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed.
If space is insufficient, See Instruction 6 for procedure.
Potential persons who are to respond to the collection of information contained
in this form are not required to respond unless the form displays a currently
valid OMB Number.
/s/ R. Bruce Dalglish 10/26/98
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**Signature of Reporting Person Date
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Note 1
Morse Partners has entered into a Securities Purchase Agreement, dated as of
October 16, 1998 (the "Agreement"), among Mellon Ventures, L.P., Morse Partners
and Canisco Resources, Inc. (the "Company"). Pursuant to the Agreement and
subject to satisfaction or waiver of certain conditions, Morse Partners has
agreed to purchase an aggregate 2,824 or, if certain additional conditions are
satisfied or waived, an aggregate 15,000 shares of 12% Series A Cumulative
Convertible Preferred Stock, par value $1.00 per share (the "Series A Preferred
Stock"), of the Company or, if Morse Partners so elects, 2,824 shares of Series
A Preferred Stock and 12,176 shares of 12% Series B Cumulative Convertible
Preferred Stock, par value $1.00 per share (the "Series B Preferred Stock" and,
together with Series A Preferred Stock, "Preferred Stock"), of the Company.
When issued, shares of Series A Preferred Stock will be convertible into shares
of Common Stock, par value $.0025 per share ("Class A Common Stock"), of the
Company at any time by the holder at an initial conversion price of $2.50 per
share of Class A Common Stock. Shares of Series B Preferred Stock will be
convertible into a new non-voting class of common stock, par value $.0025 per
share (the "Class B Common Stock" and, together with the Class A Common Stock,
the "Common Stock"), of the Company at any time by the holder also at an initial
conversion price of $2.50 per share of Class B Common Stock. Shares of Class B
Common Stock will be convertible into shares of Class A Common Stock, and shares
of Class A Common Stock will be convertible into shares of Class B Common Stock,
at any time by the holder on a share-for-share basis, subject to the terms of
the Company's Certificate of Incorporation. Shares of Series B Preferred Stock
will be convertible into shares of Series A Preferred Stock, and, if Morse
Partners and Mellon Ventures elect (and the stockholders of the Company so
approve), shares of Series A Preferred Stock will be convertible into shares of
Series B Preferred Stock, at any time by the holder on a share-for-share basis.
The terms of Series A Preferred Stock and Series B Preferred Stock will be
identical, except in respect of the conversion terms discussed above and except
that Series B Preferred Stock will lack certain voting rights of Series A
Preferred Stock set forth in the Securities Purchase Agreement. The conversion
price to be used to convert shares of Series A or Series B Preferred Stock to
shares of Class A or Class B Common Stock, respectively, will be subject to
adjustment upon the occurrence of certain events as more fully set forth in the
Securities Purchase Agreement.
