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FORM 3 OMB APPROVAL
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OMB Number 3235-0104
Expires: February 1, 1994
Estimated average burden
hours per response .............0.5
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U. S. SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
INITITAL 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
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1. Name and Address of Reporting Person
Genesis Health Ventures, Inc.
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(Last) (First) (MI)
148 West State Street
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(Street)
Kennett Square PA 19148
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(City) (State) (Zip)
2. Date of Event Requiring Statement (Month/Day/Year)
7/11/96
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3. IRS or Social Security Number of Reporting Person (Voluntary)
06-1132947
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4. Issuer Name and Ticker or Trading Symbol
Geriatric & Medical Companies, Inc. (GEMC)
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5. Relationship of Reporting Person to Issuer (Check all applicable)
[ ] Director [ X ] 10% Owner
[ ] Officer (give title below) [ ] Other (specify below)
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6. If Amendment, Date of Original (Month/Day/Year)
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TABLE I - Non-Derivative Securities Beneficially Owned
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<CAPTION>
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1. Title of Security | 2. Amount of Securities | 3. Ownership Form: | 4. Nature of Indirect Beneficial
(Instr. 4) | Beneficially Owned | Direct (D) or Indirect | Ownership (Instr. 5)
| (Instr. 4) | (I) (Instr. 5) |
<S> <C> <C> <C>
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Reminder: Report on a seperate line for each class of securities beneficially
owned directly or indirectly.
(Print or Type Responses)
(Over)
SEC 1473 (3/91)
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<TABLE>
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FORM 3 (continued) Table II -- Derivative Securities Benefically Owned
(e.g., puts, calls, warrants, options, convertible securities)
<S> <C>
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1. Title of Derivative Security (Instr. 4) | 2. Date Exercisable and Expiration Date
| (Month/Day/Year)
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| Date Exercisable | Expiration Date
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Option (1) | 7/11/96 | (1)
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3. Title and Amount of Securities | 4. Conversion or Exercise | 5. Ownership Form of Derivative | 6. Nature of Indirect
Underlying Derivative Security | Price of Derivative | Security: Direct (D) or | Beneficial Ownership
(Instr. 4) | Security | Indirect (I) (Instr. 5) | (Instr. 5)
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| Ammount or | | |
| Number of | | |
Title | Shares | | |
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Common Stock | 3,748,178 | $5.75(1) | I | 1
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</TABLE>
Explanation of Responses:
The filing of this Statement shall not be construed as an admission (a) that the
person filing this Statement is, for the purposes of Section 16 of the
Securities Exchange Act of 1934 (as amended), the beneficial owner of any equity
securities covered by this Statement, or (b) that this Statement is legally
required to be filed by such person.
(1) See attached supplement.
** 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 provided is insufficient, see Instruction 6 for procedure.
GENESIS HEALTH VENTURES, INC.
By: /s/ George V. Hager, Jr. July 22, 1996
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**Signature of Reporting Person Date
George V. Hager, Jr.
Senior Vice President and
Chief Financial Officer
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SEC 1473 (3/91)
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(1) This statement relates to a Stockholder Option and Proxy Agreement dated as
of July 11, 1996 (the "Agreement") among G Acquisition Corporation ("Newco"), a
wholly owned subsidiary of Genesis Health Ventures, Inc. ("Genesis"), Tomahawk
Holdings, Inc. ("Shareholder"), Tomahawk Capital Holdings, Inc. and Daniel
Veloric (Shareholder, Tomahawk Capital Holdings, Inc. and Daniel Veloric are
referred to collectively herein as the "Owners") pursuant to which Owners
granted to Newco (i) an option (the "Stock Option") to purchase the shares (the
"Shares") of Geriatric & Medical Companies, Inc. ("Issuer") owned by Shareholder
and (ii) an irrevocable proxy (the "Proxy") both as more fully described below.
The Stock Option entitles Newco to purchase the Shares owned by the Shareholder
for a purchase price (the "Exercise Price") of $5.75 per Share.
The Agreement was entered into to induce Genesis and Newco
to enter into an Agreement and Plan of Merger dated July 11, 1996 among Newco,
Genesis and Issuer (the "Merger Agreement") pursuant to which Newco has agreed,
subject to certain conditions, to merge into GMC (the "Merger").
The Option may be exercised by Newco, in whole or in part, at
any time prior to the earlier of (i) the day following the effective date of the
Merger or (ii) (A) one year after the termination of the Merger Agreement, if
the Merger is not approved by a vote of over 50% of the shares of the Issuer or
if the Merger Agreement is terminated after the Issuer has willfully taken
actions or willfully failed to take actions which cause a default under the
Merger Agreement or a condition to Genesis's consummation of the Merger
Agreement not to be met; (B) six months after termination of an unsuccessful
proposed third party acquisition if the Merger Agreement had been terminated
under the Merger Agreement as a result of a proposed third party acquisition;
(C) immediately if the Merger Agreement is terminated upon a default by Genesis;
and (D) three months after the termination of the Merger Agreement if the Merger
Agreement is terminated for any other reason.
In the event that at any time prior to the effective date of
the Merger the highest price paid by Newco for any share of Issuer Common Stock
exceeds $5.75 (as adjusted) then (a) the Exercise Price shall be adjusted to the
highest such price, and (b) as to Shares as to which the Option has previously
been exercised, Newco or Genesis shall promptly pay the amount of the product of
(i) the amount of such excess price per share, multiplied by (ii) the number of
Shares as to which the Option has previously been exercised. If, after Newco has
exercised the Option and prior to the consummation of the Merger, Newco directly
or indirectly sells or otherwise disposes of any Shares purchased pursuant to
the Option (other than in the Merger or to Genesis) then Newco or Genesis shall
pay to the Shareholder, as promptly as practicable after such sale or other
disposition, the amount on a per share basis, if any, by which the net proceeds
received by Newco upon the sale or other disposition exceeds the aggregate price
paid by Newco to the Shareholder upon exercise of the Option for the purchase of
such Share.
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Under the Agreement, the Owners agree to vote (or cause to be
voted) the Shares owned by them in any circumstance in which the vote or
approval of the shareholders of the Issuer is sought (i) in favor of adoption
and approval of the Merger Agreement and the Merger and the terms thereof and
each of the other actions contemplated by the Merger Agreement and the
Agreement; (ii) against any action or agreement that would result in a breach of
any covenant, representation or warranty or any other obligation or agreement of
the Issuer contained in the Merger Agreement or of any Shareholder in this
Agreement; and (iii) against any action, agreement or transaction that is
intended or could reasonably be expected to facilitate a person
other than Newco or its affiliate in acquiring control of the Issuer or any
other action, agreement or transaction (other than the Merger Agreement or the
transactions contemplated thereby) that is intended, or could reasonably be
expected to impede, interfere or be inconsistent with, delay, postpone,
discourage or materially adversely affect the consummation of the Merger or the
performance by the parties hereto of their respective obligations under this
Agreement.
Under the Agreement, the Shareholder irrevocably granted to
Newco and appointed Newco (with full power of substitution) its proxy to vote
the Shares owned by it in the manner described in the preceding paragraph.
Pursuant to the Agreement, the Owners, until the earlier to
occur of (a) termination of the Merger Agreement and (b) the effective date of
the Merger, shall not transfer any of its Shares or any interests therein,
except pursuant to the Merger (other than, under limited circumstances, certain
security interests in the Shares).
