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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13G
(RULE 13D-102)
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)
(AMENDMENT NO.___) (1)
SGI International
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(NAME OF ISSUER)
Common Stock
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(TITLE OF CLASS OF SECURITIES)
784185209000
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(CUSIP NUMBER)
NOVEMBER 3, 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)
/x/ Rule 13d-1(c)
/ / 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).
Page 1 of 6 Pages
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<TABLE>
<CAPTION>
CUSIP NO. 784185209000 13G Page 2 of 6 Pages
==========================================================================================================
<S> <C> <C> <C>
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)
GCA STRATEGIC INVESTMENT FUND 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
BERMUDA
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5 SOLE VOTING POWER
1,111,956
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NUMBER OF 6 SHARED VOTING POWER
SHARES
BENEFICIALLY 0
OWNED BY -----------------------------------------------------------------------------------------
EACH
REPORTING 7 SOLE DISPOSITIVE POWER
PERSON 1,111,956
WITH -----------------------------------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
0
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9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,111,956
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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
5.3
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12 TYPE OF REPORTING PERSON*
CO
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</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT
Page 2 of 6 Pages
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13G
Item 1.
<TABLE>
<S> <C>
(a) NAME OF ISSUER:
SGI International
(b) ADDRESS OF ISSUER'S PRINCIPAL EXECUTIVE OFFICES:
1200 Prospect Street
Suite 325
La Jolla, CA 92037
Item 2.
(a) NAME OF PERSON FILING:
GCA Strategic Investment Fund Limited
(b) ADDRESS OF PRINCIPAL BUSINESS OFFICE OR, IF NONE, RESIDENCE:
Mechanics Building
12 Church Street
Hamilton HM11, Bermuda
(c) CITIZENSHIP:
Bermuda
(d) TITLE OF CLASS OF SECURITIES:
Common Stock
(e) CUSIP NUMBER:
784185209000
Item 3. IF THIS STATEMENT IS FILED PURSUANT TO RULE 13D-1(B), OR 13D-2(B) OR
(C), CHECK WHETHER PERSON FILING IS A:
(a) / / Broker or dealer registered under section 15 of the
Act.
(b) / / Bank as defined in Section 3(a)(6) of the Act.
(c) / / Insurance company as defined in section 3(a)(19) of
the Act.
(d) / / Investment company registered under section 8 of the
Investment Company Act.
(e) / / An investment adviser in accordance with Rule
13d-(b)(1)(ii)(E).
(f) / / An employee benefit plan or endowment fund in
accordance with 13d-1(b)(1)(ii)(F).
(g) / / Parent holding company or control person, in
accordance with 13d-1(b)(ii)(G).
</TABLE>
Page 3 of 6 Pages
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(h) / / Savings association as defined in Section
3(b) of the Federal Deposit Insurance Act.
(i) / / Church plan that is excluded from the
definition of an investment company under
Section 3(c)(14) of the Investment Company
Act.
(j) / / Group, in accordance with 13d-1(b)(1)(ii)(J).
If this statement is filed pursuant to Rule 13d-1(c), check
this box, [X]
Item 4. OWNERSHIP:
<TABLE>
<S> <C> <C>
(a) Amount beneficially owned 1,111,956 shares
(b) Percent of class
(c) PERCENT OF CLASS: 5.3%. This percentage is based on
total outstanding shares of 19,915,973 as of November
12, 1998, as reported in the Company's Form 10-Q for
the quarter ended September 30, 1998. This percentage
is based on an assumed conversion price of $.46 per
share. On November 3, 1998, GCA purchased, in a
private transaction, shares of the Company's 6%
Convertible Preferred Stock Series 98-C, convertible
into shares of the Company's common stock, and
Warrants for the purchase of 25,000 shares of such
common stock. The Preferred Stock may be converted
into common stock at any time at a price equal to the
lower of the last reported bid price of the common
stock or 75%percent of the average of the five lowest
closing bid prices of the commons stock for the five
trading days preceding the date of conversion. The
Warrants have a fixed exercise price.
(d) Number of shares as to which such person has:
(i) Sole power to vote or direct
the vote 1,111,956
(ii) Shared power to vote or direct
the vote 0
(iii) Sole power to dispose or direct
the disposition of 1,111,956
(iv) Shared power to dispose or direct
the disposition of 0
</TABLE>
Item 5. OWNERSHIP OF 5 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 THE SUBSIDIARY WHICH ACQUIRED
THE SECURITY BEING REPORTED ON BY THE PARENT HOLDING COMPANY.
Not Applicable
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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 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 in connection with or as a
participant in any transaction having such purposes or effect.
Page 5 of 6 Pages
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SIGNATURE
After reasonable inquiry and to the best of my knowledge and
belief, I certify that the information set forth above in this statement is
true, complete and correct.
November 24, 1998
/s/ Joseph Kelly
------------------------------------
Name: Joseph Kelly
Title: Director, GCA Strategic
Investment Fund Limited
Page 6 of 6 Pages
