<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
SCHEDULE 13D
(Rule 13d-101)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
TO RULE 13d-1(a) AND AMENDMENTS THERETO FILED
PURSUANT TO RULE 13d-2(a)
(Amendment No. 1)(1)
Networks North Inc.
- -------------------------------------------------------------------------------
(Name of Issuer)
Common Stock, par value $.0467 per share
- -------------------------------------------------------------------------------
(Title of Class of Securities)
629409-40-0
- -------------------------------------------------------------------------------
(CUSIP Number)
David T. Patterson
NetStar Enterprises Inc.
Suite 100
2225 Sheppard Avenue East
Toronto, Ontario
Canada M2J 5C2
(416) 490-7083
- -------------------------------------------------------------------------------
(Address)
January 12, 2000
- -------------------------------------------------------------------------------
(Date of Event Which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G
to report the acquisition that is the subject of this Schedule 13D, and is
filing this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the
following box.
Note: Schedules filed in paper format shall include a signed original
and five copies of the Schedule, including all exhibits. See Rule 13d-7(b) for
other parties to whom copies are to be sent.
- --------
(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 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>
- -------------------------------------------------------------------------------
CUSIP No. 629409-40-0 SCHEDULE 13D Page 2 of 5 Pages
----------- ---
- -------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
NetStar Enterprises Inc.
______________________________________________________________________________
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [ ]
______________________________________________________________________________
3 SEC USE ONLY
______________________________________________________________________________
4 SOURCE OF FUNDS*
WC
______________________________________________________________________________
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
______________________________________________________________________________
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Canada
_______________________________________________________________________________
| |
NUMBER OF | 7 | SOLE VOTING POWER
SHARES | | 925,787
BENEFICIALLY |_____|________________________________________________________
OWNED BY | |
EACH | 8 | SHARED VOTING POWER
REPORTING | | 0
PERSON WITH |_____|________________________________________________________
| |
| 9 | SOLE DISPOSITIVE POWER
| | 925,787
|_____|________________________________________________________
| |
| 10 | SHARED DISPOSITIVE POWER
| | 0
_______________|_____|_________________________________________________________
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
925,787
______________________________________________________________________________
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
______________________________________________________________________________
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
32.4%
______________________________________________________________________________
14 TYPE OF REPORTING PERSON*
CO
______________________________________________________________________________
*SEE INSTRUCTIONS BEFORE FILLING OUT
-2-
<PAGE>
- ---------------------------------------- ----------------------
CUSIP No. 629409-40-0 Page 3 of 5 Pages
----------- ---
- ---------------------------------------- ----------------------
This Amendment No. 1 to Schedule 13D ("Amendment No. 1") amends the
Schedule 13D dated October 4, 1994 (the "Original Schedule") filed by Labatt
Communications Inc. ("LCI"), with respect to shares of Common Stock, par value
$.0467 per share (the "Common Stock"), of Networks North, Inc. (formerly known
as "NTN Canada, Inc.") (the "Issuer"), a New York corporation.
Item 1 Security and Issuer
This Amendment No. 1 relates to the Common Stock of the Issuer. The
principal executive offices of the Issuer are located at 14 Meteor Drive,
Etobicoke, Ontario, Canada M9W 1A4. NetStar Enterprises Inc. ("NetStar")
acquired the Common Stock from LCI as part of an internal corporate
restructuring of LCI during 1996.
Item 2 Identity and Background
(a) NetStar is a corporation organized under the laws of Canada. It is a
wholly-owned subsidiary of NetStar Communications Inc. ("Parent")
which is also organized under the laws of Canada.
(b) Suite 100
2225 Sheppard Avenue East
Toronto, Ontario Canada M2J 5C2
(c) NetStar is principally engaged in the business of television
production and broadcasting. Parent is a television production and
broadcasting holding company.
(d) During the past five years, neither NetStar, Parent, nor any of the
executive officers or directors of NetStar listed on Exhibit A nor of
Parent listed on Exhibit B, has been convicted in a criminal
proceeding.
(e) During the past five years, neither NetStar, Parent, nor any of the
executive officers or directors of NetStar listed on Exhibit A nor of
Parent listed on Exhibit B, has been a party to a civil proceeding of
a judicial or administrative body and as a result of which it was or
is subject to a judgment, decree or final order enjoining future
violations of, or prohibiting or mandating activities subject to,
federal or state securities laws, or prohibiting any violation of such
laws.
Exhibit A sets forth the name, address, present principal occupation,
and citizenship of each officer and director of NetStar. Exhibit B sets
forth the name, address, present principal occupation, and citizenship of
each officer and director of Parent.
-3-
<PAGE>
- ---------------------------------------- ----------------------
CUSIP No. 629409-40-0 Page 4 of 5 Pages
----------- ---
- ---------------------------------------- ----------------------
Item 3 Source and Amount of Funds or Other Consideration
The Common Stock was acquired by LCI from the Issuer pursuant to a
Stock Purchase Agreement dated as of October 4, 1994 between LCI and
the Issuer. A copy of the Stock Purchase Agreement is attached to the
Original Schedule as an exhibit. LCI used working capital funds to
acquire the Common Stock.
Item 4 Purpose of Transaction
As of the date of this Amendment No. 1, NetStar is holding its shares
of Common Stock with a view to selling such shares. However, there can
be no assurance that NetStar will sell all or any of its shares. See
also the response to Item 6 below.
Item 5 Interest in Securities of the Issuer
As of the date of this Amendment No. 1, NetStar owns 925,787 shares of
Common Stock, representing approximately 32.4% of the outstanding
shares of Common Stock. NetStar has the sole power to vote and dispose
of such shares of Common Stock, subject to the Letter Agreement
referred to in the response to Item 6 below.
Item 6 Contracts, Arrangements, Understandings or Relationships with respect
to Securities of the Issuer
Pursuant to a Letter Agreement dated January 12, 2000 (the "Letter
Agreement"), NetStar has agreed to sell all of its Common Stock to an
unaffiliated third party (the "Purchaser"). The obligation of the
Purchaser to consummate the purchase of the Common Stock pursuant to
the Letter Agreement is subject to the conditions specified in the
Letter Agreement, and there can be no assurance that Purchaser will
consummate the purchase of the Common Stock pursuant to, or on the
terms contemplated in, the Letter Agreement.
Item 7 Material to Be Filed as Exhibits
Attached as Exhibit C to this Amendment No. 1 is a copy of the Letter
Agreement.
-4-
<PAGE>
- ---------------------------------------- ----------------------
CUSIP No. 629409-40-0 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 7, 2000
--------------------------------------------
(Date)
NetStar Enterprises Inc.
/s/ David T. Patterson
--------------------------------------------
(Signature)
Vice President, General Counsel & Secretary
--------------------------------------------
(Title)
-5-
<PAGE>
EXHIBIT A
NetStar Enterprises Inc.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
Name Citizenship Present Principal
Occupation
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
A. Gordon Craig Canada Director; Chairman and CEO
2225 Sheppard Avenue East
Suite 100
Toronto, Ontario M2J 5C2
- ------------------------------------------------------------------------------------------------------------------
Jim S. Thompson Canada Director; President
2225 Sheppard Avenue East
Suite 100
Toronto, Ontario M2J 5C2
- ------------------------------------------------------------------------------------------------------------------
Ronald A. Petrescue Canada Director; Executive Vice President
2225 Sheppard Avenue East and President, NetStar Operations
Suite 100
Toronto, Ontario M2J 5C2
- ------------------------------------------------------------------------------------------------------------------
Lorne C. Stephenson Canada Executive Vice President,
2225 Sheppard Avenue East Administration
Suite 100
Toronto, Ontario M2J 5C2
- ------------------------------------------------------------------------------------------------------------------
Mary G. Currie Canada Vice President, Finance and Planning
2225 Sheppard Avenue East and Acting CFO
Suite 100
Toronto, Ontario M2J 5C2
- ------------------------------------------------------------------------------------------------------------------
Roderick Brace Canada Vice President
2225 Sheppard Avenue East
Suite 100
Toronto, Ontario M2J 5C2
- ------------------------------------------------------------------------------------------------------------------
Gerald S. Frappier Canada Vice President
1755 Rene Levesque Blvd. East
Montreal, Quebec H2K 4P6
- ------------------------------------------------------------------------------------------------------------------
Patricia J. Cross Canada Vice President,
2225 Sheppard Avenue East Human Resources
Suite 100
Toronto, Ontario M2J 5C2
- ------------------------------------------------------------------------------------------------------------------
J. Laurie Haines Canada Vice President and Chief Information
2225 Sheppard Avenue East Officer
Suite 100
Toronto, Ontario M2J 5C2
- ------------------------------------------------------------------------------------------------------------------
Keith W. Pelley Canada Vice President, Programming and
2225 Sheppard Avenue East Production
Suite 100
Toronto, Ontario M2J 5C2
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
Name Citizenship Present Principal
Occupation
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Wayne Scrivens Canada Vice President, Technical Operations
2225 Sheppard Avenue East and Engineering
Suite 100
Toronto, Ontario M2J 5C2
- ------------------------------------------------------------------------------------------------------------------
David T. Patterson Canada Vice President, General Counsel and
2225 Sheppard Avenue East Secretary
Suite 100
Toronto, Ontario M2J 5C2
- ------------------------------------------------------------------------------------------------------------------
Astrid Zimmer Canada Assistant Secretary
2225 Sheppard Avenue East
Suite 100
Toronto, Ontario M2J 5C2
- ------------------------------------------------------------------------------------------------------------------
John D. Caplice Canada Treasurer
2225 Sheppard Avenue East
Suite 100
Toronto, Ontario M2J 5C2
- ------------------------------------------------------------------------------------------------------------------
Craig E. Daigle Canada Assistant Treasurer
2225 Sheppard Avenue East
Suite 100
Toronto, Ontario M2J 5C2
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
A-2
<PAGE>
EXHIBIT B
NetStar Communications Inc.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
Name Citizenship Present Principal
Occupation
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
William P. Burkhardt United States of America Director; Senior Vice President and
77 West 66th Street, 21st Floor Managing Director, ESPN International
New York, New York 10023
- ------------------------------------------------------------------------------------------------------------------
Christine F. Driessen United States of America Director; Executive Vice President
ESPN Plaza, 935 Middle Street and CFO, ESPN, Inc.
Bristol, Connecticut 06010-7454
- ------------------------------------------------------------------------------------------------------------------
Donald G. Campbell Canada Director; Businessman
8 Mariners Haven
RR #4, Box 4492
Collingwood, Ontario L9Y 4T9
- ------------------------------------------------------------------------------------------------------------------
Wayne T. Egan Canada Director; Lawyer, Weir & Foulds
130 King Street West
Suite 1600, Exchange Tower
Toronto, Ontario M5X 1J5
- ------------------------------------------------------------------------------------------------------------------
John D. McKellar Canada Director; Lawyer, Weir & Foulds
130 King Street West
Suite 1600, Exchange Tower
Toronto, Ontario M5X 1J5
- ------------------------------------------------------------------------------------------------------------------
John L. Pandell Canada Director; Lawyer, Weir & Foulds
130 King Street West
Suite 1600, Exchange Tower
Toronto, Ontario M5X 1J5
- ------------------------------------------------------------------------------------------------------------------
A. Gordon Craig Canada Director; Chairman and CEO
2225 Sheppard Avenue East
Suite 100
Toronto, Ontario M2J 5C2
- ------------------------------------------------------------------------------------------------------------------
Jim S. Thompson Canada Director; Vice President
2225 Sheppard Avenue East
Suite 100
Toronto, Ontario M2J 5C2
- ------------------------------------------------------------------------------------------------------------------
Lorne C. Stephenson Canada Executive Vice President,
2225 Sheppard Avenue East Administration
Suite 100
Toronto, Ontario M2J 5C2
- ------------------------------------------------------------------------------------------------------------------
Mary G. Currie Canada Vice President, Finance and Planning
2225 Sheppard Avenue East and Acting CFO
Suite 100
Toronto, Ontario M2J 5C2
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
B-1
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
Name Citizenship Present Principal
Occupation
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Ronald A. Petrescue Canada Vice President
2225 Sheppard Avenue East
Suite 100
Toronto, Ontario M2J 5C2
- ------------------------------------------------------------------------------------------------------------------
Roderick Brace Canada Vice President
2225 Sheppard Avenue East
Suite 100
Toronto, Ontario M2J 5C2
- ------------------------------------------------------------------------------------------------------------------
Gerald S. Frappier Canada Vice President
1755 Rene Levesque Blvd. East
Montreal, Quebec H2K 4P6
- ------------------------------------------------------------------------------------------------------------------
Kenneth B. Murphy Canada Vice President
2225 Sheppard Avenue East
Suite 100
Toronto, Ontario M2J 5C2
- ------------------------------------------------------------------------------------------------------------------
Patricia J. Cross Canada Vice President,
2225 Sheppard Avenue East Human Resources
Suite 100
Toronto, Ontario M2J 5C2
- ------------------------------------------------------------------------------------------------------------------
J. Laurie Haines Canada Vice President and Chief Information
2225 Sheppard Avenue East Officer
Suite 100
Toronto, Ontario M2J 5C2
- ------------------------------------------------------------------------------------------------------------------
David T. Patterson Canada Vice President, General Counsel and
2225 Sheppard Avenue East Secretary
Suite 100
Toronto, Ontario M2J 5C2
- ------------------------------------------------------------------------------------------------------------------
Astrid Zimmer Canada Assistant Secretary
2225 Sheppard Avenue East
Suite 100
Toronto, Ontario M2J 5C2
- ------------------------------------------------------------------------------------------------------------------
John D. Caplice Canada Treasurer
2225 Sheppard Avenue East
Suite 100
Toronto, Ontario M2J 5C2
- ------------------------------------------------------------------------------------------------------------------
Craig E. Daigle Canada Assistant Treasurer
2225 Sheppard Avenue East
Suite 100
Toronto, Ontario M2J 5C2
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
B-2
<PAGE>
EXHIBIT C
DELIVERED
- ---------
January 12, 2000
NetStar Enterprises Inc.
2225 Sheppard Avenue East
Suite 100
Toronto, Ontario
M2J 5C2
Attention: Lorne C. Stephenson, Executive Vice President, Administration
Dear Sirs:
Re: Purchase by Jeffrey Kirsch and HDL Capital Corporation, both on behalf of
a company to be incorporated and without personal liability
(collectively, the "Purchaser") of 925,787 shares (the "Shares") in the
capital stock of Networks North Inc. (the "Company") owned by NetStar
Enterprises Inc. ("NetStar")
Dear Sirs:
Further to our discussions and correspondence, this letter will confirm that,
subject to the provisions of this letter, NetStar is prepared to sell all, but
not less than all, the Shares to the Purchaser based on the following basic
principles.
1. The purchase price for the Shares shall be $3.00 (U.S.) per share for an
aggregate purchase price of $2,777,361.00 (U.S.).
2. The Purchaser shall be permitted eighty (80) days from the date hereof to
complete its due diligence in respect of the Company's business and
affairs.
3. If satisfied with the due diligence and if it wishes to proceed with the
transaction, the Purchaser shall advise NetStar in writing that it wishes
to proceed and whether it believes the transaction is: (a) exempt from the
take-over bid provisions contained in the Securities Act (Ontario) (the
"Act") and the purchaser wishes to close pursuant to such exemption or (b)
is not exempt from such provisions and the Purchaser intends to make a
formal take-over bid pursuant to the Act.
If NetStar agrees that the transaction would be exempt from the take-over
bid provisions of the Act; then, subject to paragraph 4, this agreement
shall constitute a binding agreement of purchase and sale, and the
transaction shall close within five days of the Purchaser's notice to
NetStar. If NetStar does not so agree NetStar shall not be required to sell
the Shares in such manner. If the Purchaser confirms it intends to make a
formal take-over bid pursuant to the Act, NetStar agrees that, subject to
C-1
<PAGE>
paragraph 4, this agreement shall constitute a binding agreement to tender
the Shares to such take-over bid provided the price per share pursuant to
the bid is $3.00 (U.S.) or more (the "Offer Price"). NetStar shall have the
right to withdraw the Shares from the take-over bid at any time prior to
such Shares being taken up and paid for by the Purchaser if a third party
makes a take-over bid at a price per share which exceeds the Offer Price.
If NetStar withdraws the Shares and tenders the Shares to the higher
take-over bid, NetStar shall, upon receipt of payment for the shares
tendered, pay to the Purchaser an amount per share sold by NetStar equal to
50% of the amount by which the price received by NetStar exceeds the
initial Offer Price (the "Break Fee"). Any formal take-over bid shall be
open for acceptance for not more than 21 days (or for any additional period
to the extent required to comply with applicable securities laws, such
additional period to be referred to herein as the " Additional Period") and
in any event, the Purchaser shall take-up and pay for the shares under the
bid no later than 45 days (plus any applicable Additional Period) after the
date of the notice given by the Purchaser to NetStar under this paragraph 3
(unless the Purchaser increases the Offer Price, in which case the time
periods set out herein shall be extended for an additional period or
periods of 10 days or such other or greater period(s) necessary to comply
with applicable securities laws), failing which NetStar shall have the
right to terminate this agreement without prejudice to any claims that
NetStar may have against the Purchaser. For the sake of clarity, the Break
Fee, if payable, shall be based on the Purchaser's Initial Offer Price. It
is also understood that no Break Fee shall be payable if the Purchaser
purchases the Shares.
The Purchaser represents and warrants to NetStar that: (a) it is buying the
Shares for its own account without a view to distribution and (b) any
take-over bid will not be made to persons other than shareholders which are
Canadian residents and the take-over bid circular shall contain such
provisions in that regard as are satisfactory to NetStar in its sole
discretion.
4. The Purchaser acknowledges that NetStar has informed the Purchaser that
NetStar is in discussions with a third party to sell the Shares for at
least $3.00 (U.S.) per Share. If at any time NetStar executes an agreement
with a third party to sell the Shares prior to the time that:
a. this agreement becomes a binding agreement under paragraph 3; and
b. i. in the case of an Exempt Transaction, the Purchaser actually
delivers a cheque to NetStar for the aggregate purchase price as
set out above; or
C-2
<PAGE>
ii. in the case of a formal take-over bid, the Purchaser has actually
mailed the take-over bid circular to the shareholders,
NetStar shall have no further obligation to the Purchaser with respect to
the Shares and all obligations under this agreement shall terminate
including NetStar's obligation to pay the Break Fee to the Purchaser. The
Purchaser agrees that if it makes a formal take-over bid, it will not
withdraw or amend the take-over bid (except to increase the consideration
payable per Share or due to a material adverse change in the Company's
business or affairs) after mailing the take-over bid circular to the
shareholders.
5. The Purchaser acknowledges and confirms to NetStar that the Purchaser is
prepared to proceed with the transaction contemplated hereby in accordance
with the terms of this agreement without the Company's board of directors
prior approval.
6. Neither party shall make any public announcement regarding a transaction
between the Purchaser and NetStar in respect of the Shares until the
closing date, unless required by applicable laws; provided however,
NetStar's nominees to the Company's board of directors shall be permitted
to disclose to the other Company directors that NetStar has entered into an
agreement which contemplates a sale of all of the Shares. Each party is
responsible for any fees or expenses incurred by it in connection with this
possible transaction.
7. Any obligation of NetStar to sell the Shares to the Purchaser shall
terminate, in any event, on April 10, 2000.
8. HDL Capital Corporation and Jeffery Kirsch hereby unconditionally and
irrevocably guarantee to NetStar the obligations of the Purchaser set out
herein.
C-3
<PAGE>
If the foregoing reflects our agreement, we would ask that you please confirm
the same by executing this letter in the space provided below by not later than
5:00 p.m. on January 13, 2000.
Yours very truly,
*HDL Capital Corporation
Per:
/s/ B. Grybowski /s/ Jeffrey Kirsch
- ---------------------- ----------------------------
B. Grybowski *Jeffrey Kirsch
*Both of which are signing on behalf of a company to be incorporated, and
without personal liability.
ACCEPTANCE
The undersigned agrees with the terms of this letter this 12th day of January,
2000.
NETSTAR ENTERPRISES INC.
Per: /s/ Lorne C. Stephenson
-------------------------------------------------------------
Lorne C. Stephenson, Executive Vice President, Administration
C-4
