SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
(Amendment No. 4)
Under the Securities Exchange Act of 1934
Endorex Corporation (f/k/a ImmunoTherapeutics, Inc.)
(Name of Issuer)
Common Stock, par value $.001 per share
(Title of Class of Securities)
452916 40 6
(CUSIP Number)
Paramount Capital Asset Management, Inc.
c/o Lindsay A. Rosenwald, M.D.
787 Seventh Avenue
New York, NY 10019
(212) 554-4300
with a copy to:
David R. Walner, Esq.
Paramount Capital Asset Management, Inc.
787 Seventh Avenue
New York, NY 10019
(212) 554-4372
(Name, Address and Telephone Number of Person Authorized to Receive
Notices and Communications)
October 16, 1997
(Date of Event which Requires Filing of this Statement)
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If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Statement because of Rule
13d-1(b)(3) or (4), check the following:
[ ]
Check the following box if a fee is being paid with this Statement:
[ ]
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CUSIP No. [452916406] 13 D Page 3 of 13 Pages
- --------------------------------------------------------------------------------
1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Paramount Capital Asset Management, Inc.
- --------------------------------------------------------------------------------
2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3) SEC USE ONLY
- --------------------------------------------------------------------------------
4) SOURCE OF FUNDS*
00 (see Item 3 below)
- --------------------------------------------------------------------------------
5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEM 2(d) OR 2(e)
[_]
- --------------------------------------------------------------------------------
6) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
7) SOLE VOTING POWER
None
NUMBER -------------------------------------------------
OF 8) SHARED VOTING POWER
SHARES 2,376,720
BENEFICIALLY -------------------------------------------------
OWNED BY 9) SOLE DISPOSITIVE POWER
EACH None
REPORTING -------------------------------------------------
PERSON 10) SHARED DISPOSITIVE POWER
WITH 2,376,720
- --------------------------------------------------------------------------------
11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
2,376,720
- --------------------------------------------------------------------------------
12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES [ ]
- --------------------------------------------------------------------------------
13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
24.2%
- --------------------------------------------------------------------------------
14) TYPE OF REPORTING PERSON
CO
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CUSIP No. [452916406] 13 D Page 4 of 13 Pages
- --------------------------------------------------------------------------------
1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Aries Domestic Fund, L.P.
- --------------------------------------------------------------------------------
2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3) SEC USE ONLY
- --------------------------------------------------------------------------------
4) SOURCE OF FUNDS*
00 (see Item 3 below)
- --------------------------------------------------------------------------------
5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEM 2(d) OR 2(e)
[_]
- --------------------------------------------------------------------------------
6) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
7) SOLE VOTING POWER
None
NUMBER -------------------------------------------------
OF 8) SHARED VOTING POWER
SHARES 745,899
BENEFICIALLY -------------------------------------------------
OWNED BY 9) SOLE DISPOSITIVE POWER
EACH None
REPORTING -------------------------------------------------
PERSON 10) SHARED DISPOSITIVE POWER
WITH 745,899
- --------------------------------------------------------------------------------
11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
745,899
- --------------------------------------------------------------------------------
12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES [ ]
- --------------------------------------------------------------------------------
13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
7.6%
- --------------------------------------------------------------------------------
14) TYPE OF REPORTING PERSON
PN
- --------------------------------------------------------------------------------
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CUSIP No. [452916406] 13 D Page 5 of 13 Pages
- --------------------------------------------------------------------------------
1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
The Aries Fund, A Cayman Island Trust
- --------------------------------------------------------------------------------
2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3) SEC USE ONLY
- --------------------------------------------------------------------------------
4) SOURCE OF FUNDS*
00 (see Item 3 below)
- --------------------------------------------------------------------------------
5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEM 2(d) OR 2(e)
[_]
- --------------------------------------------------------------------------------
6) CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman Islands
- --------------------------------------------------------------------------------
7) SOLE VOTING POWER
None
NUMBER -------------------------------------------------
OF 8) SHARED VOTING POWER
SHARES 1,630,821
BENEFICIALLY -------------------------------------------------
OWNED BY 9) SOLE DISPOSITIVE POWER
EACH None
REPORTING -------------------------------------------------
PERSON 10) SHARED DISPOSITIVE POWER
WITH 1,630,821
- --------------------------------------------------------------------------------
11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
1,630,821
- --------------------------------------------------------------------------------
12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES [ ]
- --------------------------------------------------------------------------------
13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
16.6%
- --------------------------------------------------------------------------------
14) TYPE OF REPORTING PERSON
OO (see Item 2)
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CUSIP No. [452916406] 13 D Page 6 of 13 Pages
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1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Lindsay A. Rosenwald, M.D.
- --------------------------------------------------------------------------------
2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3) SEC USE ONLY
- --------------------------------------------------------------------------------
4) SOURCE OF FUNDS*
00 (see Item 3 below)
- --------------------------------------------------------------------------------
5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEM 2(d) OR 2(e)
[_]
- --------------------------------------------------------------------------------
6) CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- --------------------------------------------------------------------------------
7) SOLE VOTING POWER
None
NUMBER -------------------------------------------------
OF 8) SHARED VOTING POWER
SHARES 2,376,720
BENEFICIALLY -------------------------------------------------
OWNED BY 9) SOLE DISPOSITIVE POWER
EACH None
REPORTING -------------------------------------------------
PERSON 10) SHARED DISPOSITIVE POWER
WITH 2,376,720
- --------------------------------------------------------------------------------
11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
2,376,720
- --------------------------------------------------------------------------------
12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES [ ]
- --------------------------------------------------------------------------------
13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
24.2%
- --------------------------------------------------------------------------------
14) TYPE OF REPORTING PERSON
IN
- --------------------------------------------------------------------------------
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Item 1. Security and Issuer.
(a) Common Stock, $.001 par value ("Shares")
Endorex Corporation (f/k/a ImmunoTherapeutics, Inc.) (the "Issuer")
900 North Shore Blvd. Lake Bluff, IL 60044 (847) 604-7555
Item 2. Identity and Background.
Names of Persons Filing:
(a) This statement is filed on behalf of Paramount Capital Asset
Management, Inc. ("Paramount Capital "), Aries Domestic Fund, L.P.
("Aries Domestic"), The Aries Fund, A Cayman Island Trust ("Aries
Trust") and Lindsay A. Rosenwald, M.D. ("Dr. Rosenwald")(collectively,
"Reporting Parties"). See attached Exhibit A which is a copy of their
agreement in writing to file this statement on behalf of each of them.
(b) The business address of Paramount Capital, Aries Domestic and Dr.
Rosenwald is 787 Seventh Avenue, New York, New York, 10019. The
business address for Aries Trust is c/o MeesPierson (Cayman) Limited,
P.O. Box 2003, British American Centre, Phase 3, Dr. Roy's Drive,
George Town, Grand Cayman.
(c) Dr. Rosenwald is an investment banker, venture capitalist and fund
manager and is the sole shareholder of Paramount Capital,1 a
Subchapter S corporation incorporated in Delaware. Paramount Capital
is the General Partner of Aries Domestic,2 a limited partnership
incorporated in Delaware and is the Investment Manager to Aries
Trust,3 a Cayman Islands Trust.
(d) Dr. Rosenwald, Paramount Capital, Aries Domestic and Aries Trust and
their respective officers, directors, general partners, investment
managers, or trustees have not, during the five years prior to the
date hereof, been con victed in a criminal proceeding (excluding
traffic violations or similar misdemeanors).
(e) Dr. Rosenwald, Paramount Capital, Aries Domestic and Aries Trust and
their respective officers, directors, general partners, investment
managers, or trustees have not been, during the five years prior to
the date hereof, parties to a civil proceeding of a judicial or
administrative body of competent juris diction, as a result of which
such person was or is subject to a judgment, decree or final order
enjoining future violations of, or prohibiting or mandat ing
activities subject to, Federal or State securities laws or finding any
violation with respect to such laws.
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(f) Dr. Rosenwald is a citizen of the United States.
Item 3. Source and Amount of Funds or Other Consideration.
Since the date of Amendment No. 3 to the Original Statement on
Schedule 13-D ("Amendment No. 3"), filed on August 7, 1997, in a
private placement of the 8,648,649 shares of common stock, par value
$.001 per share, of the Issuer (the "Private Placement") in which
Paramount Capital, Inc. acted as Placement Agent, on October 16, 1997,
Aries Domestic used its general funds to purchase, net of commissions,
271,278 shares of Common Stock of the Issuer with attached contractual
rights for an aggregate purchase price of $545,777 and the Aries Trust
used its general funds to purchase, net of commissions, 550,776 shares
of Common Stock of the Issuer with attached contractual rights for an
aggregate purchase price of $1,108,093. The Private Placement had the
net effect of diluting the Reporting Parties' respective percent
interests.
Item 4. Purpose of Transaction.
The Reporting Parties acquired shares of Common Stock of the Issuer as
an investment in the Issuer.
Although the Reporting Parties have not formulated any definitive
plans, they may from time to time acquire, or dispose of, Common Stock
and/or other securities of the Issuer if and when they deem it
appropriate. The Reporting Parties may formulate other purposes, plans
or proposals relating to any of such securities of the Issuer to the
extent deemed advisable in light of market conditions, investment
policies and other factors.
Except as indicated in this Schedule 13D, the Reporting Parties
currently have no plans or proposals that relate to or would result in
any of the matters described in subparagraphs (a) through (j) of Item
4 of Schedule 13D.
Item 5. Interest in Securities of the Issuer.
(a) As of October 16, 1997, Dr. Rosenwald and Paramount Capital, through
acquisition of the shares by the Aries Trust and Aries Domestic,
benefi cially owned 2,376,720 shares or 24.2% of the Issuer's
securities and Aries Domestic and the Aries Trust beneficially owned
as follows:
Amount Owned
------------
Aries Domestic 745,899 Shares
Aries Trust 1,630,821 Shares
(b) Dr. Rosenwald and Paramount Capital share the power to vote or to
direct the vote, to dispose or to direct the disposition of those
shares owned by each of Aries Domestic and Aries Trust.
(c) Other than as set forth in Item 3 above, no open market transactions
were made by Aries Domestic and the Aries Trust in the past 60 days.
- -------------------
1 Please see attached Exhibit B indicating the executive officers and
directors of Paramount Capital and providing information called for by
Items 2-6 of this statement as to said officers and directors. Exhibit B is
herein incorporated by reference.
2 Please see attached Exhibit C indicating the general partner of Aries
Domestic and the general partner's executive officers and directors and
providing information called for by Items 2-6 of this statement as to said
general partners, officers and directors. Exhibit C is herein incorporated
by reference.
3 Please see attached Exhibit D indicating the investment manager of the
Aries Trust and the investment manager's executive officers and direc tors
and providing information called for by Items 2-6 of this statement as to
said investment manager and officers and directors. Exhibit D is herein
incorporated by reference.
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Other than as set forth herein the Reporting Parties have not engaged
in any transactions in the Common Stock of the Issuer during the past
60 days.
(d) & (e) Not applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships with respect to
Securities of the Issuer
Paramount Capital is the Investment Manager of the Aries Trust and the
General Partner of Aries Domestic and in such capacities has the
authority to make certain investment decisions on behalf of such
entities, including decisions relating to the securities of the
Issuer. In connection with its investment management duties, Paramount
Capital receives certain management fees and performance allocations
from the Aries Trust and Aries Domestic.
Dr. Rosenwald is the President and sole shareholder of Paramount
Capital. Mr. Steve Kanzer, a Senior Managing Director of the Placement
Agent (as defined below), joined the Board of Directors of the Issuer
in connection with the initial investment by Aries Domestic and the
Aries Trust in June 1996 and receives compensation for such services.
Pursuant to Article 6 of the Subscription Agreement executed by the
Issuer and each investor in the Private Placement, the Reporting
Parties are entitled to contractual rights (the "Article VI Rights")
attached to the shares of Common Stock acquired in the Private
Placement. The Article VI Rights provide for additional issuances of
Common Stock to the Reporting Persons upon the occurrence of dilution
events, such as issuances of Common Stock (or securities convertible
into, or exercisable for, Common Stock) at a price per share less than
the then current market price or the then-effective price per share
paid by purchasers in the Private Placement, to compensate for such
dilution. The Article VI Rights also provide for additional issuances
of Common Stock on each six month anniversary of the first anniversary
of the final closing of the Private Placement. Furthermore, the
Article VI Rights include a right to put the Common Stock to which
they relate to the Issuer for 130% of the purchase price of such
shares in the Private Placement. The Reporting Persons, however have
covenanted only to exercise such put under certain circumstances.
Paramount Capital, Inc., (the "Placement Agent") an NASD member broker
dealer and an affiliate of Aries Domestic and the Aries Trust has
acted as Placement Agent for the Issuer. and will receive certain fees
for such services including warrants (the "Placement Warrants") to
purchase 864,865 shares of Common Stock with attached contractual
rights at an exercise price equal to $2.54375. On October 16, 1997,
the Issuer and the Placement Agent entered into a twenty-four (24)
month engagement agreement, pursuant to which the Placement Agent is
entitled to receive a cash retainer and standard success fees in
addition to warrants (the "Advisory Warrants")to purchase 1,297,297
shares of Common Stock with attached contractual rights at an exercise
price equal to $2.54375. The Placement and Advisory Warrants will
become exercisable on April 16, 1997.
Except as indicated in this 13D and exhibits, there is no contract,
arrangement, understanding or relationship between the Reporting
Parties and any other person, with respect to any securities of the
Issuer.
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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.
PARAMOUNT CAPITAL ASSET MANAGEMENT, INC.
Dated: October 26, 1997
New York, NY By /s/Lindsay A. Rosenwald, M.D.
------------------------------------------
Lindsay A. Rosenwald, M.D.
President
ARIES DOMESTIC FUND, L.P.
By Paramount Capital Asset Management, Inc.
General Partner
Dated: October 26, 1997
New York, NY By /s/Lindsay A. Rosenwald, M.D.
------------------------------------------
Lindsay A. Rosenwald, M.D.
President
THE ARIES TRUST
By Paramount Capital Asset Management, Inc.
Investment Manager
Dated: October 26, 1997
New York, NY By /s/Lindsay A. Rosenwald, M.D.
------------------------------------------
Lindsay A. Rosenwald, M.D.
President
Dated: October 26, 1997
New York, NY By /s/Lindsay A. Rosenwald, M.D.
------------------------------------------
Lindsay A. Rosenwald, M.D.
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