SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
(Rule 13d-1)
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. 2)
SYLVAN INC.
(Name of Issuer)
Common Stock, Par Value $0.001 Per Share
(Title of Class of Securities)
871371100
(CUSIP Number)
Wynnefield Capital, Inc.
One Penn Plaza - Suite 4720
New York, New York 10119
Attention: Mr. Nelson Obus
(212) 760-0134
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
Copy to:
Louis J. Bevilacqua, Esq.
Cadwalader, Wickersham & Taft
100 Maiden Lane
New York, New York 10038
(212) 504-6057
September 7, 1999
(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: |_|
<PAGE>
13D
CUSIP No 871371100 Page 2 of 8 Pages
- --------------------------------------------------------------------------------
1. NAME OF REPORTING PERSONS: Wynnefield Partners Small Cap Value, L.P.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON 13-3688497
- --------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [x]
(b) [_]
- --------------------------------------------------------------------------------
3. SEC USE ONLY
- --------------------------------------------------------------------------------
4. SOURCE OF FUNDS
WC (SEE ITEM 3)
- --------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
(2)(d) OR (e) [_]
- --------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
- --------------------------------------------------------------------------------
7. SOLE VOTING POWER
NUMBER OF 354,797
SHARES ----------------------------------------------------------
BENEFICIALLY 8. SHARED VOTING POWER
OWNED BY ----------------------------------------------------------
EACH 9. SOLE DISPOSITIVE POWER
REPORTING 354,797
PERSON ----------------------------------------------------------
WITH 10. SHARED DISPOSITIVE POWER
- --------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
354,797 shares
- --------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
- --------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.76%
- --------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON*
PN
- --------------------------------------------------------------------------------
<PAGE>
13D
CUSIP No 871371100 Page 3 of 8 Pages
- --------------------------------------------------------------------------------
1. NAME OF REPORTING PERSONS: Wynnefield Small Cap Value, L.P. I
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON: 13-3953291
- --------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [x]
(b) [_]
- --------------------------------------------------------------------------------
3. SEC USE ONLY
- --------------------------------------------------------------------------------
4. SOURCE OF FUNDS
WC (SEE ITEM 3)
- --------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
(2)(d) OR (e) [_]
- --------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
- --------------------------------------------------------------------------------
7. SOLE VOTING POWER
NUMBER OF 472,203
SHARES ----------------------------------------------------------
BENEFICIALLY 8. SHARED VOTING POWER ---
OWNED BY ----------------------------------------------------------
EACH 9. SOLE DISPOSITIVE POWER
REPORTING 472,203
PERSON ----------------------------------------------------------
WITH 10. SHARED DISPOSITIVE POWER
- --------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
472,203 shares
- --------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
- --------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.67%
- --------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON*
PN
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<PAGE>
13D
CUSIP No 871371100 Page 4 of 8 Pages
- --------------------------------------------------------------------------------
1. NAME OF REPORTING PERSONS: Wynnefield Small Cap Value Offshore Fund, Ltd.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON: Not Applicable
- --------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [x]
(b) [_]
- --------------------------------------------------------------------------------
3. SEC USE ONLY
- --------------------------------------------------------------------------------
4. SOURCE OF FUNDS
WC (SEE ITEM 3)
- --------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
(2)(d) OR (e) [_]
- --------------------------------------------------------------------------------
6. Cayman Islands
- --------------------------------------------------------------------------------
7. SOLE VOTING POWER
NUMBER OF 165,500
SHARES ----------------------------------------------------------
BENEFICIALLY 8. SHARED VOTING POWER
-----
OWNED BY ----------------------------------------------------------
EACH 9. SOLE DISPOSITIVE POWER
REPORTING 165,500
PERSON ----------------------------------------------------------
WITH 10. SHARED DISPOSITIVE POWER
-----
- --------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
165,500 shares
- --------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
- --------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.69%
- --------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON*
CO
- --------------------------------------------------------------------------------
<PAGE>
Page 5 of 8 Pages
This Amendment No. 2 relates to the Schedule 13D originally filed on
behalf of Wynnefield Partners Small Cap Value, L.P. (the "Partnership"),
Wynnefield Small Cap Value, L.P. I (the "Partnership-I") and Wynnefield Small
Cap Value Offshore Fund, Ltd. (the "Fund"), with the Securities and Exchange
Commission ("SEC") on May 7, 1999 (as amended on August 9, 1999, the "Schedule
13D"), with respect to the common stock (the "Shares") of Sylvan Inc. (the
"Issuer"). The Partnership, the Partnership-I and the Fund are sometimes
referred to collectively as the "Wynnefield Group." Except as modified hereby,
there has been no change in the information previously reported in the Schedule
13D.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
The Wynnefield Group entities purchased their Shares for the
consideration shown in the following table:
Total Consideration
Name Number of Shares Paid
---- ---------------- -------------------
Partnership 354,797 $3,839,205
Partnership-I 472,203 $5,403,870
Fund 165,500 $1,899,413
Such Shares were paid for from the working capital of each entity in
the Wynnefield Group, each of which maintains an investment fund, consisting of
capital contributions from their respective partners and investors and capital
appreciation derived therefrom for the principal purpose of buying and selling
securities (including financial and money market instruments) and interests in
domestic and foreign securities, including, without limitation, convertible
securities, stock index features contracts, options, puts and calls on stock and
warrants.
ITEM 4. PURPOSE OF TRANSACTION.
The entities comprising the Wynnefield Group intend to urge the
Issuer's management and its Board of Directors to consider all strategic options
for surfacing shareholders' value. Mr. Nelson Obus is also considering seeking
election to the Issuer's Board of Directors.
Except as set forth above, none of the entities in the Wynnefield
Group has any present plans or intentions to effect transactions that would
result in or relate to any of the actions described in subparagraphs (a) through
(j) of Item 4 of Schedule 13D.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
(a) As of the close of business on the date hereof, the entities
comprising the Wynnefield Group beneficially owned a total of 992,500 Shares,
the separate ownership of which is set forth in Item 3 of this Statement. The
Shares owned by the Wynnefield Group represent approximately 16.12% of the
outstanding Shares of the Issuer, based on the 6,156,136 Shares reported by the
Issuer as outstanding on July 23, 1999. Pursuant to Rule 13d-4 of the General
Rules and Regulations under the Securities and Exchange Act of 1934, as amended
(the
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Page 6 of 8 Pages
"Exchange Act"), Mr. Nelson Obus and Mr. Joshua Landes disclaim beneficial
ownership of any Shares owned by the entities comprising the Wynnefield Group
and disclaim membership in the Wynnefield Group with respect to the Shares for
purposes of Sections 13(d) and 13(g) of the Exchange Act and for any other
purpose under any other provision of the Exchange Act and the rules and
regulations promulgated thereunder.
(b) Mr. Obus and Mr. Landes, by virtue of their status as managing
members of Wynnefield Capital Management, LLC, a New York limited liability
company ("WCW"), the general partner of the Partnership and Partnership-I, and
as officers of the Fund's investment manager, have the power to vote or to
direct the vote and the power to dispose and to direct the disposition of the
Shares owned by each of the entities comprising the Wynnefield Group and may be
deemed to have indirect beneficial ownership of the Shares owned by each of the
entities comprising the Wynnefield Group.
Since the Wynnefield Group's most recent filing on Schedule 13D with
respect to the Issuer, the entities comprising the Wynnefield Group purchased
the following Shares of Issuer in the NASDAQ Stock Market:
Entity Date No. of Shares Price Per Share ($)
------ ---- ------------- -------------------
Partnership 8/05/99 3,100 10.7500
Partnership 8/10/99 1,400 10.6250
Partnership 8/11/99 3,600 10.8750
Partnership 8/13/99 1,800 10.8750
Partnership 8/13/99 3,600 10.8750
Partnership 8/19/99 1,800 11.7500
Partnership 8/24/99 2,500 12.0625
Partnership 8/27/99 124,000 10.6285
Partnership 9/07/99 28,500 10.2253
Partnership I 8/05/99 4,000 10.7500
Partnership I 8/10/99 1,900 10.6250
Partnership I 8/11/99 4,700 10.8750
Partnership I 8/13/99 2,300 10.8750
Partnership I 8/13/99 4,700 10.8750
Partnership I 8/19/99 2,300 11.7500
Partnership I 8/24/99 3,300 12.0625
Partnership I 8/27/99 2,500 10.5000
Partnership I 8/27/99 164,000 10.6285
Partnership I 9/07/99 37,800 10.2197
Fund 8/05/99 1,400 10.7500
Fund 8/10/99 700 10.6250
Fund 8/11/99 1,700 10.8750
Fund 8/13/99 900 10.8750
Fund 8/13/99 1,700 10.8750
Fund 8/19/99 900 11.7500
<PAGE>
Page 7 of 8 Pages
Fund 8/24/99 1,200 12.0625
Fund 8/27/99 72,000 10.6284
Fund 9/07/99 13,700 10.1322
(d) Each of the entities comprising the Wynnefield Group as an owner
of the Shares reported in this Statement has the right to receive or the power
to direct the receipt of dividends from, or the proceeds from the sale of, the
Shares owned by such entity as reported in this Statement.
(e) Not applicable.
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Page 8 of 8 Pages
SIGNATURES
After reasonable inquiry and to the best of their knowledge and belief,
the undersigned certify that the information set forth in this Statement is
true, complete and correct.
Dated: September 10, 1999
WYNNEFIELD PARTNERS SMALL CAP VALUE, L.P.
WYNNEFIELD PARTNERS SMALL CAP VALUE, L.P. I
By: /s/ Nelson Obus
------------------------------------------
By: /s/ Nelson Obus
--------------------------------------------
Nelson Obus
Managing Member
WYNNEFIELD SMALL CAP VALUE OFFSHORE FUND, LTD.
By: /s/ Nelson Obus
--------------------------------------------
Nelson Obus
President
