UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. ___)*
SoftQuad Software, Ltd.
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(Name of Issuer)
Common Stock, par value $0.001 per share
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(Title of Class of Securities)
83402G104
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(CUSIP Number)
Mr. Sheldon Inwentash Steven Pretsfelder, Esq.
|_| Pinetree Capital Corporation Laurence W. Futterman, Esq.
130 King Street West, Suite 2810 Baer Marks & Upham LLP
Toronto, Ontario M5X 1A9, Canada 805 Third Avenue
(416) 941-9600 New York, New York 10022
(212) 702-5700
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(Name, Address and Telephone Number of Person Authorized to Receive Notices and
Communications)
April 5, 2000
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(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.
*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
disclosures provided in a prior cover page.
The information required on 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 10 Pages)
<PAGE>
SCHEDULE 13D
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CUSIP No. 83402G104 Page 2 of 10 Pages
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1. NAME OF REPORTING PERSONS:
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Sheldon Inwentash
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_|
(b) |_|
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3 . SEC USE ONLY
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4. SOURCE OF FUNDS
WC
(See Item 3)
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5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e) |_|
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6. CITIZENSHIP OR PLACE OF ORGANIZATION
Canada
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NUMBER OF 7. SOLE VOTING POWER
BENEFICIALLY
OWNED BY EACH -0-
REPORTING PERSON
WITH
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8. SHARED VOTING POWER
2,571,218 shares of Common Stock (See Item 5)
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9. SOLE DISPOSITIVE POWER
-0-
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10.
SHARED DISPOSITIVE POWER
2,571,218 shares of Common Stock (See Item 5)
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<PAGE>
SCHEDULE 13D
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CUSIP No. 83402G104 Page 3 of 10 Pages
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11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,571,218 shares of Common Stock (See Items 3 and 5)
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12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_|
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13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
20.6% (See Item 5)
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14. TYPE OF REPORTING PERSON
IN
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<PAGE>
SCHEDULE 13D
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CUSIP No. 83402G104 Page 4 of 10 Pages
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1. NAME OF REPORTING PERSONS:
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Pinetree Capital Corporation
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_|
(b) |_|
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3 . SEC USE ONLY
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4. SOURCE OF FUNDS
WC
(See Item 3)
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5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e) |_|
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6. CITIZENSHIP OR PLACE OF ORGANIZATION
Ontario, Canada
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NUMBER OF 7. SOLE VOTING POWER
BENEFICIALLY
OWNED BY EACH -0-
REPORTING PERSON
WITH
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8. SHARED VOTING POWER
2,571,218 shares of Common Stock (See Item 5)
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9. SOLE DISPOSITIVE POWER
-0-
--------------------------------------------------------------
10.
SHARED DISPOSITIVE POWER
2,571,218 shares of Common Stock (See Item 5)
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<PAGE>
SCHEDULE 13D
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CUSIP No. 83402G104 Page 5 of 10 Pages
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11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,571,218 shares of Common Stock (See Items 3 and 5)
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12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_|
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13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
20.6% (See Item 5)
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14. TYPE OF REPORTING PERSON
CO
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<PAGE>
SCHEDULE 13D
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CUSIP No. 83402G104 Page 6 of 10 Pages
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Item 1. Security and Issuer
This Schedule 13D relates to the common stock, par value $0.001 per share
(the "Common Stock") issued by SoftQuad Software, Ltd., a Delaware corporation
(the "Company"), the principal offices of which are located at 161 Eglinton
Avenue East, Suite 400, Toronto, Ontario, M4P 1JF, Canada.
Item 2. Identity and Background
(a) This Schedule 13D is filed jointly by Pinetree Capital Corporation,
an Ontario, Canada corporation ("Pinetree") and Sheldon Inwentash
("Inwentash").
(b) The principal office and business address of Pinetree and Inwentash
is 130 King Street West, Suite 2810, Toronto, Ontario, M5X 1A9,
Canada.
(c) The principal business of Pinetree is venture capital and merchant
banking. Inwentash is the Chief Executive Officer of Pinetree.
(d) During the last five years, neither Pinetree nor Inwentash has been
convicted in a criminal proceeding (excluding traffic violations and
similar misdemeanors).
(e) During the last five years, neither Pinetree nor Inwentash has been
party to a civil proceeding of a judicial or administrative body of
competent jurisdiction as a result of which proceeding Pinetree or
Inwentash 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 finding
any violation with respect to such laws.
(f) Inwentash is a citizen of Canada.
Item 3. Source and Amount of Funds or Other Consideration
The source of the funds for the transactions described in Item 5 is
working capital of Pinetree.
Item 4. Purpose of Transaction
The purpose of the acquisitions of the shares of Common Stock reported
herein (see Item 5) is for investment. The transactions reported herein were
carried out and consummated by Pinetree. Inwentash may be deemed to be a
beneficial owner of the Company securities that are held of record by Pinetree
and of those that are beneficially owned by Pinetree, because Inwentash is
Pinetree's Chief Executive Officer and the beneficial owner of 16.3% of the
outstanding shares of Pinetree's equity securities. Inwentash and Pinetree have
entered into a Joint Filing Agreement with respect to this Schedule 13D, which
is annexed as Exhibit 3 hereto.
<PAGE>
SCHEDULE 13D
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CUSIP No. 83402G104 Page 7 of 10 Pages
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Presently, there is no understanding or agreement among Inwentash and Pinetree
for either to act through the other or in conjunction with the other with
respect to the Company's securities at any time in the future. Either Pinetree
or Inwentash, alone or together, may effect additional transactions in the
Company's securities through a variety of possible means, including but not
limited to open market and privately negotiated transactions. Neither Pinetree
nor Inwentash is obligated to increase or decrease his or its holdings, and
depending on future developments, may also in his or its sole discretion
determine at any time or from time to time to acquire additional Company
securities or to sell or otherwise dispose of any or all of his or its Company
securities. Each of Pinetree and Inwentash reserves the right to act with
respect to his or its holdings as he or it deems in his or its best interests.
Except as set forth in this Item 4 or in Item 5, neither Pinetree nor
Inwentash has any present plan or proposal that relates to or would result in
any of the actions specified in clauses (a) through (j) of Item 4 of Schedule
13D.
Item 5. Interest in Securities of the Issuer
(a) Securities Beneficially Owned.
(i) As of November 30, 2000, Pinetree beneficially owned 2,571,218
shares of Common Stock, consisting of (A) 658 shares of Common
Stock held of record by Pinetree; and (B) 2,570,560 shares of
Common Stock beneficially owned by Pinetree by virtue of its
record ownership of 2,570,560 exchangeable shares
("Exchangeable Shares") of SoftQuad Acquisition Corp. ("SAC"),
an Ontario, Canada, corporation and a wholly owned subsidiary
of the Company. Each of those Exchangeable Shares is
exchangeable (for no additional consideration) for one share
of the Company's Common Stock at any time and from time to
time until April 5, 2004. On April 5, 2000, in connection with
the Company's contemporaneous acquisition of SoftQuad
Software, Inc., an Ontario, Canada, corporation ("SoftQuad
Canada"), SAC issued 2,670,560 of its Exchangeable Shares to
Pinetree in exchange for 2,670,560 shares of SoftQuad Canada
common stock then owned by Pinetree. On October 16, 2000,
Pinetree transferred and delivered 100,000 of the Exchangeable
Shares to VC Advantage Limited Partnership, from which it had
borrowed, on an unsecured basis, 100,000 free-trading Shares
of Common Stock on February 29, 2000. See Item 5(c).
(ii) As of November 30, 2000, Inwentash beneficially owned
2,571,218 shares of Common Stock, consisting of (A) 658 shares
of Common Stock held of record by Pinetree; and (B) 2,570,560
shares of common stock beneficially owned by Pinetree by
virtue of its record ownership of 2,570,560 Exchangeable
Shares of SAC (see Item 5(a)(i) above).
<PAGE>
SCHEDULE 13D
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CUSIP No. 83402G104 Page 8 of 10 Pages
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Based on 12,473,472 shares of Common stock reported as outstanding as of
June 30, 2000 on the Company's Form 10-QSB for the three-month period ended on
that date, at November 30, 2000, Pinetree and Inwentash each beneficially owned
approximately 20.6% of the Company's outstanding Common Stock.
(b) Voting and Dispositive Power.
Person Named in Item 5(a) Number of Shares
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Sole Shared
Sole Shared Dispositive Dispositive
Voting Power Voting Power Power Power
Pinetree Capital Corporation -0- 2,571,218 -0- 2,571,218
Sheldon Inwentash -0- 2,571,218 -0- 2,571,218
(c) Transactions in Company Securities. The following purchases and
sales of Common Stock have been made by the persons named in Item
5(a):
<TABLE>
<CAPTION>
Shares Purchased Price per Shares Sold or Price per
Person or Acquired Share (US$) Date Disposed Of Share (US$) Date
------ ---------------- ----------- ---- -------------- ----------- ----
<S> <C> <C> <C> <C> <C> <C>
Pinetree Capital 100,000(1) (1) 2/29/00
Corporation
42,416 $23.01 3/2/00
(open market)
2,670,560 (2) 4/5/00
(Exchangeable
Shares of
SoftQuad
Acquisition
Corp.)(2)
2,074 $23.01 5/31/00
(open market)
20,000 $9.875 8/14/00
(open market)
39,000 $7.125 9/26/00
(open market)
</TABLE>
<PAGE>
SCHEDULE 13D
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CUSIP No. 83402G104 Page 9 of 10 Pages
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<TABLE>
<CAPTION>
Shares Purchased Price per Shares Sold or Price per
Person or Acquired Share (US$) Date Disposed Of Share (US$) Date
------ ---------------- ----------- ---- -------------- ----------- ----
<S> <C> <C> <C> <C> <C> <C>
Pinetree Capital 100,000 (3) 10/16/00
Corporation (Exchangeable
Shares of
SoftQuad
Acquisition
Corp.)(3)
100,000 (4) 10/19/00
100,000 (5) 11/13/00
</TABLE>
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(1) Acquired by an unsecured loan from VC Advantage Limited Partnership.
(2) Acquired in exchange for 2,670,560 shares of the common stock of SoftQuad
Software, Inc., an Ontario, Canada, corporation, in connection with its
acquisition by the Company. Each of the Exchangeable Shares is
exchangeable (for no additional consideration) for one share of the
Company's Common Stock at any time and from time to time until April 5,
2004 (see Item 5(a)(i)).
(3) Transferred and delivered to VC Advantage Limited Partnership.
(4) Acquired upon conversion of 100,000 Exchangeable Shares of Softquad
Acquisition Corp.
(5) Exchanged for 100,000 Exchangeable Shares of Softquad Acquisition Corp.
that were transferred to VC Advantage Limited Partnership on 10/16/00.
(d) Other than the persons set forth in Item 5(c), no person other than
each respective record owner of shares of Common Stock referred to
herein is known to have the right to receive or the power to direct
the receipt of dividends on or the proceeds of the sale of such
shares of Common Stock.
(e) Not Applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to
Securities of the Issuer.
None, other than as described in Items 4 and 5.
Item 7. Material to be Filed as Exhibits.
The following document is filed as an Exhibit:
Exhibit 1 Joint Filing Agreement among Sheldon Inwentash and Pinetree
Capital Corporation, dated December 18, 2000
<PAGE>
SCHEDULE 13D
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CUSIP No. 83402G104 Page 10 of 10 Pages
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Signatures
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SHELDON INWENTASH
Date: December 18, 2000 /s/ Sheldon Inwentash
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Signature
PINETREE CAPITAL CORPORATION
Date: December 18, 2000 By: /s/ Sheldon Inwentash
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Sheldon Inwentash
Chief Executive Officer
