SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 2)*
Genta Incorporated
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(Name of Issuer)
Common Stock, par value $.001 per share
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(Title of Class of Securities)
372 45 M 20 7
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(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. Monica C. Lord, Esq.
Paramount Capital Asset Kramer, Levin,
Management, Inc. Naftalis & Frankel
787 Seventh Avenue 919 Third Avenue
New York, NY 10019 New York, NY 10022
(212) 554-4372 (212) 715-9100
(Name, Address and Telephone Number of Person Authorized to Receive Notices
and Communications)
September 11, 1997
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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 which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(b)(3) or (4), check the following: [_]
Note: Six copies of this statement, including all exhibits, should be filed with
the Commission. See Rule 13d- 1(a) 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 9 Pages
<PAGE>
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CUSIP No. 372 45 M 20 7 13D Page 2 of 9 Pages
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1 NAMES OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Paramount Capital Asset Management, Inc.
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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*
OO (see Item 3)
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) or 2(e)
[_]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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7 SOLE VOTING POWER
None
NUMBER OF --------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 13,966,335**
EACH --------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH None
--------------------------------------------
10 SHARED DISPOSITIVE POWER
13,966,335**
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
13,966,335**
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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)
76.2% (40.6% of the outstanding voting power)***
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14 TYPE OF REPORTING PERSON*
CO
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** Does not include shares of Common Stock (the "Note Interest Common Shares")
issuable upon conversion of the Series D Convertible Preferred Stock issuable
upon conversion of the interest on the 12% Senior Secured Convertible Bridge
Notes. At August 31, 1997, Paramount Capital Asset Management, Inc. may have
been deemed beneficially to own (within the meaning of Rule 13d-3 under the
Securities Exchange Act of 1934, as amended) 374,039 Note Interest Common
Shares.
*** The outstanding shares of Series D Preferred Stock of the Issuer are
entitled to vote together with the holders of Common Stock on all matters
submitted to a vote of stockholders of the Issuer. As of September 16, 1997,
Paramount Capital Asset Management, Inc. may be deemed beneficially to own
(within the meaning of Rule 13d-3 under the Securities Exchange Act of 1934, as
amended) 40.6% of the aggregate voting power of the Common Stock and Series D
Preferred Stock outstanding.
<PAGE>
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CUSIP No. 372 45 M 20 7 13D Page 3 of 9 Pages
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1 NAMES OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Aries Domestic Fund, L.P.
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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*
OO (see Item 3)
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) or 2(e)
[_]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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7 SOLE VOTING POWER
None
NUMBER OF --------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 4,883,643**
EACH --------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH None
--------------------------------------------
10 SHARED DISPOSITIVE POWER
4,883,643**
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,883,643**
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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)
26.7% (14.2% of the outstanding voting power)***
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14 TYPE OF REPORTING PERSON*
PN
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** Does not include Note Interest Common Shares. At August 31, 1997, the Aries
Domestic Fund, L.P. may have been deemed beneficially to own (within the meaning
of Rule 13d-3 under the Securities Exchange Act of 1934, as amended) 130,649
Note Interest Common Shares.
*** The outstanding shares of Series D Preferred Stock of the Issuer are
entitled to vote together with the holders of Common Stock on all matters
submitted to a vote of stockholders of the Issuer. As of September 16, 1997, the
Aries Domestic Fund, L.P. may be deemed beneficially to own (within the meaning
of Rule 13d-3 under the Securities Exchange Act of 1934, as amended) 14.2% of
the aggregate voting power of the Common Stock and Series D Preferred Stock
outstanding.
<PAGE>
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CUSIP No. 372 45 M 20 7 13D Page 4 of 9 Pages
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1 NAMES OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
The Aries Trust
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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*
OO (see Item 3)
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) or 2(e)
[_]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman Islands
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7 SOLE VOTING POWER
None
NUMBER OF --------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 9,082,692**
EACH --------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH None
--------------------------------------------
10 SHARED DISPOSITIVE POWER
9,082,692**
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
9,082,692**
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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)
49.5% (26.4% of the outstanding voting power)***
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14 TYPE OF REPORTING PERSON*
OO (see Item 2)
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** Does not include Note Interest Common Shares. At August 31, 1997, The Aries
Trust may have been deemed beneficially to own (within the meaning of Rule 13d-3
under the Securities Exchange Act of 1934, as amended) 243,390 Note Interest
Common Shares.
*** The outstanding shares of Series D Preferred Stock of the Issuer are
entitled to vote together with the holders of Common Stock on all matters
submitted to a vote of stockholders of the Issuer. As of September 16, 1997, The
Aries Trust may be deemed beneficially to own (within the meaning of Rule 13d-3
under the Securities Exchange Act of 1934, as amended) 26.4% of the aggregate
voting power of the Common Stock and Series D Preferred Stock outstanding.
<PAGE>
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CUSIP No. 372 45 M 20 7 13D Page 5 of 9 Pages
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1 NAMES OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Lindsay A Rosenwald, M.D.
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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*
OO (see Item 3)
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) or 2(e)
[_]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
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7 SOLE VOTING POWER
None
NUMBER OF --------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 13,966,335**
EACH --------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH None
--------------------------------------------
10 SHARED DISPOSITIVE POWER
13,966,335**
- -------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
13,966,335**
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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)
76.2% (40.6% of the outstanding voting power)**
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14 TYPE OF REPORTING PERSON*
IN
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** Does not include Note Interest Common Shares. At August 31, 1997, Lindsay A.
Rosenwald, M.D. may have been deemed beneficially to own (within the meaning of
Rule 13d-3 under the Securities Exchange Act of 1934, as amended) 374,039 Note
Interest Common Shares.
*** The outstanding shares of Series D Preferred Stock of the Issuer are
entitled to vote together with the holders of Common Stock on all matters
submitted to a vote of stockholders of the Issuer. As of September 16, 1997,
Lindsay A. Rosenwald, M.D. may be deemed beneficially to own (within the meaning
of Rule 13d-3 under the Securities Exchange Act of 1934, as amended) 40.6% of
the aggregate voting power of the Common Stock and Series D Preferred Stock
outstanding.
<PAGE>
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CUSIP No. 372 45 M 20 7 13D Page 6 of 9 Pages
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1 NAMES OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Mr. Michael S. Weiss
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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 SOURCE OF FUNDS*
PF (see Item 3)
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) or 2(e)
[_]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
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7 SOLE VOTING POWER
16,644
NUMBER OF --------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY None
EACH --------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 16,644
--------------------------------------------
10 SHARED DISPOSITIVE POWER
None
- -------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
16,644
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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)
0.4% (less than 0.1% of the outstanding voting power)**
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14 TYPE OF REPORTING PERSON*
IN
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** The outstanding shares of Series D Preferred Stock of the Issuer are entitled
to vote together with the holders of Common Stock on all matters submitted to a
vote of stockholders of the Issuer. As of September 16, 1997, Mr. Michael S.
Weiss may be deemed beneficially to own (within the meaning of Rule 13d-3 under
the Securities Exchange Act of 1934, as amended) less than 0.1% of the aggregate
voting power of the Common Stock and Series D Preferred Stock outstanding.
<PAGE>
SCHEDULE 13D
This Amendment No. 2 amends and supplements the following Items of the
Reporting Persons' Statement on Schedule 13D, dated February 24, 1997, as
amended to date, (the "Schedule").
ITEM 4. PURPOSE OF TRANSACTION.
The information contained in Item 4 to the Schedule is hereby amended
and supplemented to read in its entirety as follows:
The Filing Persons acquired securities of the Issuer as an investment
in the Issuer. Except as indicated in this Schedule 13D, the Filing Persons
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. Pursuant to Section 7.20 of the Note and Warrant Purchase Agreement, the
Aries Reporting Persons have the right to designate nominees constituting a
majority of the members of the Board of Directors of the Issuer. Thomas H. Adams
resigned from the Board of Directors of the Issuer, on which he had served as
Chairman of the Board of Directors, and the Aries Reporting Persons designated
Mr. Weiss as a nominee for Director and he was appointed by the Board and
elected Interim Chairman of the Issuer's Board of Directors. David R. Walner, an
Associate Director of Paramount Capital, Inc. and an Associate Director and
Secretary of Paramount Capital, was appointed Secretary of the Issuer on May 5,
1997. On September 11, 1997, the Aries Reporting Persons designated Glenn L.
Cooper, M.D., Donald G. Drapkin, Bobby W. Sandage, Jr., Ph.D. and Andrew J.
Stein as nominees to the Board of Directors of the Company (the "Board"). Mr.
Weiss stepped down as Interim Chairman and the Board elected Mr. Drapkin
Chairman and Mr. Weiss Vice Chairman. The Reporting Persons have also discussed
with management of the Issuer, and are assisting the Issuer in, the hiring of an
individual to fill the present vacancy in the position of Chief Executive
Officer for the Issuer. In connection with the Loan and the related transactions
(collectively, the "Transactions"), the Issuer amended its Shareholder Rights
Agreement (the "Plan") dated as of October 1, 1993, to provide that the Plan
would not be applicable to the Aries Reporting Persons and the Transactions.
Aries Trust and Aries Domestic entered into a Line of Credit Agreement with the
Issuer pursuant to which Aries Trust and Aries Domestic provided the Issuer with
a line of credit of up to $500,000, which subsequently was repaid, in
consideration for warrants (the "Line of Credit Warrants") in the forms filed as
Exhibits N and O to Amendment No. 1 to Schedule 13D dated July 24, 1997, to
purchase 50,000 shares of Common Stock of the Issuer exerciseable at $2.50 per
share, subject to adjustment upon the occurrence of certain events. The Filing
Persons 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 Filing
Persons 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.
Page 7 of 9 Pages
<PAGE>
ITEM 5. INTEREST IN SECURITIES OF ISSUER.
The information contained in Item 5 to the Schedule is hereby amended
and supplemented to read in its entirety as follows:
(a) As of September 16, 1997, Dr. Rosenwald and Paramount Capital,
through the acquisitions of securities by Aries Trust and Aries
Domestic, may be deemed beneficially to own 13,966,335 shares or
76.2% of the Issuer's Common Stock (not including the Note
Interest Common Shares), and Aries Domestic, Aries Trust and Mr.
Weiss may be deemed beneficially to own the following number of
shares of Common Stock (in each case, not including any Note
Interest Common Shares):
Aries Domestic 4,883,643
Aries Trust 9,082,692
Mr. Weiss 16,644
Pursuant to Rule 13d-4 promulgated under the Securities Exchange
Act of 1934, as amended, the Filing Persons disclaim beneficial
ownership of all the Common Stock except the Purchased Common
Stock. Pursuant to Rule 13d-4 promulgated under the Securities
Exchange Act of 1934, as amended, the Aries Reporting Persons and
Mr. Weiss each disclaim beneficial ownership of all securities
held by the other.
The outstanding shares of Series D Preferred Stock of the Issuer
are entitled to vote together with the holders of Common Stock on
all matters submitted to a vote of stockholders of the Issuer. As
of September 16, 1997, the Aries Reporting Persons may be deemed
beneficially to own (within the meaning of Rule 13d-3 under the
Securities Exchange Act of 1934, as amended) 40.6% of the
aggregate voting power of the Common Stock and Series D Preferred
Stock outstanding (not including the Note Interest Common
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. Mr. Weiss
has the sole power to direct the vote and to dispose or to direct
the disposition of the shares that he owns.
(c) The Reporting Persons have not engaged in any transactions in the
Common Stock of the Issuer in the past 60 days, except to the
extent that the accrual of interest on the Notes pursuant to
their terms may be deemed a transaction.
(d) & (e) Not applicable.
Page 8 of 9 Pages
<PAGE>
SIGNATURES
After reasonable inquiry and to the best knowledge and belief of the
undersigned, the undersigned certify that the information set forth in this
statement is true, complete and correct.
PARAMOUNT CAPITAL ASSET MANAGEMENT, INC.
Dated: September 18, 1997
New York, NY By: /s/ Lindsay A. Rosenwald
---------------------------------------
Lindsay A. Rosenwald, M.D.
President
ARIES DOMESTIC FUND, L.P.
By: Paramount Capital Asset Management, Inc.
General Partner
Dated: September 18, 1997
New York, NY By: /s/ Lindsay A. Rosenwald
---------------------------------------
Lindsay A. Rosenwald, M.D.
President
THE ARIES TRUST
By: Paramount Capital Asset Management, Inc.
General Partner
Dated: September 18, 1997
New York, NY By: /s/ Lindsay A. Rosenwald
---------------------------------------
Lindsay A. Rosenwald, M.D.
President
Dated: September 18, 1997
New York, NY By: /s/ Lindsay A. Rosenwald
---------------------------------------
Lindsay A. Rosenwald, M.D.
Dated: September 18, 1997
New York, NY By: /s/ Michael S. Weiss
---------------------------------------
Mr. Michael S. Weiss
Page 9 of 9 Pages
