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Previous: PHOENIX DUFF & PHELPS CORP, 8-K, 1997-09-18 |
Next: PROVIDIAN LIFE & HEALTH INSURANCE CO SEPARATE ACCOUNT V, 497, 1997-09-18 |
<PAGE>
PROSPECTUS SUPPLEMENT File No. 333-13621
(TO PROSPECTUS DATED OCTOBER 22, 1996) Filed Pursuant to Rule 424(b)(3)
Under the Securities Act of 1933
----------------------------
SPARTA PHARMACEUTICALS, INC.
----------------------------
On October 7, 1996, Sparta Pharmaceuticals, Inc., a Delaware
corporation (the "Company"), filed with the Securities and Exchange Commission
(the "Commission") a Registration Statement on Form S-3 (Registration No.
333-13621) (the "Registration Statement") relating to the offer by certain
securityholders named in the Registration Statement (collectively, the "Selling
Securityholders") for sale to the public of, among other things, (i) 11,309,822
shares of the Company's Common Stock, $.001 par value ("Common Stock"), issuable
upon the conversion of then outstanding shares of the Company's Series B'
Convertible Preferred Stock, $.001 par value ("Series B' Preferred Stock") and
(ii) pursuant to Rule 416 promulgated under the Securities Act of 1933, as
amended, an indeterminable number of shares of Common Stock that may be issued
pursuant to anti-dilution and other similar provisions of the Series B'
Preferred Stock. The Registration Statement was declared effective on October
22, 1996. Defined terms used but not otherwise defined herein shall have the
meanings ascribed thereto in the Registration Statement and in the Prospectus
dated October 22, 1996 contained therein (the "Prospectus"). This Prospectus
Supplement should be read in conjunction with the Prospectus.
The Certificate of Designations of Series B' Convertible
Preferred Stock filed by the Company with the Secretary of State of Delaware
sets forth the voting and other powers, preferences and relative participating,
optional or other rights of the shares of Series B' Preferred Stock and the
qualifications, limitations and restrictions thereof (the "Certificate"). The
Certificate provided that each share of Series B' Preferred Stock initially
could be converted at the option of the holder at any time after the issuance
date into 6.666667 shares of Common Stock at a conversion price (the "Conversion
Price") equal to $1.50, subject to adjustment under certain circumstances. The
Conversion Price was adjusted on August 23, 1997 (the "Reset Date") because the
average closing bid price of the Common Stock for the thirty consecutive trading
days immediately preceding the Reset Date was less than 130% of the then
applicable Conversion Price (the "Reset Event"). As a result of the Reset Event,
the Conversion Price was reduced to equal 50% of the then applicable Conversion
Price and, from and after the Reset Date, each share of Series B' Preferred
Stock currently outstanding may be converted into 13.333333 shares of Common
Stock at the adjusted Conversion Price of $.75. Accordingly, the Registration
Statement shall be deemed to relate to the offer for sale by the Securityholders
of an additional 9,386,507 shares of Common Stock issuable upon conversion of
currently outstanding shares of Series B' Preferred Stock and an additional
1,131,000 shares of Common Stock issuable upon conversion of the shares of
Series B' Preferred Stock issuable upon exercise of the Preferred Stock
Warrants.
As a result of the Reset Event, the number of shares of Common
Stock issuable upon conversion of the Series B' Preferred Stock that continue to
be offered by the Selling Securityholders pursuant to the Registration Statement
and the Prospectus as reflected under the heading "SELLING SECURITYHOLDERS" was
increased 100%. Accordingly, the section entitled "SELLING SECURITYHOLDERS" in
the Prospectus is hereby amended and restated to give effect to the Reset Event.
In addition, on November 29, 1996, the lock-up agreements described in the
Prospectus expired by their terms and those shares subject to the lock-up
agreements became eligible for immediate resale on that date. The number of
shares reflected below on the amended and restated SELLING SECURITYHOLDERS table
includes those shares, but does not include any securities reflected on the
original SELLING SECURITYHOLDERS table in the Prospectus that have been resold
pursuant to the Offering since the date of the Prospectus.
The Common Stock is traded on The NASDAQ SmallCap Market under
the symbol "SPTA." On September 12, 1997, the last sale price of the Common
Stock was $.625 per share.
<PAGE>
SELLING SECURITYHOLDERS
The following table sets forth as of the date of this
Prospectus Supplement (i) the name of each Selling Securityholder, (ii) the
number of shares of Common Stock beneficially owned, whether outstanding or
issuable, by such holder before the Offering (not including fractional shares
for which due Company will pay cash), (iii) the number of shares of Common Stock
that may be offered by each Selling Securityholder, (iv) the number of Class C
Warrants that may be offered by each Selling Securityholder, and (v) the number
and percentage of shares of Common Stock to be owned by each Selling
Securityholders upon completion of the Offering. Except as otherwise indicated,
each named Selling Securityholder has, to the best of the Company's knowledge,
sole voting and investment power with respect to the securities indicated.
<TABLE>
<CAPTION>
Percentage of
Number of Number of Number of Number of Shares Common
Shares of Shares of Class C of Common Stock
Common Stock Common Stock Warrants that Stock Owned Owned after
Name of Selling owned prior to that may be may be after the the
Securityholder the Offering(1) Offered(2) Offered Offering(6) Offering(6)
- -------------- --------------- ---------- ------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Ross David Ain 26,658 26,658 8,886 - *
Vito R. Capotorto 44,440 44,440 22,220 - *
Stephen & Linda Ciaccio 66,660 66,660 22,220 - *
JTWROS
Robert J. Conrads 133,320 133,320 44,440 - *
Robert B. Daly & Marietta 66,660 66,660 22,220 - *
Daly JTWROS
Delaware Charter Guarantee & 66,660 66,660 22,220 - *
Trust Co. C/F Anthony G.
Polak IRA
Domaco Venture Capital Fund 66,660 66,660 22,220 - *
Isaac R. Dweck 66,660 66,660 66,660 - *
Richard Elkin 66,660 66,660 22,220 - *
Fahnestock & Co., Inc. C/F 66,660 66,660 22,220 - *
Ronald M. Lazar IRA
S. Edmond Farber 66,660 66,660 22,220 - *
Clara Glory & George Glory 66,660 66,660 22,220 - *
JTWROS
Robert P. Gordon 106,659 106,659 35,553 - *
Stanley Gottlieb & Elaine 66,660 66,660 22,220 - *
Gottlieb JTWROS
Fred Kassner 133,320 133,320 44,440 - *
Edward Justin Kelly 66,660 66,660 22,220 - *
</TABLE>
-2-
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Donald R. Kendall, Jr. & Diane 39,978 39,978 13,326 - *
S. Kendall JTWROS
Susan Tauber Lemor 133,320 133,320 44,440 - *
Phil Lifschitz 43,940 43,940 43,940 - *
The Lincoln Fund Tax 44,440 44,440 44,440 - *
Advantaged, L.P.
Harris R. L. Lydon 85,425 66,660 22,220 18,765 *
Paulette Tauber Mintz 133,320 133,320 44,440 - *
Nikki Establishment for 266,658 266,658 88,886 - *
Fashion & Marketing
Research
Palmetto Partners, Ltd. 151,106 151,106 75,553 - *
Richard H. Pollak 66,660 66,660 22,220 - *
RHL Associates, L.P. 133,320 133,320 44,440 - *
J.F. Shea Co., Inc., as Nominee 237,772 177,772 88,886 60,000 *
1996-5
Andrew W. Schonzeit 66,660 66,660 22,220 - *
Steven A. Sherman 39,978 39,978 13,326 - *
Michael Siciliano 44,440 44,440 22,220 - *
Martin Sirotkin 44,440 44,440 44,440 - *
Martin Sirotkin Rev. Trust 44,440 44,440 - - *
Alan & Esti Stahler JTWROS 359,091 142,212 71,106 216,879 2.114%
Gary J. Strauss 66,660 66,660 22,220 - *
Hindy H. Taub 66,660 66,660 22,220 - *
Irwin Tauber 133,320 133,320 44,440 - *
Venturetek, L.P. 266,652 266,652 133,326 - *
Aaron Wolfson 266,658 266,658 88,886 - *
Abraham Wolfson 266,658 266,658 88,886 - *
Morris Wolfson Family 199,980 199,980 66,660 - *
Limited Partnership
Wolfson Equities 799,980 799,980 266,660 - *
Kenton E. Wood 44,440 44,440 22,220 - *
Jonathan M. Young & 66,660 66,660 22,220 - *
Lyudmila Young JTWROS
The Hope Investment Co., Inc. 266,658 266,658 88,886 - *
</TABLE>
-3-
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Keys Foundation 266,658 266,658 88,886 - *
Tis Prager 133,320 133,320 44,440 - *
The Bridge Fund N.V. 66,660 66,660 66,660 - *
David C. Hale 133,320 133,320 44,440 - *
Kalman Renov and Ruki D. 446,166 142,212 71,106 303,954 2.963%
Renov JTWROS (5)
Swan Alley (Nominees) 86,880 86,880 44,440 - *
Limited
Windsor Produce Inc. 66,660 66,660 22,220 - *
Jonathan Rothschild 66,660 66,660 22,220 - *
GHA Management Corporation 44,440 44,440 44,440 - *
RL Capital Partners 66,660 66,660 22,220 - *
Marion Talansky 266,658 266,658 88,886 - *
Lillian Tauber 133,320 133,320 44,440 - *
Martin Tauber 133,320 133,320 44,440 - *
Ronald S. Baruch 64,998 64,998 11,666 - *
David J. Bershad 199,998 199,998 66,666 - *
Atrix Ventana Investment and 731,460 731,460 243,820 - *
Company, Limited Partnership
Seymour Buehler 49,998 49,998 16,666 - *
Richard B. Chanin 49,998 49,998 16,666 - *
Chesed Congregations of 399,999 399,999 133,333 - *
America
Morris J. Kramer, Trustee, U/A 83,331 83,331 27,777 - *
Donald G. Drapkin, Dtd.
11/20/87 F/B/O Matthew
Adam Drapkin
Morris J. Kramer, Trustee, U/A 83,331 83,331 27,777 - *
Donald G. Drapkin, Dtd.
11/20/87 F/B/O Dana Gabrielle
Drapkin
Morris J. Kramer, Trustee, U/A 83,331 83,331 27,777 - *
Donald G. Drapkin, Dtd.
11/20/87 F/B/O Nicole
Michele Drapkin
</TABLE>
-4-
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Morris J. Kramer, Trustee, U/A 83,331 83,331 27,777 - *
Donald G. Drapkin, Dtd.
11/20/87 F/B/O Dustin
Joseph Drapkin
Morris J. Kramer, Trustee, U/A 83,331 83,331 27,777 - *
Donald G. Drapkin, Dtd.
10/25/88 F/B/O David Guy
Drapkin
Morris J. Kramer, Trustee, U/A 83,343 83,343 27,781 - *
Donald G. Drapkin, Dtd.
7/10/92 F/B/O Amanda Paige
Drapkin
Nathan Eisen & Rose Eisen 99,999 99,999 33,333 - *
Colony Partners 66,666 66,666 66,666 - *
Jerome Fisch 49,998 49,998 16,666 - *
Morris Friedman 49,998 49,998 16,666 - *
Gilbert Goldstein, Paul Shapiro 499,998 499,998 166,666 - *
Trust
Jackson Hole Acquisitions 199,998 199,998 66,666 - *
Investment L.P.
Robert Klein, M.D. & Myriam 199,998 199,998 66,666 - *
Gluck, M.D.
Benjamin Lehrer 49,998 49,998 16,666 - *
Frank J. Lincoln, Jr. 99,999 99,999 33,333 - *
Gene T. Mancinelli 199,998 199,998 66,666 - *
Marathon Agents Profit 49,998 49,998 16,666 - *
Sharing
Michael Marcus 399,999 399,999 133,333 - *
John P. McNiff 199,998 199,998 66,666 - *
Josef Mermelstein 99,999 99,999 33,333 - *
Richard Molinsky 49,998 49,998 16,666 - *
MSI Investments Ltd. 99,999 99,999 33,333 - *
Ruth Peyser 49,998 49,998 16,666 - *
Bruce Pomper IRA 534,000 534,000 200,000 - *
David W. Ruttenberg 49,998 49,998 16,666 - *
Robin Schlaff 49,998 49,998 16,666 - *
Andrew W. Schonzeit 99,999 99,999 33,333 - *
</TABLE>
-5-
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
E. Donald Shapiro 33,332 33,332 - - *
Aaron Speisman 49,998 49,998 16,666 - *
Herbert Stein and Elaine Stein 16,666 16,666 16,666 - *
JTWROS
Hindy H. Taub 99,999 99,999 33,333 - *
Ventana Growth Capital Fund 168,540 168,540 56,180 - *
V.L.P
Vivaldi Ltd. 166,666 166,666 166,666 - *
The M & B Weiss Family Ltd. 133,332 133,332 - - *
Partnership of 1996
Alan Wise & Teri Wise 49,998 49,998 16,666 - *
JTWROS
Richard B. Stone 199,998 199,998 66,666 - *
Heracles Fund 199,998 199,998 66,666 - *
Bruce Slovin 199,998 199,998 66,666 - *
Larich Associates 150,000 150,000 50,000 - *
Patrick M. Kane 99,999 99,999 33,333 - *
Benjamin Bollag 199,998 199,998 66,666 - *
Brynde Berkowitz 99,999 99,999 33,333 - *
Thomas L. Cassidy IRA 99,999 99,999 33,333 - *
Raul Obregon & Cecilia 99,999 99,999 33,333 - *
Obregon, JTWROS
Roberto Gonzalez 79,999 79,999 33,333 - *
Omicron Investment 99,999 99,999 33,333 - *
Corporation
Myron M. Teitelbaum, M.D. 99,999 99,999 33,333 - *
Wayne Suker 99,999 99,999 33,333 - *
Jay Kestenbaum 99,999 99,999 33,333 - *
The 1992 Houston Partnership, 99,999 99,999 33,333 - *
L.P.
J. Philip Rosen 99,999 99,999 33,333 - *
Michael Cantor 99,999 99,999 33,333 - *
Roy Schaeffer & Marlena 99,999 99,999 33,333 - *
Schaeffer
</TABLE>
-6-
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Arnold R. Meyer, Trustee of 99,999 99,999 33,333 - *
Arnold R. Meyer Estate Trust
Amnon & Caren Barness, 99,999 99,999 33,333 - *
JTWROS
MDBC Capital Corp. 99,999 99,999 33,333 - *
Joel Wolff 99,999 99,999 33,333 - *
Steven Ostrovsky 99,999 99,999 33,333 - *
Dr. Martin Goldman 99,999 99,999 33,333 - *
Albert Milstein 99,999 99,999 33,333 - *
Roslyn Bloom 49,998 49,998 16,666 - *
Dr. Edward L. Steinberg 49,998 49,998 16,666 - *
J.R.K. Financial Corp. 49,998 49,998 16,666 - *
Bernard Cohen 49,998 49,998 16,666 - *
Jonathan E. Rothschild 49,998 49,998 16,666 - *
Roberto Segovia 49,998 49,998 16,666 - *
Chiam Kohanchi 49,998 49,998 16,666 - *
Michael & Nicole Kubin 49,998 49,998 16,666 - *
Alexander & Sharon Roitstein 49,998 49,998 16,666 - *
Peter S. Folino 49,998 49,998 16,666 - *
Herbert Hoffner 49,998 49,998 16,666 - *
Sandra Maria Sanchez 49,998 49,998 16,666 - *
Guadarrama
Laura C. Gold 49,998 49,998 16,666 - *
Burton P. Hoffner 49,998 49,998 16,666 - *
Jim Spencer 24,999 24,999 8,333 - *
Elke R. DeRamirez 19,998 19,998 6,666 - *
Armen Partners, L.P. 166,666 166,666 166,666 - *
Bruce Pomper 399,999 399,999 133,333 - *
Alexander Pomper 339,999 339,999 133,333 - *
Sidney Todres 199,998 199,998 66,666 - *
Mova Investments Limited 199,998 199,998 66,666 - *
Ted Koutsoubos 132,332 132,332 66,666 - *
F&T Planning Centers, Inc. 99,999 99,999 33,333 - *
Frank Alliots 33,332 33,332 16,666 - *
</TABLE>
-7-
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Geun-Eun Kim 49,998 49,998 16,666 - *
Joseph A. Umbach 99,999 99,999 33,333 - *
Cinco de Mayo, Ltd. 99,999 99,999 33,333 - *
Adams, Leonard J. 66,666 66,666 33,333 - *
Albanese, Sal and Lorraine 69,999 69,999 23,333 - *
Ashline Ltd. 999,999 999,999 333,333 - *
Belldegrun, Arie Dr. 199,998 199,998 66,666 - *
Batkin, Alan R. 99,999 99,999 33,333 - *
Bollag, Michael 199,998 199,998 66,666 - *
The Gifford Fund 499,998 499,998 166,666 - *
G.P.S. Fund Limited 99,999 99,999 33,333 - *
Carlos Plancarte G.N., Leonor 49,998 49,998 16,666 - *
P. de Marvan, JTWROS
Chopp, Martin 150,000 150,000 50,000 - *
Concordia Partners L.P. 499,998 499,998 166,666 - *
Coney Financial Services 114,998 114,998 61,666 - *
Demeulemeester Weitnauer 99,999 99,999 33,333 - *
Diversified Fund, Ltd. 399,999 399,999 133,333 - *
Scoggin Capital Mgnt L.P. 300,000 300,000 100,000 - *
Wang, Emily 49,998 49,998 16,666 - *
The Holding Company 99,999 99,999 33,333 - *
Leland Corporation 49,998 49,998 16,666 - *
Grossman, Peter 49,998 49,998 16,666 - *
Gruber, Stuart 99,999 99,999 33,333 - *
Halevah, Elyse & Erez 49,998 49,998 16,666 - *
Hecht, Thomas O. 49,998 49,998 16,666 - *
Hirschfield, Jack 24,999 24,999 8,333 - *
Jamison, John R. 30,000 30,000 10,000 - *
Kash, Peter and Donna, 99,999 99,999 33,333 - *
JTWROS
AMRAM KASS P.C. Defined 150,000 150,000 50,000 - *
Benefit Pension Plan
Special Equity 133,332 133,332 - - *
Koffman, Steven 49,998 49,998 16,666 - *
</TABLE>
-8-
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Kracoff, David and Reva 49,998 49,998 16,666 - *
Needham Capital Group, PLC 49,998 49,998 16,666 - *
Lash, Nathaniel & Millicent C. 49,998 49,998 16,666 - *
Lash Rev. Trust
Lash, Roger S. 49,998 49,998 16,666 - *
Lemer, Albert 49,998 49,998 16,666 - *
Loeb, John L., Jr. 49,998 49,998 16,666 - *
Markman, Melvin 99,999 99,999 33,333 - *
McNiff, John P. 99,999 99,999 33,333 - *
Nebenzahl, Mechie 13,333 13,333 13,333 - *
Neis, Robert 49,998 49,998 16,666 - *
Newman, Kevin P. 49,998 49,998 16,666 - *
Oberrotman, Alain 49,998 49,998 16,666 - *
Oliveira, Steven M. and 33,333 33,333 33,333 - *
Bernadette JTWROS
Ostrovsky, Paul D. and 49,998 49,998 16,666 - *
Rebecca L.
Plymouth Partners, L.P. 106,666 106,666 106,666 - *
The Zabludowicz Trust 199,998 199,998 66,666 - *
EDJ Limited 199,998 199,998 66,666 - *
Porter Partners, L.P. 277,199 277,199 133,333 - *
Propp & Company Inc. 49,998 49,998 16,666 - *
Kenton E. Wood 78,943 49,998 16,666 28,945 *
Rick Steiner Productions, Inc. 62,498 49,998 16,666 12,500 *
Robert E. Spivak Retirement 16,666 16,666 16,666 - *
Plan
Robinson, Linda Gosden 99,999 99,999 33,333 - *
M.D. Sabbah 600,000 600,000 200,000 - *
Schwendiman Global Sector 150,000 150,000 50,000 - *
Fund L.P
Silverman, Eugene 24,999 24,999 8,333 - *
Spindel, Neil and Laurie 99,999 99,999 33,333 - *
Stuart, Bruce 199,998 199,998 66,666 - *
The A.M. Group, L.L.C. 99,999 99,999 33,333 - *
</TABLE>
-9-
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Ventana Growth Capital Fund 28,098 28,098 9,366 - *
V, LP
Venture Enterprises, Inc. 49,998 49,998 16,666 - *
Whetten, Robert J. 199,998 199,998 66,666 - *
Williams, Esther 199,998 199,998 66,666 - *
Winans, Tim 49,998 49,998 16,666 - *
Zapco Holdings, Inc. Deferred 199,998 199,998 66,666 - *
Compensation Plan Trust
Zeff, Kal 399,999 399,999 133,333 - *
Hooker, Kingsley 45,000 45,000 15,000 - *
Amore Perpetuo, Inc. 33,332 33,332 - - *
Atrix-Ventana Investment & 71,919 71,919 23,973 - *
Co., LP
126736 Canada, Inc. 2,100,000 2,100,000 700,000 - *
Berg, Mark 249,999 249,999 83,333 - *
Churchpark Finance, Ltd. 199,998 199,998 66,666 - *
Cerrone, Gabriel M. 33,332 33,332 16,666 - *
Hanover Associates, LLC 150,000 150,000 50,000 - *
Michael Garnick 133,332 133,332 66,666 - *
Jerry B. Hook, Ph.D. (5) 411,498 199,998 66,666 211,500 2.028%
Dr. William McCulloch (5) 284,999 99,999 33,333 185,000 1.779%
Ronald H. Spair (5) 186,999 99,999 33,333 87,000 *
Annie Thomas (3) 18,745 18,745 - - *
Christopher Plunkett (3) 6,458 6,458 - - *
Thomas J. Yessman (3) 40,557 40,557 - - *
Kimberly Braswell (3) 7,753 7,753 - - *
Richard Feldman (3) 12,935 12,935 - - *
Brian Hagerman (3) 25,851 25,851 - - *
John Matthews (3) 25,851 25,851 - - *
Quentin Moses (3) 25,851 25,851 - - *
Michael Mindlin (3) 48,482 48,482 - - *
Americorp Financial Services, 123,616 123,616 - - *
Inc. (3)
Americorp Securities, Inc. (3) 25,851 25,851 - - *
</TABLE>
-10-
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
L.T. Lawrence (3) 57,150 57,150 - - *
Yale University (4) 23,209 23,209 - - *
**Lindsay A. Rosenwald (5) 2,271,003 1,605,352 - 665,651 5.673%
**Michael S. Weiss 228,906 228,906 - - *
**Wayne L. Rubin 221,406 221,406 - - *
**Joseph Edelman 42,412 42,412 - - *
**David Walner 23,727 23,727 - - *
**Lauren Youner 5,001 5,001 - - *
**Joseph Merback 27,000 27,000 - - *
**Blair Foster & Co. 6,750 6,750 - - *
**D.H. Blair & Co. 116,250 116,250 - - *
**Joseph Fabiani 1,500 1,500 - - *
**Propp & Company 999 999 - - *
**Deborah Soloman 9,999 9,999 - - *
**A. Joseph Rudick, Jr. 8,751 8,751 - - *
**Mark Abeshouse 48,249 48,249 - - *
**Bernard Gross 96,792 96,792 - - *
**Jeffrey Levine 52,500 52,500 - - *
**Stephen McDermott 66,000 66,000 - - *
**Tim McInerney 204,938 204,938 - - *
**Karl Ruggeberg 38,799 38,799 - - *
**Scott Katzmann 118,149 118,149 - - *
**Peter M. Kash 366,521 366,521 - - *
**Martin Kratchman 100,500 100,500 - - *
**Dian Griesel 2,499 2,499 - - *
------------- ---------- ----------- ---------
Total 36,213,590 34,423,396 11,022,559 1,790,194
- ----------------------
(1) Represents the aggregate number of shares of Common Stock (i) issuable
upon the conversion of the Series B' Preferred Stock, (ii)
issuable upon exercise of the Class C Warrants, (iii) issuable upon
exercise of any other rights to purchase shares of Common Stock
exercisable within 60 days of the date of this Prospectus Supplement,
(iv) issuable upon exercise of the UPO's, and (v) that are outstanding
and beneficially owned by the holder.
(2) Except where indicated, represents the aggregate number of shares of
(i) Common Stock issuable upon conversion of the Series B'
Preferred Stock beneficially owned by each Selling Securityholder, (ii)
Common Stock issuable upon exercise of the Class C Warrants and/or
(iii) Common Stock issuable upon exercise of the UPO's.
(3) Represents shares of Common Stock issuable upon exercise of the UPO's.
(4) Represents shares of Common Stock held by Yale University.
</TABLE>
<PAGE>
(5) The Prospectus, as amended by this Prospectus Supplement, covers only
those shares of Common Stock underlying the Series B' Preferred
Stock, Class C Warrants, and Placement Warrants beneficially owned by
the applicable Selling Securityholder.
(6) Assumes that all securities that are registered under the Registration
Statement are sold in the Offering. Also, percentage calculation is
based on approximately 10,115,434 shares of Common Stock issued and
outstanding on the date of this Prospectus Supplement, plus shares of
Common Stock issuable upon exercise of rights to purchase shares of
Common Stock exercisable with 60 days of the date of this Prospectus
Supplement, held by the Selling Securityholder in question.
* Less than 1%
** Represents the aggregate number of shares of (i) Common Stock issuable
upon the conversion of the Series B' Preferred Stock issuable upon
exercise of the Preferred Stock Warrants and (ii) Common Stock issuable
upon exercise of the Common Stock Warrants.
Each Selling Securityholder will be entitled to receive all of the
proceeds from the future sale of his, her or its respective shares of Common
Stock. Except for the costs of including such shares of Common Stock within the
Registration Statement, which costs are borne by the Company, the Selling
Securityholders will bear all expenses of any offering by them of their
Underlying Common, including the costs of their counsel and any sales
commissions incurred.
Except as noted below, none of the Selling Securityholders named in the
preceding table has had any position, office or other material relationship with
the Company or any of its predecessors or affiliates within the past three (3)
years. Paramount Capital, Inc. was the placement agent for the Series A
Convertible Preferred Stock and the Series B' Preferred Stock offerings. The
following Selling Securityholders are registered representatives and/or
employees of Paramount Capital, Inc.: Lindsay A. Rosenwald (sole shareholder of
Paramount Capital, Inc.), Michael S. Weiss, Wayne L. Rubin, Joseph Edelman,
David Walner, Lauren Youner, Joseph Fabiani, Deborah Soloman, A. Joseph Rudick,
Jr., Bernard Gross, Jeffrey Levine, Stephen McDermott, Tim McInerney, Karl
Ruggeberg, Scott Katzmann, Peter M. Kash, Martin Kratchman, Dian Griesel and
Mark Abeshouse. Jerry B. Hook, Ph.D. is the President and Chief Executive
Officer of the Company. Dr. William McCulloch is the former Senior Vice
President, Research and Development of the Company. Ronald H. Spair is Vice
President, Chief Financial Officer and Secretary of the Company. Americorp
Securities, Inc. and T.L. Lawrence were the underwriters of the Company's
initial public offering. Yale is the licensor of certain of the Company's
technology.
The Selling Securityholders may sell the shares of Common Stock at any
time on or after the date hereof.
THE SECURITIES OFFERED HEREBY INVOLVE A HIGH DEGREE OF RISK. SEE "RISK
FACTORS" BEGINNING ON PAGE 6 OF THE PROSPECTUS.
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THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION NOR HAS THE SECURITIES AND EXCHANGE
COMMISSION OR ANY STATE SECURITIES COMMISSION
PASSED UPON THE ACCURACY OR ADEQUACY OF
THIS PROSPECTUS. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.
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The date of this Prospectus Supplement is September 12, 1997.
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