UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 4
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
( ) Check this box if no longer subject to Section 16.
Form 4 or Form 5 obligations may continue. See Instructions 1(b).
1. Name and Address of Reporting Person
The Aries Trust
c/o Paramount Capital Asset Management, Inc.
787 Seventh Avenue - 48th Floor
New York, New York 10019
2. Issuer Name and Ticker or Trading Symbol
Procept Incorporated
PRCT
3. IRS or Social Security Number of Reporting Person (Voluntary)
4. Statement for Month/Year
08/97
5. If Amendment, Date of Original (Month/Year)
6. Relationship of Reporting Person(s) to Issuer (Check all applicable)
( ) Director (X) 10% Owner ( ) Officer (give title below) ( ) Other
(specify below)
7. Individual or Joint/Group Filing (Check Applicable Line)
(X) Form filed by One Reporting Person
( ) Form filed by More than One Reporting Person
<TABLE>
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Table I -- Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned |
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1. Title of Security |2. |3. |4.Securities Acquired (A) |5.Amount of |6.Dir |7.Nature of Indirect |
| Transaction | or Disposed of (D) | Securities |ect | Beneficial Ownership |
| | | | Beneficially |(D)or | |
| | | | | A/| | Owned at |Indir | |
| Date |Code|V| Amount | D | Price | End of Month |ect(I)| |
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<S> <C> <C> <C><C> <C> <C> <C> <C> <C>
Common Stock, $.01 par valu|08/22/|J(1)| |3,882,667 (3) | D |$.46875 (2)| 0 | D | |
e per share |97 | | | | |(3) | | | |
| | | | | | | | | |
| | | | | | | | | |
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Table II -- Derivative Securitites Acquired, Disposed of, or Beneficially Owned |
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1.Title of Derivative |2.Con- |3. |4. |5.Number of De |6.Date Exer|7.Title and Amount |8.Price|9.Number |10.|11.Nature of|
Security |version |Transaction | rivative Secu |cisable and| of Underlying |of Deri|of Deriva |Dir|Indirect |
|or Exer | | | rities Acqui |Expiration | Securities |vative |tive |ect|Beneficial |
|cise | | | red(A) or Dis |Date(Month/| |Secu |Securities |(D)|Ownership |
|Price of| | | posed of(D) |Day/Year) | |rity |Benefi |or | |
|Deriva- | | | |Date |Expir| | |ficially |Ind| |
|tive | | | | A/|Exer-|ation| Title and Number | |Owned at |ire| |
|Secu- | | | | | D |cisa-|Date | of Shares | |End of |ct | |
|rity |Date |Code|V| Amount | |ble | | | |Month |(I)| |
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<S> <C> <C> <C> <C><C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
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Series A Convertible P|$.46875(|08/22|J(1)| |18,200 |A |08/22|N/A |Common Stock|3,882,6|$100.00|18,200 |D | |
referred Stock, par va|3 |/97 | | | | |/97 | | |67(3) | | | | |
lue $.01 per share | | | | | | | | | | | | | | |
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| | | | | | | | | | | | | | |
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</TABLE>
Explanation of Responses:
(1) Pursuant to a securities purchase agreement, dated as of June 30, 1997,
between the Reporting Person, the Aries Domestic Fund, L.P. and the Issuer (the
"Purchase Agreement"), since the approval by the stockholders of the Issuer of
an amendment to the Issuer's Certificate of Incorporation authorizing "blank
check" preferred stock, the Reporting Person elected to put (the "Put") its
3,882,667 shares of Common Stock purchased under the Purchase Agreement to the
Issuer for Series A Convertible Preferred Stock.
(2) Pursuant to the Put, in exchange for the shares of Common Stock reported on
Table I, the Reporting Person received the shares of Series A Convertible
Preferred Stock reported on Table II.
(3) Upon the earliest of (i) the approval by the holders of Common Stock of the
Issuer of the transactions contemplated by the Purchase Agreement (the
"Transactions") that are required by Rule 4460(i) of the National Association of
Securities Dealers' Marketplace Rules, (ii) any event which renders such
stockholder approval unnecessary or which renders such Rule inapplicable and
(iii) September 30, 1997, in light of the Put, the Reporting Person shall no
longer be entitled to a distribution of additional shares of Common Stock,
however, the conversion price of the Series A Convertible Preferred Stock shall
be adjusted to equal the lesser of $.29 and 50% of various market-based prices.
SIGNATURE OF REPORTING PERSON
/s/Lindsay A. Rosenwald, M.D.
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Lindsay A. Rosenwald, M.D., President
Paramount Capital Asset Management, Investment Manager
The Aries Trust
DATE
09/09/97
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Attachment A
Reporting Person: The Aries Trust
Issuer: Procept Incorporated (PRCT)
Statement For: August/1997
Paramount Capital Asset Management, Inc. ("Paramount"), the Investment
Manager to The Aries Trust (the "Trust"), is also the General Partner of the
Aries Domestic Fund (the "Partnership"), a Delaware limited partnership, which
also owns securities of the Issuer. Lindsay A. Rosenwald, M.D., is the sole
shareholder of Paramount. Paramount and Dr. Rosenwald disclaim beneficial
ownership of the securities held by the Partnership and the Trust, except to the
extent of their pecuniary interest therein, if any.
