SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 3)*
Procept, Inc.
(Name of Issuer)
Common Stock, par value $.01 per share
(Title of Class of Securities)
742 683 10 5
(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:
Michael S. Weiss, Esq. Monica C. Lord, Esq.
Paramount Capital Asset Kramer, Levin, Naftalis & Frankel
Management, Inc. 919 Third Avenue
787 Seventh Avenue New York, NY 10022
New York, NY 10019 (212) 715-9100
(212) 554-4372
(Name, Address and Telephone Number of Person Authorized to Receive Notices and
Communications)
August 10, 1998
(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 10 pages
<PAGE>
CUSIP No. 742 683 10 5 13 D Page 2 of 10 Pages
- --------------------------------------------------------------------------------
1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Paramount Capital Asset Management, Inc.
- --------------------------------------------------------------------------------
2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3) SEC USE ONLY
- --------------------------------------------------------------------------------
4) SOURCE OF FUNDS*
00 (see Item 3 below)
- --------------------------------------------------------------------------------
5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEM 2(d) OR 2(e)
[_]
- --------------------------------------------------------------------------------
6) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
7) SOLE VOTING POWER
None
NUMBER -------------------------------------------------
OF 8) SHARED VOTING POWER
SHARES 2,789,206**
BENEFICIALLY -------------------------------------------------
OWNED BY 9) SOLE DISPOSITIVE POWER
EACH None
REPORTING -------------------------------------------------
PERSON 10) SHARED DISPOSITIVE POWER
WITH 2,789,206**
- --------------------------------------------------------------------------------
11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
2,789,206**
- --------------------------------------------------------------------------------
12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES [ ]
- --------------------------------------------------------------------------------
13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
55.7%
- --------------------------------------------------------------------------------
14) TYPE OF REPORTING PERSON
CO
- --------------------------------------------------------------------------------
** Consists of (i) 1,341,680 shares of Common Stock which are presently votable,
and (ii) 1,447,526 shares of Common Stock issuable upon exercise of warrants,
which, accordingly, are not presently votable.
<PAGE>
CUSIP No. 742 683 10 5 13 D Page 3 of 10 Pages
- --------------------------------------------------------------------------------
1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Aries Domestic Fund, L.P.
- --------------------------------------------------------------------------------
2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3) SEC USE ONLY
- --------------------------------------------------------------------------------
4) SOURCE OF FUNDS*
00 (see Item 3 below)
- --------------------------------------------------------------------------------
5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEM 2(d) OR 2(e)
[_]
- --------------------------------------------------------------------------------
6) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
7) SOLE VOTING POWER
None
NUMBER -------------------------------------------------
OF 8) SHARED VOTING POWER
SHARES 953,930**
BENEFICIALLY -------------------------------------------------
OWNED BY 9) SOLE DISPOSITIVE POWER
EACH None
REPORTING -------------------------------------------------
PERSON 10) SHARED DISPOSITIVE POWER
WITH 953,930**
- --------------------------------------------------------------------------------
11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
953,930**
- --------------------------------------------------------------------------------
12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES [ ]
- --------------------------------------------------------------------------------
13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
19.1%
- --------------------------------------------------------------------------------
14) TYPE OF REPORTING PERSON
PN
- --------------------------------------------------------------------------------
** Consists of (i) 459,588 shares of Common Stock which are presently votable,
and (ii) 494,342 shares of Common Stock issuable upon exercise of warrants,
which, accordingly, are not presently votable.
<PAGE>
CUSIP No. 742 683 10 5 13 D Page 4 of 10 Pages
- --------------------------------------------------------------------------------
1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
The Aries Trust
- --------------------------------------------------------------------------------
2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3) SEC USE ONLY
- --------------------------------------------------------------------------------
4) SOURCE OF FUNDS*
00 (see Item 3 below)
- --------------------------------------------------------------------------------
5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEM 2(d) OR 2(e)
[_]
- --------------------------------------------------------------------------------
6) CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman Islands
- --------------------------------------------------------------------------------
7) SOLE VOTING POWER
None
NUMBER -------------------------------------------------
OF 8) SHARED VOTING POWER
SHARES 1,835,276**
BENEFICIALLY -------------------------------------------------
OWNED BY 9) SOLE DISPOSITIVE POWER
EACH None
REPORTING -------------------------------------------------
PERSON 10) SHARED DISPOSITIVE POWER
WITH 1,835,276**
- --------------------------------------------------------------------------------
11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
1,835,276**
- --------------------------------------------------------------------------------
12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES [ ]
- --------------------------------------------------------------------------------
13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
36.7%
- --------------------------------------------------------------------------------
14) TYPE OF REPORTING PERSON
OO (see Item 2)
- --------------------------------------------------------------------------------
** Consists of (i) 882,920 shares of Common Stock which are presently votable,
and (ii) 953,184 shares of Common Stock issuable upon exercise of warrants,
which, accordingly, are not presently votable.
<PAGE>
CUSIP No. 742 683 10 5 13 D Page 5 of 10 Pages
- --------------------------------------------------------------------------------
1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Lindsay A. Rosenwald, M.D.
- --------------------------------------------------------------------------------
2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3) SEC USE ONLY
- --------------------------------------------------------------------------------
4) SOURCE OF FUNDS*
00 (see Item 3 below)
- --------------------------------------------------------------------------------
5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEM 2(d) OR 2(e)
[_]
- --------------------------------------------------------------------------------
6) CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- --------------------------------------------------------------------------------
7) SOLE VOTING POWER
557,689
NUMBER -------------------------------------------------
OF 8) SHARED VOTING POWER
SHARES 2,789,206**
BENEFICIALLY -------------------------------------------------
OWNED BY 9) SOLE DISPOSITIVE POWER
EACH 557,689
REPORTING -------------------------------------------------
PERSON 10) SHARED DISPOSITIVE POWER
WITH 2,789,206**
- --------------------------------------------------------------------------------
11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
3,346,895**
- --------------------------------------------------------------------------------
12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES [ ]
- --------------------------------------------------------------------------------
13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
66.8%
- --------------------------------------------------------------------------------
14) TYPE OF REPORTING PERSON
IN
- --------------------------------------------------------------------------------
** Consists of (i) 1,341,680 shares of Common Stock which are presently votable,
and (ii) 2,005,215 shares of Common Stock issuable upon exercise of warrants,
which, accordingly, are not presently votable.
<PAGE>
CUSIP No. 742 683 10 5 13 D Page 6 of 10 Pages
- --------------------------------------------------------------------------------
1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Mr. Michael S. Weiss
- --------------------------------------------------------------------------------
2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3) SEC USE ONLY
- --------------------------------------------------------------------------------
4) SOURCE OF FUNDS*
PF (see Item 3)
- --------------------------------------------------------------------------------
5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEM 2(d) OR 2(e)
[_]
- --------------------------------------------------------------------------------
6) CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- --------------------------------------------------------------------------------
7) SOLE VOTING POWER
26,796
NUMBER -------------------------------------------------
OF 8) SHARED VOTING POWER
SHARES 128,350**
BENEFICIALLY -------------------------------------------------
OWNED BY 9) SOLE DISPOSITIVE POWER
EACH 26,796
REPORTING -------------------------------------------------
PERSON 10) SHARED DISPOSITIVE POWER
WITH 128,350**
- --------------------------------------------------------------------------------
11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
155,146**
- --------------------------------------------------------------------------------
12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES [ ]
- --------------------------------------------------------------------------------
13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
5.0%
- --------------------------------------------------------------------------------
14) TYPE OF REPORTING PERSON
IN
- --------------------------------------------------------------------------------
** Includes 64,175 shares of Common Stock and Class C Warrants to puchase 64,175
shares of Common Stock, in each case, issuable upon exercise of Advisory Options
held by Hawkins Group, LLC, a limited liability company of which Mr. Weiss is
the managing member.
<PAGE>
SCHEDULE 13D
This Amendment No. 3 (the "Amendment") amends and supplements the
following Items of the Reporting Persons' Statement on Schedule 13D, dated July
10, 1997, as amended (the "Schedule"). All amounts reported in this Amendment
have been adjusted and all amounts previously reported should be adjusted, as
necessary, to reflect the one-for-ten reverse split of the Common Stock of the
Issuer which became effective June 1, 1998.
ITEM 2. IDENTITY AND BACKGROUND.
The information contained in Item 2 to the Schedule is hereby
amended and supplemented to read in its entirety as follows:
(a) This statement is filed on behalf of Paramount Capital Asset
Management, Inc. ("Paramount Capital"), Aries Domestic Fund,
L.P. ("Aries Domestic"), The Aries Trust ("Aries Trust"),
Dr. Lindsay A. Rosenwald (together with Paramount Capital,
Aries Domestic and Aries Trust, the "Aries Reporting
Persons") and Mr. Michael S. Weiss (together with the Aries
Reporting Persons, the "Filing Persons"). See attached
Exhibit S which is a copy of their agreement in writing to
file this statement jointly on behalf of each of them. Mr.
Weiss and the Aries Reporting Persons have made, and will
continue to make, their own investment decisions. The
investment decisions of Mr. Weiss may or may not coincide
with the decisions made by the Aries Reporting Persons. Each
Filing Person expressly disclaims Mr. Weiss' membership in a
"group" with the Aries Reporting Persons within the meaning
of Rule 13d-5(b)(1) of the Securities Exchange Act of 1934,
as amended.
(b) The business address of Paramount Capital, Aries Domestic,
Dr. Rosenwald and Mr. Weiss is 787 Seventh Avenue, 48th
Floor, New York, New York, 10019. The business address for
Aries Trust is c/o MeesPierson (Cayman) Limited, P.O. Box
2003, British American Centre, Phase 3, Dr. Roy's Drive,
George Town, Grand Cayman.
(c) Dr. Rosenwald is an investment banker, venture capitalist,
fund manager and sole shareholder of Paramount Capital,/1/ a
Subchapter S corporation incorporated in the State of
Delaware. Paramount Capital is the General Partner of Aries
Domestic,/2/ a limited partnership incorporated in Delaware.
Paramount Capital is the Investment Manager to The Aries
Trust,/3/ a Cayman Islands Trust. Mr. Weiss is a Senior
Managing Director of Paramount Capital, Inc. and also is a
member of the Issuer's Board of Directors.
- --------
/1/ Please see Exhibit B indicating the executive officers and directors of
Paramount Capital and providing information called for by Items 2-6 of this
statement as to said officers and directors. Exhibit B is herein
incorporated by reference.
/2/ Please see Exhibit C indicating the general partner of Aries Domestic and
the general partner's executive officers and directors and providing
information called for by Items 2-6 of this statement as to said general
partners, officers and directors. Exhibit C is herein incorporated by
reference.
/3/ Please see Exhibit D indicating the investment manager of the Aries Trust
and the investment manager's executive officers and directors and providing
information called for by Items 2-6 of this statement as to said investment
manager and officers and directors. Exhibit D is herein incorporated by
reference.
Page 7 of 10 Pages
<PAGE>
(d) Dr. Rosenwald, Mr. Weiss, Paramount Capital, Aries Domestic
and Aries Trust and their respective officers, directors,
general partners, investment managers, and trustees have
not, during the five years prior to the date hereof, been
convicted in a criminal proceeding (excluding traffic
violations or similar misdemeanors).
(e) Dr. Rosenwald, Mr. Weiss, Paramount Capital, Aries Domestic
and Aries Trust and their respective officers, directors,
general partners, investment managers, and trustees have not
been, during the five years prior to the date hereof,
parties to a civil proceeding of a judicial or
administrative body of competent jurisdiction, as a result
of which such person 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) Dr. Rosenwald and Mr. Weiss are citizens of the United
States.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
The information contained in Item 3 to the Schedule is hereby amended
and supplemented by adding the following:
Pursuant to the Placement Agency Agreement and the Financial Advisory
Agreement (see Item 6), Paramount Capital, Inc. designated recipients (the
"Paramount Option Designees") of the Placement Options and Advisory Options (as
defined below). Aries Trust, Aries Domestic, Dr. Rosenwald and Mr. Weiss were
among the Paramount Option Designees and each received such Placement Options
and/or Advisory Options in connection with the Private Placement for which
Paramount Capital, Inc. acted as placement agent (see Item 6). Aries Trust was
designated the recipient of Placement Options to purchase units consisting of an
aggregate of (i) 33,500 shares of Common Stock and Class C Warrants to purchase
33,500 shares of Common Stock. Aries Domestic was designated the recipient of
Placement Options to purchase units consisting of an aggregate of (i) 16,500
shares of Common Stock and (ii) Class C Warrants to purchase 16,500 shares of
Common Stock. Dr. Rosenwald was designated the recipient of Placement Options to
purchase units consisting of an aggregate of (i) approximately 59,337 shares of
Common Stock and (ii) Class C Warrants to purchase approximately 59,337 shares
of Common Stock and was designated the recipient of Advisory Options to purchase
units consisting of an aggregate of (i) 219,507 shares of Common Stock and (ii)
Class C Warrants to purchase 219,507 shares of Common Stock. Mr. Weiss was
designated the recipient of Placement Options to purchase units consisting of an
aggregate of (i) approximately 13,398 shares of Common Stock and (ii) Class C
Warrants to purchase approximately 13,398 shares of Common Stock and a limited
liability company of which Mr. Weiss is the managing member was designated the
recipient of Advisory Options to purchase an aggregate of (i) approximately
64,175 shares of Common Stock and (ii) Class C Warrants to purchase
approximately 64,175 shares of Common Stock. The Placement Options and Advisory
Options become exercisable on October 9, 1998
page 8 of 10 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 1, 1998: Dr. Rosenwald, as the sole
shareholder of Paramount Capital and as the holder of
Placement Options and Advisory Options, may be deemed
beneficially to own approximately 3,346,895 shares or 66.8%
of the Issuer's Common Stock; Paramount Capital, through the
acquisitions of securities by Aries Trust and Aries
Domestic, may be deemed beneficially to own 2,789,206 shares
or 55.7% of the Issuer's Common Stock; and Aries Domestic,
Aries Trust and Mr. Weiss may be deemed beneficially to own
the following numbers of shares of Common Stock:
Aries Domestic 953,930
Aries Trust 1,835,276
Michael S. Weiss 155,146
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 respective Purchased Common Stock actually held by such
Filing Person.
(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. Dr. Rosenwald has the sole power to vote or
to direct the vote and to dispose or to direct the
disposition of the shares underlying the Placement Options
and Advisory Options held by him. Mr. Weiss has the sole
power to vote or to direct the vote and to dispose or to
direct the disposition of the shares underlying the
Placement Options held by him, and Mr. Weiss has shared
power to vote or to direct the vote and to dispose or to
direct the disposition of the Advisory Options held by the
limited liability company of which he is the managing
member.
(c) The Filing 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 Placement Options and the Advisory
Options becoming exerciseable within 60 days can be
considered a transaction.
(d) & (e) Not applicable.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
The information contained in Item 7 to the Schedule is hereby
amended by adding the following Exhibit:
Exhibit S: Agreement of Joint Filing of Schedule 13D.
page 9 of 10 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 9, 1998
New York, NY By: /s/ Lindsay A. Rosenwald, M.D.
-----------------------------------------
Lindsay A. Rosenwald, M.D.
President
ARIES DOMESTIC FUND, L.P.
By: Paramount Capital Asset Management, Inc.
General Partner
Dated: September 9, 1998
New York, NY By: /s/ Lindsay A. Rosenwald, M.D.
-----------------------------------------
Lindsay A. Rosenwald, M.D.
President
THE ARIES TRUST
By: Paramount Capital Asset Management, Inc.
Investment Manager
Dated: September 9, 1998
New York, NY By: /s/ Lindsay A. Rosenwald, M.D.
-----------------------------------------
Lindsay A. Rosenwald, M.D.
President
Dated: September 9, 1998
New York, NY By: /s/ Lindsay A. Rosenwald, M.D.
-----------------------------------------
Lindsay A. Rosenwald, M.D.
Dated: September 9, 1998
New York, NY By: /s/ Michael S. Weiss
-----------------------------------------
Michael S. Weiss
page 10 of 10 pages
<PAGE>
EXHIBIT S
AGREEMENT
JOINT FILING OF SCHEDULE 13D
The undersigned hereby agree jointly to prepare and to file
with regulatory authorities a Schedule 13D and any future amendments thereto
reporting each of the undersigned's ownership of securities of Procept Inc., and
hereby affirm that such Schedule 13D is being filed on behalf of each of the
undersigned.
PARAMOUNT CAPITAL ASSET MANAGEMENT, INC.
Dated: September 9, 1998
New York, NY By: /s/ Lindsay A. Rosenwald, M.D.
-----------------------------------------
Lindsay A. Rosenwald, M.D.
President
ARIES DOMESTIC FUND, L.P.
By: Paramount Capital Asset Management, Inc.
General Partner
Dated: September 9, 1998
New York, NY By: /s/ Lindsay A. Rosenwald, M.D.
-----------------------------------------
Lindsay A. Rosenwald, M.D.
President
THE ARIES TRUST
By: Paramount Capital Asset Management, Inc.
Investment Manager
Dated: September 9, 1998
New York, NY By: /s/ Lindsay A. Rosenwald, M.D.
-----------------------------------------
Lindsay A. Rosenwald, M.D.
President
Dated: September 9, 1998
New York, NY By: /s/ Lindsay A. Rosenwald, M.D.
-----------------------------------------
Lindsay A. Rosenwald, M.D.
Dated: September 9, 1998
New York, NY By: /s/ Michael S. Weiss
-----------------------------------------
Michael S. Weiss
