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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
AMENDMENT NO. 1 TO
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
Derma Sciences, Inc.
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(Name of Issuer)
Common Stock
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(Title of Class of Securities)
249827106
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(CUSIP Number)
Steven N. Machtinger
General Counsel and Secretary
Hambrecht & Quist LLC
One Bush Street, San Francisco, CA 94104
(415) 439-3000
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(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
August 18, 1999
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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(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 the
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).
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CUSIP No. 249827106
Page 2 of 9 Pages
1. NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
HAMBRECHT & QUIST GROUP
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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
WC
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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
DELAWARE
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NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH:
7. SOLE VOTING POWER
-0-
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8. SHARED VOTING POWER
993,788 (see Item 5)
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9. SOLE DISPOSITIVE POWER
-0-
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10. SHARED DISPOSITIVE POWER
993,788
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11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
993,788
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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)
42.8%
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14. TYPE OF REPORTING PERSON
CO
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CUSIP No. 249827106
Page 3 of 9 Pages
1. NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
HAMBRECHT & QUIST CALIFORNIA
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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
WC
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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
CALIFORNIA
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NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH:
7. SOLE VOTING POWER
-0-
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8. SHARED VOTING POWER
993,788 (see Item 5)
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9. SOLE DISPOSITIVE POWER
-0-
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10. SHARED DISPOSITIVE POWER
993,788
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11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
993,788
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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)
42.8%
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14. TYPE OF REPORTING PERSON
CO
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CUSIP No. 249827106
Page 4 of 9 Pages
ITEM 1. SECURITY AND ISSUER.
This statement covers a total of 993,788 fully diluted shares of Common
Stock, $.01 par value per share (the "Common Stock"), of Derma Sciences, Inc., a
Pennsylvania corporation (the "Company" or "Derma Sciences"). The Reporting
Persons as of the date hereof hold an aggregate of (i) 122,500 shares of Series
A Convertible Preferred Stock, $.01 par value per share of the Company (the
"Series A Preferred Shares"), which as of the date hereof are convertible into
122,500 shares of Common Stock, (ii) warrants for the purchase of 122,500 shares
of Common Stock at an exercise price of $4.50 per share ("Class A Warrants"),
(iii) 101,667 shares of Series B Convertible Preferred Stock, $.01 par value per
share of the Company (the "Series B Preferred Shares"), which as of the date
hereof are convertible into 101,667 shares of Common Stock, (iv) warrants for
the purchase of 101,667 shares of Common Stock at an exercise price of $6.75 per
share ("Class B Warrants") and (v) Convertible Bonds due August 15, 2000 (the
"Convertible Bonds") which are presently convertible into (x) 272,727 shares of
Series C Convertible Preferred Stock, $0.01 par value per share (the "Series C
Preferred Shares"), which as of the date hereof would be presently convertible
into an aggregate of 272,727 shares of Common Stock and (y) 272,727 warrants
which as of the date hereof would be presently exercisable for an aggregate of
272,727 shares of Common Stock at an exercise price of $1.10 per share ("Class C
Warrants"). The Series A, B and C Preferred Shares, the Class A, B and C
Warrants and Convertible Bonds are referred to herein, collectively, as the
"Securities."
The Company's principal executive offices are located at 214 Carnegie
Center, Suite 100, Princeton, NJ 08540.
ITEM 2. IDENTITY AND BACKGROUND.
(a), (b) & (c) The following information is given with respect to the
persons filing this statement:
HAMBRECHT & QUIST GROUP ("H&Q Group") is a publicly-held Delaware
corporation formed in 1996 with its principal office at One Bush Street,
San Francisco, California 94104. In addition to being engaged, through its
subsidiary, Hambrecht & Quist LLC, in the investment banking and
broker-dealer businesses, H&Q Group through associated entities, is engaged
in the venture capital and money management businesses. The directors and
executive officers of H&Q Group are the following:
<TABLE>
<CAPTION>
Principal Occupation
Name Position Address (Business)
- ------------------------- ---------------------------- ---------------------------- ---------------------------------
<S> <C> <C> <C>
Daniel H. Case III Director, Chairman and CEO One Bush Street Same as Position
San Francisco, CA 94104
- ------------------------- ---------------------------- ---------------------------- ---------------------------------
David A. Coulter Director c/o Hambrecht & Quist
One Bush Street
San Francisco, CA 94104
- ------------------------- ---------------------------- ---------------------------- ---------------------------------
Howard B. Hillman Director c/o Hambrecht & Quist President of Auto-trol
One Bush Street Technology Corp.
San Francisco, CA 94104
- ------------------------- ---------------------------- ---------------------------- ---------------------------------
William E. Mayer Director c/o Hambrecht & Quist Founder, Development Capital LLC
One Bush Street
San Francisco, CA 94104
- ------------------------- ---------------------------- ---------------------------- ---------------------------------
William J. Perry Director c/o Hambrecht & Quist Professor, Stanford University
One Bush Street
San Francisco, CA 94104
- ------------------------- ---------------------------- ---------------------------- ---------------------------------
William R. Timken Director c/o Hambrecht & Quist Retired
One Bush Street
San Francisco, CA 94104
- ------------------------- ---------------------------- ---------------------------- ---------------------------------
David M. McAuliffe Chief Operating Officer One Bush Street Same as position
San Francisco, CA 94104
- ------------------------- ---------------------------- ---------------------------- ---------------------------------
Patrick J. Allen Chief Financial Officer One Bush Street Same as position
San Francisco, CA 94104
- ------------------------- ---------------------------- ---------------------------- ---------------------------------
Steven N. Machtinger Secretary One Bush Street Same as position
San Francisco, CA 94104
- ------------------------- ---------------------------- ---------------------------- ---------------------------------
</TABLE>
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CUSIP No. 249827106
Page 5 of 9 Pages
HAMBRECHT & QUIST CALIFORNIA ("H&Q California"), wholly owned by H&Q
Group, is a California corporation formed in 1982 with its principal office at
One Bush Street, San Francisco, California 94104. In addition to being engaged,
through its subsidiary, Hambrecht & Quist LLC, in the investment banking and
broker-dealer businesses, H&Q California directly and through associated
entities, is engaged in the venture capital and money management businesses. The
directors and executive officers of H&Q California are the following:
<TABLE>
<CAPTION>
Principal Occupation
Name Position Address (Business)
- ------------------------- ---------------------------- ---------------------------- ---------------------------------
<S> <C> <C> <C>
Daniel H. Case III Director, Chairman and CEO One Bush Street Same as Position
San Francisco, CA 94104
- ------------------------- ---------------------------- ---------------------------- ---------------------------------
David A. Coulter Director c/o Hambrecht & Quist
One Bush Street
San Francisco, CA 94104
- ------------------------- ---------------------------- ---------------------------- ---------------------------------
Howard B. Hillman Director c/o Hambrecht & Quist President of Auto-trol
One Bush Street Technology Corp.
San Francisco, CA 94104
- ------------------------- ---------------------------- ---------------------------- ---------------------------------
William E. Mayer Director c/o Hambrecht & Quist Founder, Development Capital LLC
One Bush Street
San Francisco, CA 94104
- ------------------------- ---------------------------- ---------------------------- ---------------------------------
William J. Perry Director c/o Hambrecht & Quist Professor, Stanford University
One Bush Street
San Francisco, CA 94104
- ------------------------- ---------------------------- ---------------------------- ---------------------------------
William R. Timken Director c/o Hambrecht & Quist Retired
One Bush Street
San Francisco, CA 94104
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Patrick J. Allen Chief Financial Officer One Bush Street Same as position
San Francisco, CA 94104
- ------------------------- ---------------------------- ---------------------------- ---------------------------------
Steven N. Machtinger Secretary One Bush Street Same as position
San Francisco, CA 94104
- ------------------------- ---------------------------- ---------------------------- ---------------------------------
</TABLE>
(d) & (e) To the best knowledge of the reporting persons, during the
last five years none of the reporting persons or their officers, directors or
controlling persons has been convicted in a criminal proceeding (excluding
traffic violations or similar misdemeanors) or has been a party to a civil
proceeding of a judicial or administrative body of competent jurisdiction and as
a result of such proceeding 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) All individuals referred to above are United States citizens except
as indicated.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
The funds for the acquisition of the Securities were allocated from the
working capital of H&Q California.
The Series A Preferred Shares and the Class A Warrants were acquired by
H&Q California through the conversion, effected on or about February 9, 1998, of
certain Convertible Debentures due 1998 of the Company ("Debentures"). H&Q
California acquired Debentures in an aggregate principal amount of $490,000 for
$490,000 in cash.
The Series B Preferred Shares and the Class B Warrants were acquired by
H&Q California through the conversion, effected on or about September 9, 1998,
of certain Convertible Debentures due 1998 of the Company ("Debentures"). H&Q
California acquired Debentures in an aggregate principal amount of $610,000 for
$610,000 in cash.
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CUSIP No. 249827106
Page 6 of 9 Pages
The Convertible Bonds were acquired by H&Q California in the aggregate
principal amount of $300,000 for $300,000 in cash.
ITEM 4. PURPOSE OF TRANSACTION.
The owners listed in Item 5 purchased the Securities of the Company for
general investment purposes. The owners listed in Item 5 may acquire additional
shares of Common Stock of the Company, based upon their respective investment
decisions. It is not contemplated that any of the acquisitions reported
hereunder or any future acquisitions will result in any change in the present
management of the Company.
The owners listed in Item 5 have no present plans or proposals which
relate to or would result in:
(a) an extraordinary corporate transaction, such as a merger, reorganization or
liquidation, involving the Company or any of its subsidiaries;
(b) a sale or transfer of a material amount of assets of the Company or any of
its subsidiaries;
(c) any change in the present board of directors or management of the Company,
including any plans or proposals to change the number or term of directors
or fill any existing vacancies on the board;
(d) any material change in the present capitalization or dividend policy of the
Company;
(e) any other material change in the Company's business or corporate structure;
(f) changes in the Company's charter, by-laws or instruments corresponding
thereto or other actions which may impede the acquisition of control of the
Company by any person;
(g) causing a class of securities of the Company to be delisted from a national
securities exchange or cease to be quoted in an inter-dealer quotation
system of a registered national securities association;
(h) a class of equity securities of the Company becoming eligible for
termination of registration pursuant to Section 12(g)(4) of the Securities
Exchange Act; or
(i) any action similar to those enumerated above.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
H&Q California as of the date hereof holds (i) 122,500 Series A Preferred
Shares, (ii) 122,500 Class A Warrants, (iii) 101,667 Series B Preferred Shares,
(iv) 101,667 Class B Warrants and (v) Convertible Bonds which are presently
convertible into 272,727 Series C Preferred Shares and 272,727 Class C Warrants.
Based on the Company's Quarterly Report on Form 10-QSB for the quarter ended
June 30, 1999, there were 1,325,938 shares of Common Stock outstanding as of
June 30, 1999 (as adjusted after giving effect to the Company's 1-for-5 reverse
stock split effective August 2, 1999). Based on this information, H&Q California
beneficially owns approximately 42.8% of the Company's Common Stock.
The Securities beneficially owned by H&Q Group is a result of its
interest in H&Q California. H&Q Group is the sole parent of H&Q California.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER.
To the best knowledge and belief of the reporting persons, there are no
contracts, arrangements, understandings or relationships (legal or otherwise)
among the persons named in Item 2 or between such persons and any person with
respect to any securities of the Company.
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CUSIP No. 249827106
Page 7 of 9 Pages
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
A. Joint Filing Undertaking as required by Rule 13d-1(f).
SIGNATURES
After reasonable inquiry, and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
DATED: August 27, 1999
HAMBRECHT & QUIST GROUP
By: /s/ Steven N. Machtinger
-------------------------------
General Counsel and Secretary
HAMBRECHT & QUIST CALIFORNIA
By: /s/ Steven N. Machtinger
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General Counsel and Secretary
<PAGE>
CUSIP No. 249827106
Page 8 of 9 Pages
EXHIBIT INDEX
Exhibit A Joint Filing Undertaking Page 9
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CUSIP No. 249827106
Page 9 of 9 Pages
JOINT FILING UNDERTAKING
The undersigned, being duly authorized thereunto, hereby execute this
agreement as an exhibit to the Schedule 13D to evidence the agreement of the
below-named parties, in accordance with rules promulgated pursuant to the
Securities Exchange Act of 1934, to file this Schedule 13D jointly on behalf of
each of such parties.
DATED: August 27, 1999
HAMBRECHT & QUIST GROUP
By: /s/ Steven N. Machtinger
-------------------------------
General Counsel and Secretary
HAMBRECHT & QUIST CALIFORNIA
By: /s/ Steven N. Machtinger
-------------------------------
General Counsel and Secretary
