UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
AMENDMENT NO. 4 TO
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
DERMA SCIENCES, INC.
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(Name of Issuer)
COMMON STOCK, $.01 PAR VALUE PER SHARE
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(Title of Class of Securities)
249827106
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(CUSIP Number)
Bruce F. Wesson
Senior Managing Member
Claudius, L.L.C.
610 Fifth Avenue, 5th Floor
New York, NY 10020
(212) 218-4990
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(Name, Address and Telephone Number of Person Authorized to Receive
Notices and Communications)
JULY 26, 2000
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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 with the schedule, including all exhibits. See Rule 13d-7(b) for other
parties to whom copies are to be sent.
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, as amended (the "Act") or otherwise subject to the liabilities of that
section of the Act but shall be subject to all provisions of the Act (however,
see the Notes).
Page 1 of 9 Pages
1
<PAGE>
Page 2 of 9 of the initial Schedule 13D pertaining to the Common
Shares of Derma Sciences, Inc., a Pennsylvania corporation, filed with the
Securities and Exchange Commission ("SEC") on February 6, 1998 for an event on
January 23, 1998 and subsequently amended on September 18, 1998 by Amendment No.
1 and on August 24, 1999 by Amendment No.2, and on January 10, 2000 by Amendment
No. 3, is hereby further amended to read in its entirety as follows:
SCHEDULE 13D
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CUSIP NO. 249827106 PAGE 2 OF 9 PAGES
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Galen Partners III, L.P.
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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 7 SOLE VOTING POWER
SHARES 2,703,159 (see Item 5(a))
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BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 0
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EACH 9 SOLE DISPOSITIVE POWER
REPORTING 2,703,159
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PERSON WITH 10 SHARED DISPOSITIVE POWER
0
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,703,159
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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)
61.8%
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14 TYPE OF REPORTING PERSON
PN
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2
<PAGE>
Page 3 of 9 of the Schedule 13D, as amended, is hereby further
amended to read in its entirety as follows:
SCHEDULE 13D
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CUSIP NO. 249827106 PAGE 3 OF 9 PAGES
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Galen Partners International III, L.P.
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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 7 SOLE VOTING POWER
SHARES 244,683 (see Item 5(a))
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BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 0
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EACH 9 SOLE DISPOSITIVE POWER
REPORTING 244,683
-----------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
0
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
244,683
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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)
5.60%
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14 TYPE OF REPORTING PERSON
PN
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3
<PAGE>
Page 4 of 9 of the Schedule 13D, as amended, is hereby further
amended to read in its entirety as follows:
SCHEDULE 13D
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CUSIP NO. 249827106 PAGE 4 OF 9 PAGES
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Galen Employee Fund III, L.P.
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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 7 SOLE VOTING POWER
SHARES 11,071 (see Item 5(a))
-----------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 0
-----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 11,071
-----------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
0
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11,071
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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)
0.25%
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14 TYPE OF REPORTING PERSON
PN
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4
<PAGE>
The first paragraph of Item 1 of the Schedule 13D is hereby
amended to read in its entirety as follows:
"This statement covers a total of 2,994,786 fully diluted shares
of Common Stock, $.01 par value per share (the "Common Stock"),
of Derma Sciences, Inc., a Pennsylvania corporation (the
"Issuer"). The Reporting Persons (as defined in Item 2 hereof) as
of the date hereof hold an aggregate of (i) 125,000 shares of
Series A Convertible Preferred Stock, $.01 par value per share,
of the Issuer (the "Series A Preferred Shares"), which as of the
date hereof are convertible into an aggregate of 125,000 shares
of Common Stock, (ii) 416,667 shares of Series B Convertible
Preferred Stock, $.01 par value per share, of the Issuer (the
"Series B Preferred Shares"), which as of the date hereof are
convertible into an aggregate of 416,667 shares of Common Stock,
(iii) 500,000 shares of Series C Convertible Preferred Stock,
$.01 par value per share, of the Issuer (the "Series C Preferred
Shares"), which as of the date hereof are convertible into an
aggregate of 500,000 shares of Common Stock, (iv) 412,500
Warrants which as of the date hereof may be exercised for an
aggregate of 485,294 shares of Common Stock, (v) Convertible
Bonds due August 15, 2000 (the "August 15 Convertible Bonds")
which are presently convertible into (x) 75,000 shares of Series
C Convertible Preferred Stock, which as of the date hereof would
be presently convertible into an aggregate of 43,635 shares of
Common Stock and (y) 75,000 warrants which as of the date hereof
would be presently exercisable for an aggregate of 43,635 shares
of Common Stock, (vi) Convertible Bonds due December 31, 2000
(the "December 31 Convertible Bonds") which are presently
convertible into (x) 444,444 shares of Series D Convertible
Preferred Stock, $0.01 par value per share (the "Series D
Preferred Shares"), which as of the date hereof, would be
presently exercisable for an aggregate of 444,444 shares of
Common Stock and (y) 444,444 warrants which as of the date
hereof, would be presently exercisable for an aggregate of
444,444 shares of Common Stock and (vii) 2,458,334 warrants
(together with the warrants in clauses (iv), (v) and (vi) above,
the "Warrants"), which as of the date hereof may be exercised for
an aggregate of 491,667 shares of Common Stock. The Common Stock,
Series A Preferred Shares, Series B Preferred Shares, August 15
Convertible Bonds, Series C Preferred Shares, December 31
Convertible Bonds, Series D Preferred Shares and Warrants are
referred to herein, collectively, as the "Securities".
5
<PAGE>
The second paragraph of Item 3 of the Initial Schedule 13D is
hereby amended to read in its entirety as follows:
"75,000 of the Series A Preferred Shares and the 75,000 of the
Warrants were acquired by the Reporting Persons through the
conversion, effected on or about January 23, 1998, of certain
Convertible Debentures due 1998 of the Issuer ("The Series A
Debentures"). The Reporting Persons acquired Series A Debentures
in an aggregate principal amount of $300,000 for $300,000 in
cash. The remaining 50,000 shares of the Series A Preferred
Shares were acquired through converting 50,000 shares of Common
Stock, which were previously acquired by the Reporting Persons at
a purchase price of $5.00 per share for an aggregate amount of
$250,000 in cash, into an equal number of shares of Series A
Preferred Stock. The Series B Preferred Shares and 2,083,334 of
the Warrants were acquired by the Reporting Persons through the
conversion, effected on or about September 9, 1998, of certain
Convertible Debentures due 1998 of the Issuer ("The Series B
Debentures"). The Reporting Persons acquired Series B Debentures
in an aggregate principal amount of $2,500,000 for $2,500,000 in
cash. The Reporting Persons acquired the August 15 Convertible
Bonds in an aggregate principal amount of $400,000 for $400,000
in cash. The Reporting Persons acquired the December 31
Convertible Bonds in an aggregate principal amount of $450,000
for $450,000 in cash. 500,000 of the Series C Preferred Shares
and 412,500 of the Warrants were acquired by the Reporting
Persons through the conversion, effected on or about July 26,
2000, of certain of the August 15 Convertible Bonds of the
Issuer. Each Reporting Person paid its pro rata share of the
acquisition price of the Securities based upon the number of
Common Shares, Series A Preferred Shares, Series B Preferred
Shares, Series C Preferred Shares, August 15 Convertible Bonds,
December 31 Convertible Bonds and Warrants it received."
Item 5, subpart (a) of the Initial Schedule 13D is hereby amended
to read in its entirety as follows:
6
<PAGE>
(a) Each Reporting Person owns or has the right to acquire the
number of securities shown opposite its name:
============== ================= ================ =============== ==============
(1) (2) (3) (4) (5)
-------------- ----------------- ---------------- --------------- --------------
Number of
Shares of Number of
Common Stock Shares of
into which Common Stock Percentage of
Series A, which may be Outstanding
Series B, Series acquired Shares of
C and Series D pursuant to Total of Common Stock
Reporting Preferred Stock exercise of Columns (2) (see Note
Person is Convertible Warrants and (3) below)
============== ================= ================ =============== ==============
Galen 1,397,522 1,305,637 2,703,159 61.88%
-------------- ----------------- ---------------- --------------- --------------
Galen Intl 126,500 118,183 244,683 5.60%
-------------- ----------------- ---------------- --------------- --------------
GEF 5,724 5,347 11,071 0.25%
-------------- ----------------- ---------------- --------------- --------------
Total 1,529,746 1,429,167 2,958,913 67.73%
============== ================= ================ =============== ==============
Note: The percentages shown in each row of column (5) were
calculated, for each respective row, by (i) adding the total in the bottom row
of column (4) to 1,409,272 (the number of shares of Common Stock outstanding as
of March 31, 2000, as set forth in the Issuer's Quarterly Report on Form 10-QSB
for the quarter then ended (the "Total Adjusted Outstanding Shares"), then (ii)
dividing the amount in column (4) by the Total Adjusted Outstanding Shares, and
then (iii) expressing such quotient in terms of a percentage.
7
<PAGE>
SIGNATURE
---------
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in the statement is true, complete and
correct.
Date: August 7, 2000 GALEN PARTNERS III, L.P.
By: Claudius, L.L.C.
By: /s/ Bruce F. Wesson
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Managing Member
GALEN PARTNERS
INTERNATIONAL III, L.P.
By: Claudius, L.L.C
By: /s/ Bruce F. Wesson
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Managing Member
GALEN EMPLOYEE FUND III, L.P.
By: Wesson Enterprises, Inc
By: /s/ Bruce F. Wesson
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President
[Signatures continued on next page.]
8
<PAGE>
CLAUDIUS, L.L.C.
By: /s/ Bruce F. Wesson
-------------------------------------
Managing Member
WESSON ENTERPRISES, INC.
By: /s/ Bruce F. Wesson
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President
WILLIAM R. GRANT
By: /s/ Bruce F. Wesson
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Bruce F. Wesson, Attorney-In-Fact
BRUCE F. WESSON
/s/ Bruce F. Wesson
----------------------------------------
Bruce F. Wesson, Attorney-In-Fact
L. JOHN WILKERSON
By: /s/ Bruce F. Wesson
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Bruce F. Wesson, Attorney-In-Fact
DAVID JAHNS
By: /s/ Bruce F. Wesson
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Bruce F. Wesson, Attorney-In-Fact
SRINI CONJEEVARAM
By: /s/ Bruce F. Wesson
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Bruce F. Wesson, Attorney-In-Fact
ZUBEEN SHROFF
By: /s/ Bruce F. Wesson
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Bruce F. Wesson, Attorney-In-Fact
9
