<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------
SCHEDULE 13D
AMENDMENT NO. 2
(Rule 13d-101)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
TO RULE 13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO
RULE 13d-2(a)
Diametrics Medical, Inc.
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(Name of Issuer)
COMMON STOCK, par value $0.01
- -------------------------------------------------------------------------------
(Title of Class of Securities)
252532 10 6
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CUSIP Number
BCC Acquisition II LLC
c/o Bay City Capital LLC
750 Battery Street
Suite 600
San Francisco, California 94111
(415) 676-3830
with a copy to:
Timothy G. Hoxie, Esq.
Heller Ehrman White & McAuliffe
333 Bush Street
San Francisco, California 94104
(415) 772-6052
- -------------------------------------------------------------------------------
(Name, address and telephone number
of person authorized to receive notices and communications)
June 28, 1999
--------------
(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 that is the subject of this Schedule 13D, and is filing this
statement because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following
box: / /
(Continued on following pages)
(Page 1 of 9 Pages)
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CUSIP NO. 252532 10 6 13D Page 2 of 9 Pages
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AMENDMENT NO. 2
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1) NAMES OF REPORTING PERSONS.
BCC Acquisition II LLC
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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, AF
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5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM
2(d) or 2(e) / /
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6) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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NUMBER OF SHARES 7) SOLE VOTING POWER
BENEFICIALLY OWNED -0-
BY EACH REPORTING ----------------------------------------------------
PERSON WITH 8) SHARED VOTING POWER
3,400,541 shares
----------------------------------------------------
9) SOLE DISPOSITIVE POWER
-0-
----------------------------------------------------
10) SHARED DISPOSITIVE POWER
3,400,541 shares
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11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,400,541 shares
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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)
13.3%
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14) TYPE OF REPORTING PERSON
OO
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CUSIP NO. 252532 10 6 13D Page 3 of 9 Pages
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AMENDMENT NO. 2
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1) NAMES OF REPORTING PERSONS
The Bay City Capital Fund I, 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, AF
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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
- -------------------------------------------------------------------------------
NUMBER OF SHARES 7) SOLE VOTING POWER
BENEFICIALLY OWNED -0-
BY EACH REPORTING --------------------------------------------------
PERSON WITH 8) SHARED VOTING POWER
3,400,541 shares
---------------------------------------------------
9) SOLE DISPOSITIVE POWER
-0-
---------------------------------------------------
10) SHARED DISPOSITIVE POWER
3,400,541 shares
- -------------------------------------------------------------------------------
11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,400,541 shares
- -------------------------------------------------------------------------------
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)
13.3%
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14) TYPE OF REPORTING PERSON
PN
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<PAGE>
CUSIP NO. 252532 10 6 13D Page 4 of 9 Pages
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AMENDMENT NO. 2
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1) NAMES OF REPORTING PERSONS
Bay City Capital Management LLC
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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
AF
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5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM
2(d) or 2(e) / /
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6) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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NUMBER OF SHARES 7) SOLE VOTING POWER
BENEFICIALLY OWNED -0-
BY EACH REPORTING -------------------------------------------------
PERSON WITH 8) SHARED VOTING POWER
3,400,541 shares
-------------------------------------------------
9) SOLE DISPOSITIVE POWER
-0-
-------------------------------------------------
10) SHARED DISPOSITIVE POWER
3,400,541 shares
- -------------------------------------------------------------------------------
11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,400,541 shares
- -------------------------------------------------------------------------------
12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
/ /
- -------------------------------------------------------------------------------
13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13.3%
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14) TYPE OF REPORTING PERSON
OO
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<PAGE>
CUSIP NO. 252532 10 6 13D Page 5 of 9 Pages
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AMENDMENT NO. 2
- -------------------------------------------------------------------------------
1) NAMES OF REPORTING PERSONS
Bay City Capital LLC
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2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) / /
(b) /X/
- -------------------------------------------------------------------------------
3) SEC USE ONLY
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4) SOURCE OF FUNDS
AF
- -------------------------------------------------------------------------------
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
- -------------------------------------------------------------------------------
NUMBER OF SHARES 7) SOLE VOTING POWER
BENEFICIALLY OWNED -0-
BY EACH REPORTING ------------------------------------------------
PERSON WITH 8) SHARED VOTING POWER
3,400,541 shares
------------------------------------------------
9) SOLE DISPOSITIVE POWER
-0-
------------------------------------------------
10) SHARED DISPOSITIVE POWER
3,400,541 shares
- -------------------------------------------------------------------------------
11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,400,541 shares
- -------------------------------------------------------------------------------
12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
/ /
- -------------------------------------------------------------------------------
13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13.3%
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14) TYPE OF REPORTING PERSON
OO
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CUSIP NO. 252532 10 6 13D Page 6 of 9 Pages
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AMENDMENT NO. 2
INTRODUCTION
BCC Acquisition II LLC, a Delaware limited liability company ("BCC
Acquisition"), hereby files this Amendment No. 2 (the "Amendment") to the
Statement on Schedule 13D, as amended by Amendment No. 1 (as amended, the
"Statement") on behalf of the Reporting Persons (as defined under Item 2 of the
Statement) identified in the Statement pursuant to the Agreement with respect to
Schedule 13D attached to the Statement as Exhibit 7(1). Defined terms not
otherwise defined herein have the meanings ascribed thereto in the Statement.
Pursuant to a Common Stock Purchase Agreement (the "H-P Stock Purchase
Agreement"), dated June 6, 1999, between Diametrics Medical, Inc., a Minnesota
corporation (the "Issuer"), and Hewlett-Packard Company ("H-P"), the Issuer
agreed to sell, and H-P agreed to purchase, 1,357,143 shares of the Issuer's
common stock and currently exercisable warrants to purchase 452,381 shares of
the Issuer's common stock (collectively, the "Shares"). In connection with H-P's
purchase of the Shares under the H-P Stock Purchase Agreement, which closing
occurred on June 28, 1999, BCC Acquisition and Amarfour LLC (which is not a
Reporting Person, but the members of which are other trusts primarily for the
benefit of the lineal descendants of Nicholas J. Pritzker, deceased, as
described in Item 5 of the Statement) agreed to execute certain side letter
agreements, to be effective upon closing of the H-P Stock Purchase Agreement, in
favor of H-P.
Item 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH
RESPECT TO SECURITIES OF THE ISSUER.
Item 6 is amended by adding the following at the end thereof:
(f) SIDE LETTER AGREEMENT WITH HEWLETT-PACKARD COMPANY.
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CUSIP NO. 252532 10 6 13D Page 7 of 9 Pages
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AMENDMENT NO. 2
In connection with the Common Stock Purchase Agreement ("H-P Stock Purchase
Agreement") dated June 6, 1999, between the Issuer and Hewlett-Packard Company
("H-P"), BCC Acquisition entered into a side letter agreement (the "Side Letter
Agreement") with H-P, which Side Letter Agreement became effective on the
closing date of the H-P Stock Purchase Agreement, which occurred on June 28,
1999. The Side Letter Agreement provides that BCC Acquisition shall enter into a
separate agreement with H-P granting H-P limited rights of first refusal on
certain block transfers of Issuer's stock that BCC Acquisition may make in the
future. As BCC Acquisition believed H-P's purchase of the Issuer's common stock
and warrants to be in BCC Acquisition's best interests, BCC Acquisition entered
into the Side Letter Agreement with H-P on June 6, 1999. The Side Letter
Agreement is attached hereto as Exhibit 7(10).
Item 7. MATERIAL TO BE FILED AS EXHIBITS.
Exhibit 7(10). Side Letter Agreement by and between BCC Acquisition II LLC
and Hewlett-Packard Company
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CUSIP NO. 252532 10 6 13D Page 9 of 9 Pages
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AMENDMENT NO. 2
SIGNATURE
After reasonable inquiry and to the best of the undersigned's knowledge and
belief, the undersigned certifies that the information set forth in this
statement is true, complete and correct.
Dated: July 15, 1999
BCC Acquisition II LLC
By: Its Manager
The Bay City Capital Fund I, L.P.
By: Its General Partner
Bay City Capital Management
LLC
By: /s/ Fred Craves
----------------------
Its: Manager
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CUSIP NO. 252532 10 6 13D Page 8 of 9 Pages
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AMENDMENT NO. 2
List of Exhibits
----------------
Exhibit No Description Page
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7(10) Side Letter Agreement by and between BCC Acquisition II LLC and
Hewlett-Packard Company
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HEWLETT-PACKARD COMPANY
June 6, 1999
BCC Acquisition II LLC
c/o Bay City Capital
750 Battery Street, Suite 600
San Francisco, California 94111
Attention: Fred Craves
Re: Diametrics Medical, Inc.
Dear Mr. Craves:
Reference is made to the Common Stock Purchase Agreement between Diametrics
Medical, Inc. and Hewlett-Packard Company to be entered into on the date hereof
substantially in the form attached hereto as Exhibit A (the "Purchase
Agreement"). All capitalized terms used but not otherwise defined in this letter
shall have the meanings ascribed to them in the Purchase Agreement.
Based on our review of Company's recent SEC filings, we understand that you
have a significant ownership position in Company. The Purchaser is unwilling
to enter into the Purchase Agreement absent your assurance regarding certain
matters addressed in Section 9.9 of the Purchase Agreement. In order to
further induce the Purchaser to enter into the Purchase Agreement and to
consummate the transactions contemplated thereby, the Purchaser hereby
requests that you agree as follows:
1. Upon the written request of the Purchaser, following the closing
contemplated under the Purchase Agreement, you will promptly enter into an
agreement with the Purchaser in accordance with the terms of Section 9.9 of the
Purchase Agreement. Such agreements will be suspended at such times, if any,
during the Two-Year Period that the Purchaser's owned voting power in Company
falls below (a) 12% due to transfers of Company equity by the Purchaser and/or
(b) 10% for any other reason. Such agreement shall only be effective during the
Two-Year Period.
<PAGE>
BCC Acquisition II LLC
Page 2
June 6, 1999
2. You believe that, as a shareholder of Company, you will derive
substantial indirect benefit from the Purchaser's execution, delivery and
performance of the Purchase Agreement and the consummation of the transactions
contemplated thereby.
Please execute a copy of this letter in the space indicated to confirm your
agreement with the matters set forth in clauses (1) and (2) above, and forward
the signed letter by facsimile to the attention of Ross Katchman at
650/857-4837, with hard copy to follow by U.S. Mail.
Thank you for your cooperation in this matter.
Sincerely,
HEWLETT-PACKARD COMPANY
By: /s/ ROSS N. KATCHMAN
Name: Ross N. Katchman
Title: Corporate Counsel
Agreed to and Accepted as for the date first above written:
BCC Acquisition II LLC
By: /s/ FRED B CRAVES
Name: Fred B. Craves
Title: Authorized Signatory
