SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
AMENDMENT NO. 3
TO
SCHEDULE 13D
Under the Securities Exchange Act of 1934
Phoenix Gold International, Inc.
(Name of Issuer)
Common Stock, Par Value $0.01 Per Share
(Title of Class of Securities)
719068 10 8
(CUSIP Number of Class of Securities)
Wynnefield Partners Small Cap Value, L.P.
One Penn Plaza - Suite 4720
New York, New York 10119
Attention: Mr. Nelson Obus
(212) 760-0134
(Name, Address and Telephone Number of Person Authorized)
to Receive Notices and Communications)
Copy to:
Jesse R. Meer, Esq.
Berlack, Israels & Liberman LLP
120 West 45th Street
New York, New York 10036
(212) 704-0100
November 2, 1998
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a Statement on Schedule 13D, and is
filing this schedule because of Rule 13d-1(b)(3) or (4), check the following
box: ( )
Check the following box if a fee is being paid with this Statement: ( )
<PAGE>
AMENDMENT NO. 3 TO SCHEDULE 13D
- -------------------------- ------------------
CUSIP No. 719068 10 8 Page 2 of 10 Pages
- -------------------------- ------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON: Wynnefield Partners Small Cap Value, L.P.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON: 13-3688497
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [X]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC (SEE ITEM 3)
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e) [ ]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES 196,484
BENEFICIALLY --------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH --
REPORTING --------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH 196,484
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
--
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
196,484 shares
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[ ]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.67%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- --------------------------------------------------------------------------------
(Page 2 of 10 Pages)
<PAGE>
AMENDMENT NO. 3 TO SCHEDULE 13D
- -------------------------- ------------------
CUSIP No. 719068 10 8 Page 3 of 10 Pages
- -------------------------- ------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON: Wynnefield Partners Small Cap Value, L.P. I
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON: 13-3688497
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [X]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC (SEE ITEM 3)
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e) [ ]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES 129,616
BENEFICIALLY --------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH --
REPORTING --------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH 129,616
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
--
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
129,616 shares
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[ ]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.74%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- --------------------------------------------------------------------------------
(Page 3 of 10 Pages)
<PAGE>
AMENDMENT NO. 3 TO SCHEDULE 13D
- -------------------------- ------------------
CUSIP No. 719068 10 8 Page 4 of 10 Pages
- -------------------------- ------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON: Wynnefield Small Cap Value Offshore Fund, Ltd.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON: Not Applicable
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [X]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC (SEE ITEM 3)
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e) [ ]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
CAYMAN ISLANDS
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES 84,550
BENEFICIALLY --------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH --
REPORTING --------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH 84,550
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
--
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
84,550 shares
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[ ]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.44%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
- --------------------------------------------------------------------------------
(Page 4 of 10 Pages)
<PAGE>
Item 1. Security and Issuer.
This amended Statement relates to shares of the Common Stock, $0.01 par value
per share (the "Shares"), of Phoenix Gold International, Inc., an Oregon
corporation (the "Issuer"). The principal executive offices of the Issuer are
located at 9300 Decatur Street, Portland, Oregon 97283.
Item 2. Identity and Background.
(a), (b), (c) and (f). This Statement is being filed by Wynnefield Partners
Small Cap Value, L.P. (the "Partnership"), Wynnefield Small Cap Value Offshore
Fund, Ltd. (the "Fund"), and Wynnefield Partners Small Cap Value, L.P. I (the
"Partnership-I"). Although the Partnership, the Fund and Partnership-I are each
separate and distinctive entities with different beneficial owners (whether
designated as limited partners or stockholders), for the convenience of
reporting their holdings, in this Statement, they are sometimes referred to
collectively as the "Wynnefield Group".
Wynnefield Capital Management, LLC, a New York limited liability company
("WCM"), is the general partner of the Partnership and the Partnership-I, which
are private investment companies organized as limited partnerships under the
laws of the State of Delaware. Nelson Obus, Joshua Landes and Robert Melnick are
the managing members of WCM and the principal executive officers of Wynnefield
Capital, Inc., the investment manager of the Fund, a private investment company
organized under the laws of the Cayman Islands. Mr. Obus, Mr. Landes and Mr.
Melnick are citizens of the United States of America.
The business address of Mr. Obus, Mr. Landes, and Mr. Melnick, WCM, and
each of the entities in the Wynnefield Group is One Penn Plaza, Suite 4720, New
York, New York 10119.
(Page 5 of 10 Pages)
<PAGE>
(d) and (e). During the last five years, neither Mr. Obus, Mr. Landes, Mr.
Melnick, WCM, nor any of the entities comprising the Wynnefield Group has been
(i) convicted in a criminal proceeding (excluding traffic violations or similar
misdemeanors) or (ii) 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.
Item 3. Source and Amount of Funds or Other Consideration.
In addition to the Shares owned by the Wynnefield Group, as of February 11,
1998, as reported in Amendment No. 2 to their original statement on Schedule
13D, the Wynnefield Group entities purchased the Shares shown in the following
table:
Name Number of Shares Consideration Paid
---- ---------------- ------------------
Partnership 32,000 $56,685.00
Partnership-I 31,000 46,867.25
Fund 18,100 29,297.00
Such Shares were paid for from the working capital of each of the
Partnership and the Fund, each of which maintains an investment fund, consisting
of capital contributions from their respective partners and investors and
capital appreciation derived therefrom for the principal purpose of buying and
selling securities (including financial and money market instruments) and
interests in domestic and foreign securities, including, without limitation,
convertible securities, stock index features contracts, options, puts and calls
on stock and warrants.
(Page 6 of 10 Pages)
<PAGE>
Item 4. Purposes of Transaction.
Each member of the Wynnefield Group acquired the Shares reported in Item 5
below for investment purposes only. They continue to monitor the turn-around
efforts of the Issuer which through the date of this Amendment they regard as
inconclusive. The Wynnefield Group has and will continue to express to the
Issuer's senior management and outside directors Wynnefield's concerns regarding
the Issuer's business model and its implementation. The Wynnefield Group
endorses management's recent appointment of two new independent directors to the
Board of the Issuer. The Partnerships and the Fund reserve the right to buy
additional Shares with the understanding that neither their purchases nor the
exercise of their rights as stockholders to communicate with the Chairman or the
outside directors are intended as "control" devices with respect to the Issuer.
Except as set forth above, neither the Partnerships nor the Fund has any
present plans or intentions which would result in or relate to any of the
transactions described in subparagraphs (a) through (j) of Item 4 of Schedule
13D.
Item 5. Interests in Securities of the Issuer.
(a) As of the close of business on the date hereof, the three entities
referred to as the Wynnefield Group beneficially owned a total of 410,650
Shares, the separate ownership of which is set forth in pages 2, 3 and 4 of this
Statement. Mr. Obus, Mr. Landes and Mr. Melnick, by virtue of their status as
managing members of WCM, the general partner of the Partnership and
Partnership-I, and as officers of the Fund's investment manager, may be deemed
to have indirect beneficial ownership of the Shares owned by the three entities
referred to as the Wynnefield Group. However, Mr. Obus, Mr. Landes and Mr.
Melnick, as stated below, disclaim any beneficial ownership of
(Page 7 of 10 Pages)
<PAGE>
such Shares. The Shares owned by the entities comprising the Wynnefield Group
represent approximately 11.85% of the outstanding Shares of the Issuer, based on
the 3,464,745 Shares reported by as outstanding on June 30, 1998.
Pursuant to Rule 13d-4 of the General Rules and Regulations under the
Securities and Exchange Act of 1934, as amended (the "Exchange Act"), Mr. Obus,
Mr. Landes and Mr. Melnick disclaim beneficial ownership of any Shares owned by
the three entities comprising the Wynnefield Group and disclaim membership in
the Wynnefield Group with respect to the Shares for purposes of Sections 13(d)
and 13(g) of the Exchange Act or for any other purpose under any other provision
of the Exchange Act or the rules and regulations promulgated thereunder.
(b) Mr. Obus, Mr. Landes and Mr. Melnick, by virtue of their status as the
managing members of WCM, the general partner of the Partnership and
Partnership-I, and as officers of the Fund's investment manager, have the power
to vote or to direct the vote and the power to dispose and to direct the
disposition of the 410,650 Shares owned by the entities comprising the
Wynnefield Group.
(c) Since February 11, 1998 (the last reported date of purchases as shown
in Amendment No. 2 to the original statement on Schedule 13D), the Partnerships
and the Fund made the following purchases:
Purchase
Identity of No. of Price Per
Date Purchaser Shares Share
---- --------- ------ -----
July 1, 1998 Partnership 5,000 $2.5625
July 27, 1998 Partnership 2,000 2.5625
August 12, 1998 Partnership 5,000 2.3125
October 28, 1998 Partnership 5,000 1.4350
October 29, 1998 Partnership 4,000 1.3725
November 2, 1998 Partnership 11,000 1.3200
(Page 8 of 10 Pages)
<PAGE>
Purchase
Identity of No. of Price Per
Date Purchaser Shares Share
---- --------- ------ -----
July 27, 1998 Partnership-I 2,000 $2.5750
September 28, 1998 Partnership-I 5,000 1.8175
October 12, 1998 Partnership-I 1,100 1.4052
October 22, 1998 Partnership-I 2,900 1.3186
October 28, 1998 Partnership-I 5,000 1.4400
October 29, 1998 Partnership-I 4,000 1.3788
November 2, 1998 Partnership-I 11,000 1.3223
July 27, 1998 Fund 1,000 $2.5625
August 26, 1998 Fund 5,000 2.0625
October 28, 1998 Fund 3,000 1.4350
October 29, 1998 Fund 2,000 1.3725
November 2, 1998 Fund 7,100 1.3200
(d) Each of the entities comprising the Wynnefield Group, as
owners of the Shares covered by this Statement, has the right to receive or the
power to direct the receipt of dividends from, or the proceeds from the sale of,
the Shares covered by this Statement.
(e) Not applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to
Securities of the Issuer.
Neither Mr. Obus, Mr. Landes, Mr. Melnick, WCM, nor any of the entities
comprising the Wynnefield Group has any contracts, arrangements, understandings
or relationships (legal or otherwise) with any person with respect to any
securities of the Issuer, including but not limited to any contracts,
arrangements, understandings or relationships concerning the transfer or voting
of such securities, finder's fees, joint ventures, loan or option arrangements,
puts or calls, guarantees
(Page 9 of 10 Pages)
<PAGE>
of profits, division of profits or losses, or the giving or withholding of
proxies.
Item 7. Material to be Filed as Exhibits.
Not applicable.
SIGNATURE
After reasonable inquiry and to the best of their knowledge and belief, the
undersigned certify that the information set forth in this Amendment is true,
complete and correct.
Dated: November 20, 1998
WYNNEFIELD PARTNERS SMALL CAP VALUE, L.P.
WYNNEFIELD PARTNER SMALL CAP VALUE, L.P. I
By Wynnefield Capital Management, LLC,
General Partner
By: /s/ Nelson Obus
---------------------------------
Nelson Obus, Managing Member
WYNNEFIELD SMALL CAP VALUE OFFSHORE
FUND, LTD.
By: Wynnefield Capital, Inc.
/s//Nelson Obus
---------------------------------
Nelson Obus, President
(Page 10 of 10 Pages)
