SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D/A
Under the Securities Exchange Act of 1934
(Amendment No. 2)*
Grow Biz International, Inc.
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(Name of Issuer)
Common Stock, no par value
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(Title of Class of Securities)
908315
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(CUSIP Number)
John L. Morgan
Grow Biz International, Inc.
4200 Dahlberg Drive
Minneapolis, Minnesota 55422
(763) 520-8500
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(Name, Address and Telephone Number of Person Authorized
to Receive Notices and Communications)
October 12, 2000
----------------------------------------------------
(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
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 8 Pages
<PAGE>
SCHEDULE 13D
<TABLE>
<CAPTION>
CUSIP No. 908315 Page 2 of 8 Pages
<S> <C>
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1 NAMES OF REPORTING PERSONS/I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
John L. Morgan
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS) (a) [X]
(b) [ ]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
PF
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5 CHECK 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 Mr. Morgan is a citizen of
the United States
------------------------- --------- ------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH 433,764
--------- ------------------------------------------------------------------------------------------
8 SHARED VOTING POWER
424,300 (includes 200,000 shares purchasable upon exercise of warrants)
--------- ------------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
433,764
--------- ------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
424,300 (includes 200,000 shares purchasable upon exercise of warrants)
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
858,064 (includes 200,000 shares purchasable upon exercise of
warrants)
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12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) [ X ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
15.4%
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14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
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<PAGE>
SCHEDULE 13D
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CUSIP No. 908315 Page 3 of 8 Pages
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1 NAMES OF REPORTING PERSONS/I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Rush River Group LLC, a Minnesota limited liability company;
FEIN: 41-1920090
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS) (a) [X]
(b) [ ]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
WC
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5 CHECK 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
Rush River Group LLC is a Minnesota limited liability company
------------------------- --------- ------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH
420,000 (includes 200,000 shares purchasable upon exercise of warrants)
--------- ------------------------------------------------------------------------------------------
8 SHARED VOTING POWER
0
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9 SOLE DISPOSITIVE POWER
420,000 (includes 200,000 shares purchasable upon exercise of warrants)
--------- ------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
------------- ----------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
420,000 (includes 200,000 shares purchasable upon exercise of
warrants)
------------- ----------------------------------------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) [ X ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.5%
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14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
OO
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<PAGE>
SCHEDULE 13D
----------------------------------------------- ----------------------------------------------
CUSIP No. 908315 Page 4 of 8 Pages
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1 NAMES OF REPORTING PERSONS/I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Kirk A. MacKenzie
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS) (a) [X]
(b) [ ]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
PF
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5 CHECK 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 Mr. MacKenzie is a citizen of
the United States
------------------------- --------- ------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH
70,000
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8 SHARED VOTING POWER
420,000 (includes 200,000 shares purchasable upon exercise of warrants)
--------- ------------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
70,000
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10 SHARED DISPOSITIVE POWER
420,000 (includes 200,000 shares purchasable upon exercise of warrants)
------------- ----------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
490,000 (includes 200,000 shares purchasable upon exercise of
warrants)
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12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) [ X ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
8.8%
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14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
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<PAGE>
SCHEDULE 13D
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CUSIP No. 908315 Page 5 of 8 Pages
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1 NAMES OF REPORTING PERSONS/I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Jack A. Norqual
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS) (a) [X]
(b) [ ]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
PF
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5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ]
------------- ----------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION Mr. Norqual is a citizen of
the United States
------------------------- --------- ------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH
70,000
--------- ------------------------------------------------------------------------------------------
8 SHARED VOTING POWER
420,000 (includes 200,000 shares purchasable upon exercise of warrants)
--------- ------------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
70,000
--------- ------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
420,000 (includes 200,000 shares purchasable upon exercise of warrants)
------------- ----------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
490,000 (includes 200,000 shares purchasable upon exercise of
warrants)
------------- ----------------------------------------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) [ X ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
8.8%
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14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
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</TABLE>
<PAGE>
Item 1. Security and Issuer.
This Schedule 13D (the "Statement") relates to the Common Stock, no par
value per share (the "Common Stock"), of Grow Biz International, Inc., a
Minnesota corporation (the "Company"). The principal executive office of the
Company is located at 4200 Dahlberg Drive, Minneapolis, MN 55422-4837.
Item 2. Identity and Background.
No change.
Item 3. Source and Amount of Funds or Other Consideration.
On August 1, 2000, the Company issued to Rush River Group LLC ("Rush
River") a warrant to purchase 200,000 shares of Common Stock of the Company at
an exercise price of $2.00 per share. The warrant was acquired for investment
purposes in a privately negotiated transaction. The Warrant became exercisable
in October 2000.
From August 1, 2000 through November 11, 2000, John L. Morgan acquired
11,464 shares in the open market using personal funds in the total amount of
approximately $47,602.25.
Item 4. Purpose of Transaction.
The Company issued a warrant to purchase 200,000 shares of Common Stock
to Rush River in consideration of Rush River providing a credit facility to the
Company. John L. Morgan and Rush River acquired the shares and warrant to
purchase shares of Common Stock that are the subject of this Schedule 13D/A for
investment purposes. The Reporting Persons may, individually or collectively,
increase their investments in the Company through the acquisition of additional
shares of Common Stock in the open market or otherwise, subject to availability
at prices deemed favorable by them. Alternatively, they may decide to sell any
or all of the shares of Common Stock beneficially owned by them in the open
market or otherwise. The foregoing represents the range of activities presently
contemplated by the Reporting Persons. Their plans, proposals and activities are
subject to change at any time depending on, among other things, the actions of
the Company's Board of Directors, the Company's performance and conditions in
the public securities markets.
Except as set forth above, none of the Reporting Persons has any
present plans or intentions that would result in or relate to any of the
transactions described in subparagraphs (a) through (j) of Item 4 of Schedule
13D.
Item 5. Interest in Securities of the Issuer.
(a) Set forth below are the shares of Common Stock of the Company
beneficially owned by each of the Reporting Persons and the percentage of the
total outstanding shares as of the date of this filing. The foregoing percentage
is based upon 5,386,433 shares of Common Stock outstanding on November 6, 2000,
as set forth in the Company's Quarterly Report on Form 10-Q for the quarter
ended September 23, 2000.
<PAGE>
Percentage of Total
Reporting Person No. Shares Owned Shares Outstanding
John L. Morgan 858,064*,** 15.4%
Rush River Group LLC 420,000*** 7.5%
Kirk A. MacKenzie 490,000* 8.8%
Jack A. Norqual 490,000* 8.8%
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* Includes beneficial ownership of shares and warrant held by Rush River
Group LLC.
** Includes 4,300 shares held by Sheila Morgan, his wife, for which he
disclaims beneficial ownership.
*** Includes warrant to purchase 200,000 shares of Common Stock.
(b) With the exception of 4,300 shares held by Sheila Morgan, his wife,
Mr. Morgan has the sole power to vote and dispose of the shares of Common Stock
which he beneficially owns. Mr. Morgan also has shared voting and dispositive
power, together with Messrs. MacKenzie and Norqual, over the shares of the
Company beneficially owned by Rush River, due to their respective positions as
members of the LLC. Rush River holds 220,000 shares of record and a warrant to
purchase 200,000 shares of the Company and shares voting and dispositive power
to vote or dispose of such shares with each of the other Reporting Persons. Each
of Messrs. Morgan, MacKenzie and Norqual disclaim any beneficial ownership of
the shares held by the other persons, either individually or in their respective
capacities as members of Rush River. Mr. Morgan disclaims beneficial ownership
with respect to the 4,300 shares held by Sheila Morgan, his wife.
(c) Transactions in the Common Stock effected by Rush River since the
most recent filing on Schedule 13D are as set forth in Item 3 above. John L.
Morgan made the following open market purchases since the most recent filing on
Schedule 13D:
Purchase Price
Trade Date No. of Shares Per Share
8/1/00 500 $4.00
8/1/00 500 $4.125
8/9/00 2,200 $4.25
8/21/00 1,000 $4.00
8/22/00 2,000 $4.00
8/23/00 600 $4.00
8/24/00 139 $4.00
10/27/00 200 $4.25
11/3/00 4,000 $4.25
11/6/00 325 $4.25
Other than as described above, the Reporting Persons have not effected any
transactions in the securities of the Company since the most recent filing on
Schedule 13D.
(d) Not applicable.
(e) Not applicable.
<PAGE>
Item 6. Contracts, Arrangements, Understandings or Relationships With Respect
to Securities of the Issuer.
No change.
Item 7. Material to be Filed as Exhibits.
None.
SIGNATURE
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: November 7, 2000.
/s/ John L. Morgan
John L. Morgan, individually
Rush River Group LLC
By: /s/ John L. Morgan
John L. Morgan
Its: Member
/s/ Kirk A. MacKenzie
Kirk A. MacKenzie, individually
/s/ Jack A. Norqual
Jack A. Norqual, individually
