<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
Amendment No. 4
Mountasia Entertainment International, Inc.
- --------------------------------------------------------------------------------
(Name of Issuer)
COMMON STOCK, NO PAR VALUE
- --------------------------------------------------------------------------------
(Title of Class of Securities)
624547105
--------------------------
(CUSIP Number)
MEI Holdings, L.P.
4200 Texas Commerce Tower West
2200 Ross Ave.
Dallas, Texas 75201
Attention: Daniel A. Decker
(214) 220-4900
- --------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
With a copy to:
Robert A. Profusek, Esq.
Jones, Day, Reavis & Pogue
599 Lexington Avenue
New York, New York
(212) 326-3939
November 7, 1996
------------------------------------
(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(b)(3) or (4), check the following box / /.
Check the following box if a fee is being paid with this statement / /.
(Continued on following page)
(Page 1 of 15 Pages)
<PAGE> 2
SCHEDULE 13D
================================================================================
CUSIP No. 624547105 Page 2 of Pages
================================================================================
================================================================================
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
MEI Holdings, L.P.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP a / /
b /x/
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or (e) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
NUMBERS OF --------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIAL 11,727,970(1)
LY OWNED --------------------------------------------------------------
BY EACH 9 SOLE DISPOSITIVE POWER
REPORTING 0
PERSON --------------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
11,727,970(1)
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11,727,970(1)
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* /x/
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
45.45%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Does not give effect to certain shares of Common Stock which the Registered
Holder would be entitled to receive upon the occurrence of certain future
events outside the Registered Holder's control as described in Item 4
hereof.
<PAGE> 3
SCHEDULE 13D
================================================================================
CUSIP No. 624547105 Page 3 of Pages
================================================================================
================================================================================
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
MEI GenPar, L.P.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP a / /
b /x/
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or (e) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
NUMBERS OF --------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIAL 11,727,970(1)
LY OWNED --------------------------------------------------------------
BY EACH 9 SOLE DISPOSITIVE POWER
REPORTING 0
PERSON --------------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
11,727,970(1)
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11,727,970(1)
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* /x/
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
45.45%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT
(1) Does not give effect to certain shares of Common Stock which the Registered
Holder would be entitled to receive upon the occurrence of certain future
events outside the Registered Holder's control as described in Item 4
hereof.
<PAGE> 4
SCHEDULE 13D
================================================================================
CUSIP No. 624547105 Page 4 of Pages
================================================================================
================================================================================
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
HH Genpar Partners
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP a / /
b /x/
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or (e) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Texas
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
NUMBERS OF --------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIAL 11,727,970(1)
LY OWNED --------------------------------------------------------------
BY EACH 9 SOLE DISPOSITIVE POWER
REPORTING 0
PERSON --------------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
11,727,970(1)
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11,727,970(1)
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* /x/
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
45.45%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Does not give effect to certain shares of Common Stock which the Registered
Holder would be entitled to receive upon the occurrence of certain future
events outside the Registered Holder's control as described in Item 4
hereof.
<PAGE> 5
SCHEDULE 13D
================================================================================
CUSIP No. 624547105 Page 5 of Pages
================================================================================
================================================================================
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Hampstead Associates, Inc.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP a / /
b /x/
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or (e) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Texas
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
NUMBERS OF --------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIAL 11,727,970(1)
LY OWNED --------------------------------------------------------------
BY EACH 9 SOLE DISPOSITIVE POWER
REPORTING 0
PERSON --------------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
11,727,970(1)
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11,727,970(1)
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* /x/
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
45.45%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Does not give effect to certain shares of Common Stock which the Registered
Holder would be entitled to receive upon the occurrence of certain future
events outside the Registered Holder's control as described in Item 4
hereof.
<PAGE> 6
SCHEDULE 13D
================================================================================
CUSIP No. 624547105 Page 6 of Pages
================================================================================
================================================================================
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
RAW GenPar, Inc.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP a / /
b /x/
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or (e) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Texas
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
NUMBERS OF --------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIAL 11,727,970(1)
LY OWNED --------------------------------------------------------------
BY EACH 9 SOLE DISPOSITIVE POWER
REPORTING 0
PERSON --------------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
11,727,970(1)
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11,727,970(1)
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* /x/
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
45.45%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Does not give effect to certain shares of Common Stock which the Registered
Holder would be entitled to receive upon the occurrence of certain future
events outside the Registered Holder's control as described in Item 4
hereof.
<PAGE> 7
SCHEDULE 13D
================================================================================
CUSIP NO. 624547105 PAGE 7 OF PAGES
================================================================================
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
InMed, Inc. d/b/a Incap, Inc.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP a / /
b /X/
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or (e) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Texas
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
-------------------------------------------------------------
NUMBERS OF 8 SHARED VOTING POWER
SHARES 11,727,970(1)
BENEFICIAL -------------------------------------------------------------
LY OWNED 9 SOLE DISPOSITIVE POWER
BY EACH 0
REPORTING -------------------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER
WITH 11,727,970(1)
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11,727,970(1)
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* /X/
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
45.45%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Does not give effect to certain shares of Common Stock which the Registered
Holder would be entitled to receive upon the occurrence of certain future
events outside the Registered Holder's control as described in Item 4
hereof.
<PAGE> 8
SCHEDULE 13D
================================================================================
CUSIP NO. 624547105 PAGE 8 OF PAGES
================================================================================
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Donald J. McNamara
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP a / /
b /X/
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or (e) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
-------------------------------------------------------------
NUMBERS OF 8 SHARED VOTING POWER
SHARES 11,727,970(1)
BENEFICIAL -------------------------------------------------------------
LY OWNED 9 SOLE DISPOSITIVE POWER
BY EACH 0
REPORTING -------------------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER
WITH 11,727,970(1)
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11,727,970(1)
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* /X/
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
45.45%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Does not give effect to certain shares of Common Stock which the Registered
Holder would be entitled to receive upon the occurrence of certain future
events outside the Registered Holder's control as described in Item 4
hereof.
<PAGE> 9
SCHEDULE 13D
================================================================================
CUSIP NO. 624547105 PAGE 9 OF PAGES
================================================================================
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Robert A. Whitman
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP a / /
b /X/
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or (e) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
-------------------------------------------------------------
NUMBERS OF 8 SHARED VOTING POWER
SHARES 11,727,970(1)
BENEFICIAL -------------------------------------------------------------
LY OWNED 9 SOLE DISPOSITIVE POWER
BY EACH 0
REPORTING -------------------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER
WITH 11,727,970(1)
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11,727,970(1)
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* /X/
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
45.45%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Does not give effect to certain shares of Common Stock which the Registered
Holder would be entitled to receive upon the occurrence of certain future
events outside the Registered Holder's control as described in Item 4
hereof.
<PAGE> 10
SCHEDULE 13D
================================================================================
CUSIP NO. 624547105 PAGE 10 OF PAGES
================================================================================
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Daniel A. Decker
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP a / /
b /X/
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or (e) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
-------------------------------------------------------------
NUMBERS OF 8 SHARED VOTING POWER
SHARES 11,727,970(1)
BENEFICIAL -------------------------------------------------------------
LY OWNED 9 SOLE DISPOSITIVE POWER
BY EACH 0
REPORTING -------------------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER
WITH 11,727,970(1)
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11,727,970(1)
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* /X/
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
45.45%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Does not give effect to certain shares of Common Stock which the Registered
Holder would be entitled to receive upon the occurrence of certain future
events outside the Registered Holder's control as described in Item 4
hereof.
<PAGE> 11
This Amendment No. 4 amends and supplements the Statement on Schedule
13D filed on June 17, 1996, as amended by Amendments No. 1, No. 2 and No. 3 (the
"Schedule 13D"), by MEI Holdings, L.P., a Delaware limited partnership, and
certain other persons. Capitalized terms used herein which are not otherwise
defined herein are so used with the respective meanings ascribed to them in
the Schedule 13D.
Item 4 of the Schedule 13d is hereby amended by adding the following
thereto:
As publicly announced by the Company on November 7, 1996, at the request
of the Company in order for the Company to comply with the guidelines of the
American Stock Exchange, Holdings will provide the capital required for the
Company to redeem its $4.6 million aggregate principal amount of 10% Convertible
Debentures (the "Current Converts"). In consideration of its making such capital
available to the Company, Holdings will receive 203,257 shares of Series G
Preferred Stock of the Company ("Series G Preferred"), each such share of Series
G Preferred to be initially convertible (upon receipt of shareholder approval as
discussed below) into ten shares of Common Stock (or a total of 2,032,565
shares). The Series G Preferred will (i) be non-voting, (ii) have a liquidation
preference equal to the amount received by the Company for its issuance, (iii)
have a dividend rate of 7% per annum with unpaid dividends to accrue but be
payable only at such time as dividends are declared and paid on the Company's
Common Stock, and (iv) not be convertible into shares of Common Stock until
shareholder approval is obtained. Dividends accrued but not declared would not
be payable in Common Stock and would be lost upon conversion of the Series G
Preferred into Common Stock. Accordingly, Holdings does not presently expect
that any dividends will actually be paid on the Series G Preferred. If
Holdings' all-in effective net price per share (after giving effect to Holdings'
anti-dilution protections, including valuation adjustments, for the Common Stock
purchased by Holdings in its initial $40 million investment ("Holdings' Base
Price Per Share")) at the time of the conversion of the Series G Preferred is
not determinable or is later determined to be different than it was at the time
of such conversion and, in either case, is higher than $2.26, then Holdings will
return to the Company such number of shares of Common Stock as is necessary so
that the number of shares of Common Stock into which the Series G Preferred
is converted equals the number of shares of Common Stock into which the
Current Converts would have been convertible if their conversion price had
been equal to Holdings' Base Price Per Share. Holdings has agreed not to sell
any Series G Preferred or Common Stock so received in the market for six months.
At the request of the Company, Holdings has agreed to make a tender
offer for outstanding shares of Company Common Stock at $3.50 per share, net to
the seller in cash, in order to provide shareholders who desire liquidity for
their Common Stock the opportunity to sell those shares of Common Stock at
prices higher than the market prices prevailing prior to the time of
announcement of the Company's redemption of the Current Converts and other
matters on November 7, 1996. The tender offer is expected to be commenced on
November 15, 1996. Holdings initially indicated to the Company that Holdings
anticipated that the appropriate expiration date for the tender offer would be
January 7, 1997 (unless extended or previously terminated). However, Holdings is
currently evaluating all terms of the tender offer, including the expiration
date, and presently expects to set an expiration date in calendar year 1996 and
to fix all other terms of the tender offer, including the conditions thereto as
Holdings sees fit (except that Holdings does not presently intend to modify the
expected tender offer price of $3.50 per share). Holdings has been informed that
none of the current members of the Company's Board of Directors intends to
tender shares pursuant to the tender offer. Until shareholder approval of the
issuance of Common Stock (rather than, or upon conversion of, non-voting
preferred stock) to Holdings is obtained, shares of Common Stock purchased
pursuant to the tender offer will be voted by Holdings in the same proportion as
shares are voted by other shareholders. Holders of the 9% and 9.1% convertible
debentures of the Company (the "Other Converts") which are not presently
convertible (but become convertible in 1997) will be permitted to participate in
the tender offer at a price which, in effect, assumes the conversion of those
debentures at the tender offer price.
Assuming (i) the redemption of the Current Converts as described above,
(ii) the conversion of all of the $17.1 million aggregate principal amount of
the Other Converts (whether or not sold pursuant to the tender offer), and (iii)
the anticipated issuance of approximately 650,000 shares in settlement of
certain claims by third parties against the Company arising out of events
occurring prior to Holdings' investment in the Company, the total number of
outstanding shares of Common Stock would increase by 7.7 million shares. Under
the Investment Agreement and the Warrant, the issuance by the Company of those
7.7 million shares would result in the Company issuing approximately 640,000
shares of Series F Preferred (which are convertible into 6.4 million shares of
Holdings Common Stock upon shareholder approval) to Holdings without the payment
of additional consideration. Such additional shares of Series F Preferred would
have been so issued to Holdings whether or not provision for the funding by
Holdings of the redemptions of the Outstanding Converts had been made as
described above. After these issuances of Common Stock and assuming the
conversion of all Series F and G Preferred Stock into Common Stock and the
conversion of Other Converts at a conversion price of $3.50 per share, Holdings
estimates that the Company would have outstanding a total of 42 million shares
of Common Stock. However, the foregoing computation is based upon various
assumptions, including, in addition to the factors indicated above, that (i) all
Other Converts are converted and that the conversion price for the Other
Converts is $3.50 per share (rather than a lower price, which could apply if
stock market prices for Common Stock are lower at the time of actual
conversion), (ii) Holdings' Base Price Per Share is at or below $2.26, (iii) the
issuance of the 650,000 shares as described above, (iv) that shareholder
approval as described above is obtained, and (iv) there are no post-closing
adjustments under the Investment Agreement. Accordingly, the actual number of
shares of Common Stock that the Company will have outstanding in the
circumstances described above cannot be determined at this time.
On November 7, 1996, the Company also announced certain changes in its
senior management, including among others, the election of Robert A Whitman,
the Chairman of the Board of the Company and Co-Chief Executive Officer of
Hampstead, as interim Chief Executive Officer (without compensation) of the
Company until a new Chief Executive Officer is appointed (a search therefor
being underway) and the election of Richard M. FitzPatrick, currently Chief
Financial Officer of Hampstead, as the interim Chief Financial Officer of
the Company.
<PAGE> 12
SIGNATURES
After reasonable inquiry and to the best of its knowledge and belief, the
undersigned certifies that the information set forth in this statement is true,
complete and correct and agrees that this statement may be filed collectively on
behalf of it and each of MEI GenPar, L.P., HH GenPar Partners, Hampstead
Associates, Inc., RAW GenPar, Inc., InMed, Inc., Donald J. McNamara, Robert A.
Whitman and Daniel A. Decker.
Dated: November 8, 1996 MEI HOLDINGS, L.P.
By: MEI GenPar, L.P.
Its General Partner
By: HH GenPar Partners
Its General Partner
By: Hampstead Associates, Inc.
Its Managing General Partner
By: /s/ Daniel A. Decker
---------------------------
Daniel A. Decker
Executive Vice President
After reasonable inquiry and to the best of its knowledge and belief, the
undersigned certifies that the information set forth in this statement is true,
complete and correct and agrees that this statement may be jointly filed on
behalf of it and each of MEI Holdings, L.P., HH GenPar Partners, Hampstead
Associates, Inc., RAW GenPar, Inc., InMed, Inc., Donald J. McNamara, Robert A.
Whitman and Daniel A. Decker.
Dated: November 8, 1996 MEI GENPAR, L.P.
By: HH GenPar Partners
Its General Partner
By: Hampstead Associates, Inc.
Its Managing General Partner
By: /s/ Daniel A. Decker
-------------------------------
Daniel A. Decker
Executive Vice President
<PAGE> 13
After reasonable inquiry and to the best of its knowledge and belief, the
undersigned certifies that the information set forth in this statement is true,
complete and correct and agrees that this statement may be jointly filed on
behalf of it and each of MEI Holdings, L.P., MEI GenPar, L.P., Hampstead
Associates, Inc., RAW GenPar, Inc., InMed, Inc., Donald J. McNamara, Robert A.
Whitman and Daniel A. Decker.
Dated: November 8, 1996 HH GENPAR PARTNERS
By: Hampstead Associates, Inc.
Its Managing General Partner
By: /s/ Daniel A. Decker
-----------------------------
Daniel A. Decker
Executive Vice President
After reasonable inquiry and to the best of its knowledge and belief, the
undersigned certifies that the information set forth in this statement is true,
complete and correct and agrees that this statement may be jointly filed on
behalf of it and each of MEI Holdings, L.P., MEI GenPar, L.P., HH GenPar
Partners, RAW GenPar, Inc., InMed, Inc., Donald J. McNamara, Robert A. Whitman
and Daniel A. Decker.
Dated: November 8, 1996 HAMPSTEAD ASSOCIATES, INC.
By: /s/ Daniel A. Decker
----------------------------------
Daniel A. Decker
Executive Vice President
After reasonable inquiry and to the best of its knowledge and belief, the
undersigned certifies that the information set forth in this statement is true,
complete and correct and agrees that this statement may be jointly filed on
behalf of it and each of MEI Holdings, L.P., MEI GenPar, L.P., HH GenPar
Partners, Hampstead Associates, Inc., InMed, Inc., Donald J. McNamara, Robert A.
Whitman and Daniel A. Decker.
Dated: November 8, 1996 RAW GENPAR, INC.
By: /s/ Robert A. Whitman
-----------------------------------
Robert A. Whitman
President
<PAGE> 14
After reasonable inquiry and to the best of its knowledge and belief, the
undersigned certifies that the information set forth in this statement is true,
complete and correct and agrees that this statement may be jointly filed on
behalf of it and each of MEI Holdings, L.P., MEI GenPar, L.P., HH GenPar
Partners, Hampstead Associates, Inc., RAW GenPar, Inc., Donald J. McNamara,
Robert A. Whitman and Daniel A. Decker.
Dated: November 8, 1996 INMED, INC.
By: /s/ Daniel A. Decker
-----------------------------
Daniel A. Decker
President
After reasonable inquiry and to the best of his knowledge and belief, the
undersigned certifies that the information set forth in this statement is true,
complete and correct and agrees that this statement may be jointly filed on
behalf of him and each of MEI Holdings, L.P., MEI GenPar, L.P., HH GenPar
Partners, Hampstead Associates, Inc., RAW GenPar, Inc., InMed, Inc.,
Robert A. Whitman and Daniel A. Decker.
Dated: November 8, 1996
/s/ Donald J. McNamara
----------------------------------
Donald J. McNamara
After reasonable inquiry and to the best of his knowledge and belief, the
undersigned certifies that the information set forth in this statement is true,
complete and correct and agrees that this statement may be jointly filed on
behalf of him and each of MEI Holdings, L.P., MEI GenPar, L.P., HH GenPar
Partners, Hampstead Associates, Inc., RAW GenPar, Inc., InMed, Inc.,
Donald J. McNamara and Daniel A. Decker.
Dated: November 8, 1996
/s/ Robert A. Whitman
----------------------------------
Robert A. Whitman
<PAGE> 15
After reasonable inquiry and to the best of his knowledge and belief, the
undersigned certifies that the information set forth in this statement is true,
complete and correct and agrees that this statement may be jointly filed on
behalf of him and each of MEI Holdings, L.P., MEI GenPar, L.P., HH GenPar
Partners, Hampstead Associates, Inc., RAW GenPar, Inc., InMed, Inc., Donald J.
McNamara and Robert A. Whitman.
Dated: November 8, 1996 /s/ Daniel A. Decker
---------------------------------------
Daniel A. Decker
