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FORM 4 OMB Approval
U.S. SECURITIES AND EXCHANGE COMMISSION -------------------------
[ ] Check this box if no longer WASHINGTON, D.C. 20549 OMB Number 3236-0287
subject to Section 16. Form Expires: April 30, 1997
4 or Form 5 obligations may STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Estimated average burden
continue. See Instruction 1(b). hours per response 0.6
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility
Holding Company Act of 1935 or Section 30(f) of the Investment Company Act of 1940
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1. Name and Address of Reporting Person| 2. Issuer Name and Ticker or Trading Symbol | 6. Relationship of Reporting Person
| Mountasia Entertainment International, Inc. | to Issuer (Check all applicable)
McNamara, Donald J. | (FUNN) | _____ Director __X__ 10% Owner
- -------------------------------------------------------------------------------------------| _____ Officer (give title below)
(Last) (First) (Middle) | 3. IRS or Social | 4. Statement for | _____ Other (specify below)
2200 Ross Avenue | Security Number | Month/Year |
Suite 4200 West | of Reporting | 07/96 |
- ---------------------------------------| Person (Voluntary) |-------------------------|
(Street) | | 5. If Amendment, | ________________________________
| | Date of Original |
| | (Month/Year) |
Dallas, Texas 75201 | | 06/96 |
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(City) (State) (Zip) | Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
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1. Title of Security | 2.Transaction | 3.Transaction | 4.Securities Acquired(A) | 5.Amount of | 6.Owner-| 7.Nature
(Instr. 3) | Date | Code | or Disposed of (D) | Securities | ship | of
| (Month/Day/ | (Instr. 8) | (Instr. 3, 4, and 5) | Beneficially| Form: | Indirect
| Year) | | | Owned at End| Direct | Bene-
| | --------------|--------------------------| of Month | (D) or | ficial
| | | | Amount | (A) | Price | (Instr. 3 | Indirect| Owner-
| | Code | V | | or | | and 4) | (I) | ship
| | | | | (D) | | |(Instr.4)|(Instr.4)
- ---------------------------------------|---------------|-------|-------|--------|------|----------|-------------|---------|---------
Common Stock, no par value | 07/24/96 | J* | |908,301*| A | $3.41* | 11,727,967* | I |By
| | | | | | | | |Hampstead
| | | | | | | | |Associ-
| | | | | | | | |ates,
| | | | | | | | |Inc.
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| | | | | | | | |
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- ---------------------------------------|---------------|-------|-------|--------|------|----------|-------------|---------|---------
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Reminder: Report on a separate line for each class of securities beneficially owned, directly or indirectly. (over)
(Print or Type Response) SEC 1474 (8/92)
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FORM 4 (CONTINUED) TABLE II - DERIVATIVE SECURITIES ACQUIRED, DISPOSED OF, OR BENEFICIALLY OWNED BY
(E.G., PUTS, CALLS, WARRANTS, OPTIONS, CONVERTIBLE SECURITIES)
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1.Title of Derivative Security | 2.Conversion | 3.Transaction | 4.Transaction | 5.Number of | 6.Date Exer- | 7.Title and Amount
(Instr. 3) | or Exercise | Date | Code | Derivative | cisable and | of Underlying
| Price of | | (Instr. 8) | Securities | Expiration Date | Securities
| Derivative | (Month/Day/ | | Acquired (A) | (Month/Day/Year) | (Instr. 3 and 4)
| Security | Year) | | or Disposed | |
| | | | of (D) |--------------------------------------
| | | | (Instr. 3, | Date | Expir- | | Amount or
| | | | 4, and 5) | Exer- | ation | Title | Number of
| | |---------------|--------------| cisable | Date | | Shares
| | | Code | V | (A) | (D) | | | |
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Common Stock | ** | 07/24/96 | J** | | A | ** | ** | ** |Warrant | **
- -------------------------------|--------------|---------------|-------|-------|------|-------|---------|--------|--------|----------
Common Stock or Series F | | | | | | | | | |
Preferred Stock | *** | 07/24/96 | J*** | | A | *** | *** | *** | *** | ***
- -------------------------------|--------------|---------------|-------|-------|------|-------|---------|--------|--------|----------
| | | | | | | | | |
- -------------------------------|--------------|---------------|-------|-------|------|-------|---------|--------|--------|----------
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- -------------------------------|--------------|---------------|-------|-------|------|-------|---------|--------|--------|----------
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- -------------------------------|--------------|---------------|-------|-------|------|-------|---------|--------|--------|----------
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- -------------------------------|--------------|---------------|-------|-------|------|-------|---------|--------|--------|----------
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- -------------------------------|--------------|---------------|-------|-------|------|-------|---------|--------|--------|----------
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- -------------------------------|--------------|---------------|-------|-------|------|-------|---------|--------|--------|----------
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- -------------------------------|--------------|---------------|-------|-------|------|-------|---------|--------|--------|----------
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8.Price of | 9.Number of | 10.Ownership | 11.Nature of |
Derivative | Derivative | Form of | Indirect |
Security | Securities | Derivative | Beneficial |
(Instr. 5) | Beneficially | Security; | Ownership |
| Owned at End | Direct (D) or | (Instr. 4) |
| of Month | Indirect (I) | |
| (Instr. 4) | (Instr. 4) | |
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| | |By Hampstead |
** | ** | I |Associates, Inc.|
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| | |By Hampstead |
*** | *** | I |Associates, Inc.|
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Explanation of Responses:
* Pursuant to a letter agreement dated July 23, 1996 (the "Amendment") the
issuer and MEI Holdings, L.P. (the "Purchaser") agreed to amend the
Investment Agreement, dated June 5, 1996 (as so amended, the "Investment
Agreement") to increase the number of shares of Common Stock that
the Purchaser will acquire for its $40.0 million investment from
44.44% to 45.45%. The actual number of shares acquired and the price per
share may be more or less than the above amount depending on the number of
shares of Common Stock outstanding at the time of the closing under the
Investment Agreement.
** Pursuant to the Amendment the warrant to be issued at the closing under the
Investment Agreement will provide that Purchaser would receive (without
payment of additional consideration) .8333 shares of Common Stock (subject
to adjustment up to 1.25 shares in the event of the exercise of the
Company's $20 Million Put or the Purchaser's $20 Million Call (each as
defined below)) for each share of Common Stock issued upon conversion or
exercise of any convertible debt or preferred stock outstanding as of
immediately following the closing, regardless of the conversion price
thereunder. The warrant continues to provide (as disclosed on the filer's
Form 3 dated June 17, 1996) that the Purchaser will receive additional
shares of Common Stock upon any post-closing issuance of Common Stock under
existing commitments below 130% of the Purchaser's per-share investment
price.
*** Pursuant to the Amendment (a), for three years after the closing date,
the Company will have the right (the "Company's $20 Million Put") to
compel the Purchaser to invest up to an additional $20.0 million (less
the amount invested under the Purchaser's $20 Million Call described
below) to purchase Common Stock at $3.50 per share (subject to adjustment
in the event that the total number of shares of Common Stock outstanding
immediately prior to the closing is greater than 13,714,498, the "Per
Share Option Price") and (b), for five years after the closing date, the
Purchaser will have the right to invest in the Company up to $20.0
million (the "Purchaser's $20 Million Call") (less any amount invested
under the Company's $20 Million Put) to purchase Common Stock at the Per
Share Option Price. The Amendment provides that the issuer will use its
best efforts to obtain shareholder approval of, among other things, the
issuance of Common Stock pursuant to the Company's $20 Million Put and
the Purchaser's $20 Million Call within 180 days after the closing. If
such shareholder approval is not obtained, upon exercise of the Company's
$20 Million Put or the Purchaser's $20 Million Call, the Purchaser would
receive Series F Preferred Stock in lieu of Common Stock and the Per Share
Option Price would be reduced by 15%. The non-voting Series F Preferred
Stock will be convertible into Common Stock on a one-share-for-one-share
basis at any time after shareholder approval of the issuance of Common
Stock has been obtained.
By: /s/ Donald J. McNamara August 12, 1996
** Intentional misstatements or omissions of facts constitute --------------------------------- -----------------
Federal Criminal Violations. **Signature of Reporting Person Date
See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. Donald J. McNamara
If space provided is insufficient, see Instruction 6 for procedure. Page 2
SEC 1474 (8-92)
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