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CUSIP No. 816080 10 5 (Page 1 of 7 Pages)
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
Sel-Drum International, Inc.
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(Name of Issuer)
Common Stock
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(Title of Class of Securities)
816080 10 5
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(CUSIP Number)
James M. Jenkins, Esq.
Harter, Secrest & Emery LLP
700 Midtown Tower
Rochester, New York 14604-2070
(716) 232-6500
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(Name, Address and Telephone Number of Person Authorized
to Receive Notices and Communications)
July 6, 1999
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(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
schedule because of sections 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check
the following box: [ ]
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CUSIP No. 816080 10 5 (Page 2 of 7 Pages)
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13D
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1 NAME OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
ROBERT E. ASSELTINE
BRIAN F. TURNBULL
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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:
OO
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5 CHECK BOX 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
ROBERT E. ASSELTINE: New Zealand
BRIAN F. TURNBULL: Canada
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NUMBER OF 7 SOLE VOTING POWER:
SHARES ROBERT E. ASSELTINE: 1,769,680 (INCLUDES 237,000 SHARES HELD BY
BENEFICIALLY GERALDINE ASSELTINE)
OWNED BY EACH
REPORTING BRIAN F. TURNBULL: 4,514,000 SHARES OF COMMON STOCK HELD BY
PERSON WITH 547118 ONTARIO LTD. (A COMPANY CONTROLLED BY MR. TURNBULL)
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8 SHARED VOTING POWER:
N/A
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9 SOLE DISPOSITIVE POWER:
ROBERT E. ASSELTINE: 1,769,680 (INCLUDES 237,000 SHARES HELD BY
GERALDINE ASSELTINE)
BRIAN F. TURNBULL: 4,514,000 SHARES OF COMMON STOCK HELD BY
547118 ONTARIO LTD. (A COMPANY CONTROLLED BY MR. TURNBULL)
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10 SHARED DISPOSITIVE POWER:
N/A
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CUSIP No. 816080 10 5 (Page 3 of 7 Pages)
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<CAPTION>
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
ROBERT E. ASSELTINE: 1,769,680 (INCLUDES 237,000 SHARES HELD BY GERALDINE ASSELTINE)
BRIAN F. TURNBULL: 4,514,000 SHARES OF COMMON STOCK HELD BY 547118 ONTARIO LTD.
(A COMPANY CONTROLLED BY MR. TURNBULL)
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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)
ROBERT E. ASSELTINE 23.7%
BRIAN F. TURNBULL 60.5%
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14 TYPE OF REPORTING PERSON*
IN
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*SEE INSTRUCTIONS
Item 1. Security and Issuer
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This Schedule 13D relates to the Common Stock $.01 par value, of
Sel-Drum International, Inc., a New York corporation, 501 Amherst
Street, Buffalo, New York 14207-2913.
Item 2. Identity and Background
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(a) Robert E. Asseltine
Brian F. Turnbull
(b) The address of Messrs. Asseltine and Turnbull is c/o Sel-Drum
International, Inc., 501 Amherst Street, Buffalo, New York
14207-2913.
(c) Mr. Asseltine is retired and serves as a consultant to the
Company and Mr. Turnbull.
Mr. Turnbull's present principal occupation is acting as the
Company's Chairman of the Board of Directors as well as
developing the Company's sales outside of North America.
(d) During the last five years, neither of Messrs. Asseltine or
Turnbull has been convicted in a criminal proceeding.
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CUSIP No. 816080 10 5 (Page 4 of 7 Pages)
(e) During the last five years, neither of Messrs. Asseltine or
Turnbull has been a party to a civil proceeding of a judicial
or administrative body of competent jurisdiction.
(f) Robert E. Asseltine is a citizen of New Zealand.
Brian F. Turnbull is a citizen of Canada.
Item 3. Source and Amount of Funds or Other Consideration.
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Cash. It is currently unclear whether Purchasers will utilize
borrowings to purchase the shares.
Item 4. Purpose of Transaction.
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During the last month, Brian F. Turnbull, Chairman of the Board of
Directors of Sel-Drum International, Inc. (the "Corporation"), and
Robert E. Asseltine, an advisor of Mr. Turnbull's and a consultant
to the Corporation, had advised the Board of Directors of the
Corporation that they were considering a number of alternatives
directed at maximizing the value of their respective direct and
beneficial holdings of the Corporation's Common Stock and their
Preferred Stock holdings in the Corporation's Sel-Drum Imaging
Corporation subsidiary and to facilitate their personal Estate
Planning. Messrs. Turnbull and Asseltine have indicated that some of
these alternatives involved disposition of their interests as a block
to one or more buyers which could result in a "change of control" as
that term is used under the Federal Securities laws.
On July 6, 1999, Messrs. Turnbull and Asseltine delivered an executed
original Term Sheet (the "Term Sheet") among themselves, Cotran
Holding Inc. and Densigraphix Kopi Inc. (the "Purchasers"). Pursuant to
the Term Sheet, Messrs. Asseltine and Turnbull have agreed to sell to
the Purchasers all of the shares of the Corporation's Common Stock
beneficially held by them at a price of $.40 per share. Additionally,
Messrs. Asseltine and Turnbull have agreed to deliver and sell to the
Purchasers an additional 1,119,000 shares of Common Stock held by family
members or related parties.
The Term Sheet further provides for the Purchasers' acquisition of all
outstanding shares of Preferred Stock held by Messrs. Asseltine and
Turnbull (or their affiliates) in the Corporation's Sel-Drum Imaging
Corporation subsidiary. The purchase price for the Preferred Stock is
$457.90 per share.
Messrs. Turnbull and Asseltine will each indemnify the Purchasers in the
event that any of the following occur:
a. The Corporation does not report at least $5,200,000 of shareholders'
equity at July 31, 1999;
b. The Corporation's July 31, 1999 pre-tax earnings is not at least
$100,000; and
c. The Corporation's current reserve for doubtful accounts receivable at
July 31, 1999 exceeds $100,000 at July 31, 2000.
The proposed transaction is contingent upon several items including but
not limited to: the repayment of indebtedness to the Corporation owed by
related parties (approximately $159,820 owed by two corporations
controlled by Mr. Turnbull); the resignation of the current members of
the Board of Directors; and the execution of a definitive agreement.
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CUSIP No. 816080 10 5 (Page 5 of 7 Pages)
The parties are currently securing the release of any of Mr. Turnbull's
personal guarantees of the Corporation's indebtedness, as well as the
consent of the National Bank of Canada and Western Economic
Diversification Fund and any other third party consents. The parties have
further agreed that, if the transaction does not close, an amount of
$400,000 shall be paid by the party who refuses to proceed for reasons
other than a breach of representation or warranties in the definitive
agreement or refusal of any regulatory authority to proceed with the
transaction.
The parties expect the closing of the definitive agreement will take
place on or before July 30, 1999. At the closing of the transaction, the
departing current Board of Directors will name their successors to serve
until the next Annual Meeting of Shareholders.
Item 5. Interest and Securities of the Issuer
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Robert Asseltine 1,769,680* Sole Voting /Sole Dispositive
*Includes 237,000 shares owned by
Geraldine Asseltine.
Brian Turnbull 4,514,000* Sole Voting /Sole Dispositive
*These shares are owned of record by 547118
Ontario Ltd., an Ontario corporation controlled
by Mr. Turnbull.
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Item 6. Contracts, Arrangements, Understandings or Relationships with Respect
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to Securities of the Registrant.
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See Item 4 above.
Item 7. Material to be Filed as Exhibits.
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Joint Filing Agreement among Brian F. Turnbull and Robert E.
Asseltine, dated July 15, 1999.
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CUSIP No. 816080 10 5 (Page 6 of 7 Pages)
SIGNATURES
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
accurate.
Dated: July 15, 1999 /s/ Brian F. Turnbull
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Brian F. Turnbull
Dated: July 15, 1999 /s/ Robert E. Asseltine
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Robert E. Asseltine
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CUSIP No. 816080 10 5 (Page 7 of 7 Pages)
EXHIBIT 1
Joint Filing Agreement
The undersigned, for purposes of Exchange Act Rule 13(d), hereby agree
to execute and file jointly a Schedule 13D in connection with the sale of their
interests in Sel-Drum International, Inc.
Dated: July 15, 1999 /s/ Brian F. Turnbull
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Brian F. Turnbull
Dated: July 15, 1999 /s/ Robert E. Asseltine
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Robert E. Asseltine
Dated: July 15, 1999 547118 ONTARIO LTD.
/s/ Brian F. Turnbull
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By: Brian F. Turnbull
Its: President
