FORM 4
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 4
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
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
[ ] Check this box if no longer subject to Section 16. Form 4 or Form 5
obligations may continue. See Instruction 1(b).
================================================================================
1. Name and Address of Reporting Person
Rosenwald, M.D., Lindsay A.
- --------------------------------------------------------------------------------
(Last) (First) (Middle)
c/o Paramount Capital, Inc.
787 Seventh Avenue, 48th Floor
- --------------------------------------------------------------------------------
(Street)
New York NY 10019
- --------------------------------------------------------------------------------
(City) (State) (Zip)
================================================================================
2. Issuer Name and Ticker or Trading Symbol
AVAX Technologies, Inc. (AVXT)
================================================================================
3. IRS or Social Security Number of Reporting Person (Voluntary)
================================================================================
4. Statement for Month/Year
July 1998
================================================================================
5. If Amendment, Date of Original (Month/Year)
================================================================================
6. Relationship of Reporting Person to Issuer
(Check all applicable)
[ ] Director [X] 10% Owner
[ ] Officer (give title below) [ ] Other (specify below)
================================================================================
7. Individual or Joint/Group Filing (Check Applicable Line)
[X] Form filed by One Reporting Person
[ ] Form filed by More than One Reporting Person
================================================================================
<PAGE>
================================================================================
Table I -- Non-Derivative Securities Acquired, Disposed of,
or Beneficially Owned
================================================================================
<TABLE>
<CAPTION>
6.
4. 5. Owner-
Securities Acquired (A) or Amount of ship
3. Disposed of (D) Securities Form: 7.
Transaction (Instr. 3, 4 and 5) Beneficially Direct Nature of
2. Code ------------------------------- Owned at End (D) or Indirect
1. Transaction (Instr. 8) (A) of Month Indirect Beneficial
Title of Security Date ------------ Amount or Price (Instr. 3 (I) Ownership
(Instr. 3) (mm/dd/yy) Code V (D) and 4) (Instr.4) (Instr. 4)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
By The
Aries
Common Stock 7/10/98 J(1) V 116,969 A N/A(1) 1,619,089(3) I Trust(2)
- ------------------------------------------------------------------------------------------------------------------------------------
By Aries
Domestic
Fund,
Common Stock 7/10/98 J(1) V 50,129 A N/A(1) 1,619,089(3) I L.P.(2)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
====================================================================================================================================
</TABLE>
Reminder: Report on a separate line for each class of securities beneficially
owned directly or indirectly.
Page 1 of 2
<PAGE>
FORM 4 (continued)
Table II -- Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
================================================================================
<TABLE>
<CAPTION>
9. 10.
Number Owner-
of ship
2. Deriv- of
Conver- 5. 7. ative Deriv- 11.
sion Number of Title and Amount Secur- ative Nature
of Derivative 6. of Underlying 8. ities Secur- of
Exer- 4. Securities Date Securities Price Bene- ity: In-
cise 3. Trans- Acquired (A) Exercisable and (Instr. 3 and 4) of ficially Direct direct
Price Trans- action or Disposed Expiration Date ---------------- Deriv- Owned (D) or Bene-
1. of action Code of(D) (Month/Day/Year) Amount ative at End In- ficial
Title of Deriv- Date (Instr. (Instr. 3, ---------------- or Secur- of direct Owner-
Derivative ative (Month/ 8) 4 and 5) Date Expira- Number ity Month (I) ship
Security Secur- Day/ ------ ------------ Exer- tion of (Instr. (Instr. (Instr. (Instr.
(Instr. 3) ity Year) Code V (A) (D) cisable Date Title Shares 5) 4) 4) 4)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
N/A
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
====================================================================================================================================
</TABLE>
Explanation of Responses:
(1) Dr. Rosenwald acquired shares of Common Stock, par value $.004 per share
("Common Stock") pursuant to the contractual reset provision of lock-up
agreements entered into by the Issuer with each of The Aries Trust, A Cayman
Island Trust (the "Trust") and Aries Domestic Fund, L.P. (the "Partnership,
and together with the Trust, the "Funds"). In consideration of the agreement
of the Funds to extend the lock-up period with respect to their shares of
Common Stock issuable upon conversion of shares of Series B Convertible
Preferred Stock, par value $.01 per share ("Series B Preferred Stock"), each
of the Funds became subject to an additional "Reset Event", such that the
Issuer became obligated to issue additional shares of Common Stock to the
Funds in the event that the average closing bid price of the Common Stock
for the 30 consecutive trading days immediately preceding July 10, 1998 was
less than $5.175 per share (135% of the then applicable conversion price).
The 30 consecutive trading day average for the Common Stock was, in fact,
approximately $3.15. Accordingly, each of the Funds became entitled to
receive approximately 16.7 additional shares of Common Stock for each share
of Series B Preferred Stock that they owned as of July 10, 1998, without
payment of additional consideration.
(2) Securities beneficially acquired represent shares of Common Stock issued to
the Trust and the Partnership, respectively. Paramount Capital Asset
Management, Inc. ("Paramount Capital"), of which Dr. Rosenwald is the sole
shareholder, is the General Partner of the Partnership and also serves as
the investment manager to the Trust. Dr. Rosenwald may be deemed to have
voting and investment control over the securities of the issuer owned by the
Trust and the Partnership under Rule 16a-(a)(1) of the Securities Exchange
Act of 1934. Paramount Capital and Dr. Rosenwald disclaim beneficial
ownership of the securities held by the Trust and the Partnership, except to
the extent of their pecuniary interest therein.
(3) See Attachment A.
/s/ Lindsay A. Rosenwald, M.D. August 10, 1998
- --------------------------------------------- -----------------------
** Signature of Reporting Person Date
** Intentional misstatements or omissions of facts constitute Federal Criminal
Violations. 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.
If space provided is insufficient, see Instruction 6 for procedures.
Page 2 of 2
<PAGE>
Attachment A
Securities beneficially owned by Dr. Rosenwald include the following:
1. 512,492 shares of Common Stock owned directly by Dr. Rosenwald, 17,000
shares of Common Stock issuable upon exercise of Bridge Placement Warrants
owned directly by Dr. Rosenwald and 320,949 shares of Common Stock
issuable upon conversion of shares of Series B Preferred Stock issuable
upon exercise of Series B Placement Warrants owned directly by Dr.
Rosenwald.
2. 42,775 shares of Common Stock owned by June Street Corporation and
Huntington Street Corporation, of which Dr. Rosenwald is the sole
proprietor.
3. 199,314 shares of Common Stock owned by Dr. Rosenwald's wife and trusts in
favor of his minor children. Dr. Rosenwald disclaims beneficial ownership
of such shares.
4. 228,348 shares of Common Stock owned directly by The Funds, as well as an
aggregate of 298,211 shares of Common Stock issuable upon conversion of
shares of Series B Preferred Stock held directly by the Funds or issuable
upon exercise of Series B Placement Warrants and Bridge Placement Warrants
held by the Funds. Dr. Rosenwald disclaims beneficial ownership of such
shares owned by the Funds, except to the extent of his pecuniary interest,
if any.
