SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Schedule 13G
(Rule 13d-102)
INFORMATION STATEMENT PURSUANT TO RULES 13d-1 AND 13d-2
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(Amendment No._______)*
ArthroCare Corporation
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(Name of Issuer)
Common Stock
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(Title of Class of Securities)
000043136100
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(CUSIP Number)
*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).
(Continued on following pages)
Page 1 of 11 Pages
Exhibit Index Contained on Page 10
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CUSIP NO. 00043136100 13 G Page 2 of 11 Pages
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1 NAME OF REPORTING PERSONS
SS OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
Paragon Venture Partners II, L.P. ("Paragon")
Tax ID Number: 77-0217756
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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 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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NUMBER OF 5 SOLE VOTING POWER
SHARES 1,032,187 shares, except that
BENEFICIALLY Paragon Venture Management II, L.P.
OWNED BY EACH REPORTING ("PVM"), the general partner of
PERSON Paragon, and Messrs. Kibble and
WITH Lewis, the general partners of PVM,
may be deemed to have shared power
to vote these shares.
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6 SHARED VOTING POWER
See response to row 5.
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7 SOLE DISPOSITIVE POWER
1,032,187 shares, except that PVM,
the general partner of Paragon, and
Messrs. Kibble and Lewis, the
general partners of PVM, may be
deemed to have shared power to
dispose of these shares.
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8 SHARED DISPOSITIVE POWER
See response to row 7.
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9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH
REPORTING PERSON 1,032,187
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10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9)
EXCLUDES CERTAIN SHARES* [ ]
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11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
11.76%
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12 TYPE OF REPORTING PERSON*
PN
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<FN>
* SEE INSTRUCTIONS BEFORE FILLING OUT!
</FN>
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<TABLE>
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CUSIP NO. 00043136100 13 G Page 3 of 11 Pages
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1 NAME OF REPORTING PERSONS
SS OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
Paragon Venture Management II, L.P. ("PVM")
Tax ID Number: 94-3074874
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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 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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NUMBER OF 5 SOLE VOTING POWER
SHARES 0 shares.
BENEFICIALLY
OWNED BY EACH REPORTING
PERSON
WITH
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6 SHARED VOTING POWER
1,032,187 shares, which are all
directly owned by Paragon. PVM is
the general partner of Paragon, and
Messrs. Kibble and Lewis, the
general partners of PVM, may be
deemed to have shared power to vote
these shares.
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7 SOLE DISPOSITIVE POWER
0 shares.
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8 SHARED DISPOSITIVE POWER
1,032,187 shares, which are all
directly owned by Paragon. PVM is
the general partner of Paragon, and
Messrs. Kibble and Lewis, the
general partners of PVM, may be
deemed to have shared power to
dispose of these shares.
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9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH
REPORTING PERSON 1,032,187
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10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9)
EXCLUDES CERTAIN SHARES* [ ]
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11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
11.76%
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12 TYPE OF REPORTING PERSON*
PN
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<FN>
* SEE INSTRUCTIONS BEFORE FILLING OUT!
</FN>
</TABLE>
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<CAPTION>
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CUSIP NO. 00043136100 13 G Page 4 of 11 Pages
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1 NAME OF REPORTING PERSONS
SS OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
Robert F. Kibble
Tax ID Number: ###-##-####
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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 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
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NUMBER OF 5 SOLE VOTING POWER
SHARES 24,250 shares held by the Robert F.
BENEFICIALLY Kibble Living Trust
OWNED BY EACH REPORTING
PERSON
WITH
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6 SHARED VOTING POWER
1,032,187 shares, which are all
directly owned by Paragon. Kibble
is a general partner of PVM, the
general partner of Paragon, and may
be deemed to have shared power to
vote these shares.
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7 SOLE DISPOSITIVE POWER
24,250 shares held by the Robert F.
Kibble Living Trust.
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8 SHARED DISPOSITIVE POWER
1,032,187 shares, which are all
directly owned by Paragon. Kibble
is a general partner of PVM, the
general partner of Paragon, and may
be deemed to have shared power to
dispose of these shares.
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9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH
REPORTING PERSON 1,056,437
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10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9)
EXCLUDES CERTAIN SHARES* [ ]
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11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
12.04%
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12 TYPE OF REPORTING PERSON*
IN
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<FN>
* SEE INSTRUCTIONS BEFORE FILLING OUT!
</FN>
</TABLE>
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CUSIP NO. 00043136100 13 G Page 5 of 11 Pages
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NAME OF REPORTING PERSONS
1 SS OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
John S. Lewis
Tax ID Number: ###-##-####
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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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CITIZENSHIP OR PLACE OF ORGANIZATION
4 United States
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SOLE VOTING POWER
NUMBER OF SHARES 5 53,025 shares of which 43,025 are
BENEFICIALLY held directly by Lewis, and 10,000
OWNED BY EACH REPORTING PERSON are held by John S. Lewis UTA
WITH Charles Schwab & Co. Inc. Paragon
Venture Management Company.
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SHARED VOTING POWER
6 1,032,187 shares, which are all
directly owned by Paragon. Lewis is
a general partner of PVM, the
general partner of Paragon, and may
be deemed to have shared power to
vote these shares.
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7 SOLE DISPOSITIVE POWER
53,025 shares of which 43,025 are
held directly by Lewis, and 10,000
are held by John S. Lewis UTA
Charles Schwab & Co. Inc. Paragon
Venture Management Company.
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8 SHARED DISPOSITIVE POWER
1,032,187 shares, which are all
directly owned by Paragon. Lewis is
a general partner of PVM, the
general partner of Paragon, and may
be deemed to have shared power to
dispose of these shares.
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9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH
REPORTING PERSON 1,085,212
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10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9)
EXCLUDES CERTAIN SHARES* Excludes 5,000 shares held in trusts for
Mr. Lewis' children over which he does not exercise voting or
dispositive control. [X]
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11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
12.41%
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12 TYPE OF REPORTING PERSON*
IN
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<FN>
* SEE INSTRUCTIONS BEFORE FILLING OUT!
</FN>
</TABLE>
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Page 6 of 11 Pages
ITEM 1(a). NAME OF ISSUER:
ArthroCare Corporation
ITEM 1(b). ADDRESS OF ISSUER'S PRINCIPAL EXECUTIVE OFFICES:
595 North Pastoria Avenue
Sunnyvale, CA 94086
ITEM 2(a). NAME OF PERSONS FILING:
This Statement is filed by Paragon Venture Partners II, L.P.
("Paragon"), Paragon Venture Management II, L.P. ("PVM"),
Robert F. Kibble ("Kibble") and John S. Lewis ("Lewis"). The
foregoing entities and individuals are collectively referred
to as the "Reporting Persons."
PVM is the general partner of Paragon and may be deemed to
have shared power to vote and shared power to dispose of
shares of the issuer directly owned by Paragon. Kibble and
Lewis are the general partners of PVM and may be deemed to
have shared power to vote and shared power to dispose of the
shares of issuer directly owned by Paragon.
ITEM 2(b). ADDRESS OF PRINCIPAL BUSINESS OFFICE, OR, IF NONE, RESIDENCE:
The address of the principal business office for each of the
Reporting Persons is:
Paragon Venture Partners
3000 Sand Hill Road
Building 1, Suite 275
Menlo Park, CA 94025
ITEM 2(c) CITIZENSHIP:
Paragon and PVM are Delaware limited partnerships and Kibble
and Lewis are United States citizens.
ITEM 2(d). TITLE OF CLASS OF SECURITIES:
Common Stock
ITEM 2(e). CUSIP NUMBER:
CUSIP # 00043136100
ITEM 3. Not Applicable
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Page 7 of 11 Pages
ITEM 4. OWNERSHIP:
The following information with respect to the ownership of the
Common Stock of the issuer by the persons filing this
Statement is provided as of December 31, 1996:
(a) Amount beneficially owned:
See Row 9 of cover page for each Reporting
Person.
(b) Percent of Class:
See Row 11 of cover page for each Reporting
Person.
(c) Number of shares as to which such person
has:
(i) Sole power to vote or to
direct the vote:
See Row 5 of cover page for
each Reporting Person.
(ii) Shared power to vote or to
direct the vote:
See Row 6 of cover page for
each Reporting Person.
(iii) Sole power to dispose or to
direct the disposition of:
See Row 7 of cover page for
each Reporting Person.
(iv) Shared power to dispose or
to direct the disposition
of:
See Row 8 of cover page for
each Reporting Person.
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Page 8 of 11 Pages
ITEM 5. OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS:
Not applicable.
ITEM 6. OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER
PERSON:
Under certain circumstances set forth in the limited
partnership agreements of Paragon and PVM, the general and
limited partners of each of such entities may be deemed to
have the right to receive dividends from, or the proceeds
from, the sale of shares of the issuer owned by each such
entity of which they are a partner.
ITEM 7. IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY WHICH
ACQUIRED THE SECURITY BEING REPORTED ON BY THE PARENT HOLDING
COMPANY:
Not applicable.
ITEM 8. IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE GROUP:
Not applicable
ITEM 9. NOTICE OF DISSOLUTION OF GROUP:
Not applicable
ITEM 10. CERTIFICATION:
Not applicable
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Page 9 of 11 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 correct.
Dated: February 13, 1997
/s/ John S. Lewis
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John S. Lewis, individual and on
behalf of Paragon in his capacity as a
general partner of PVM, the general
partner of Paragon, and on behalf of
PVM in his capacity as a general
partner thereof.
/s/ Robert F. Kibble
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Robert F. Kibble
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Page 10 of 11 Pages
EXHIBIT INDEX
Found on
Sequentially
Exhibit Numbered Page
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Exhibit A: Agreement of Joint Filing 11
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Page 11 of 11 Pages
EXHIBIT A
Agreement of Joint Filing
The undersigned hereby agree that a single Schedule 13G (or
any amendment thereto) relating to the Common Stock of ArthroCare Corporation
shall be filed on behalf of each of the undersigned and that this Agreement
shall be filed as an exhibit to such Schedule 13G.
Date: February 13, 1997
/s/ John S. Lewis
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John S. Lewis, individual and on
behalf of Paragon in his capacity as a
general partner of PVM, the general
partner of Paragon, and on behalf of
PVM in his capacity as a general
partner thereof.
/s/ Robert F. Kibble
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Robert F. Kibble
