UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D/A
Under the Securities Exchange Act of 1934
(Amendment No.4)*
PACE Health Management Systems, Inc.
(Name of Issuer)
Common Stock, No par value per share
(Title of Class Securities)
693723108
(CUSIP Number)
Edgewater Private Equity Fund, L.P.
Attn. Mr. James A. Gordon
666 Grand Avenue, Suite 200
Des Moines, IA 50309
(515)245-5666
(Name, Address and Telephone Number of Person Authorized to Receive
Notices and Communications)
December 30, 1997
(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 o.
Check the following box if a fee is being paid with the statement o. (A
fee is not required only if the reporting person: (1) has a previous
statement on file reporting beneficial ownership of more than five
percent of the class of securities described in Item 1; and (2) has filed
no amendment subsequent thereto reporting beneficial ownership of five
percent or less of such class.) (See Rule 13d-7.)
Note: Six copies of this statement, including all exhibits, should be
filed with the Commission. See Rule 13d-1(a) for other parties to whom
copies are to be sent.
*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).
CUSIP No. :693723108
1) Names of Reporting Persons S.S. or I.R.S. Identification Nos. of Above
Person
Edgewater Private Equity Fund, L.P. 42-1382305
2) Check the Appropriate Box if a Member of a Group
2. a)
2. b)
3) SEC Use Only
4) Source of Funds: 00
5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items
2(d) or (e) o
6) Citizenship or Place of Organization : United States
Number of 7) Sole Voting Power
Shares 1,727,777
Beneficially 8) Shared Voting Power
Owned by -0-
Each 9) Sole Dispositive Power
Reporting 1,727,777
Person 10) Shared Dispositive Power
With -0-
11) Aggregate Amount Beneficially Owned by Each Reporting Person
1,727,777
12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares o
13) Percent of Class Represented by Amount in Row 11
16.4%
14) Type of Reporting Person: PN
Item 1.Security and Issuer
This Amendment 4 Statement on Schedule 13D (the "Statement") relates to
the common stock, No par value per share (the "Common Stock") and the
Convertible Preferred Stock, Series A, No par value per share of Pace
Health Management Systems, Inc., an Iowa corporation (the "Company").
The principal executive offices of the Company are located at 1025 Ashworth
Road, Suite 200, West Des Moines, IA 50265.
Item 2.Identity and Background
Item 2 a) Edgewater Private Equity Fund, L.P., (the "Purchaser") is
a Delaware limited partnership.
Item 2 b) The partnership's principal business address is 666 Grand Avenue
- Suite 200, Des Moines, IA 50309.
Item 2 c) The partnership was formed for investment purposes.
Item 2 d) During the last five years neither the partnership, its general
partner, nor the officers of the general partner have been convicted in
a criminal proceeding.
Item 2 e) During the last five years neither the partnership, its general
partner, nor the officers of the general partner have been a party to a
civil proceeding of a judicial or administrative body of competent
jurisdiction and as a result of such proceeding was or is subject to
a judgment, decree or final order enjoining future violations of, or
prohibiting or mandating activities subject to, federal or state securities
laws.
Item 3. Source and Amount of funds or Other Consideration
On December 30, 1997 the Purchaser acquired 125,000 shares of Convertible
Preferred Stock, Series A and 62,500 Common Stock Purchase Warrants in a
privately negotiated transaction from the Company for total consideration
of $125,000. As a result of this transaction each share of the Convertible
Preferred Stock, Series A previously issued is now convertible into two
shares of the Company's Common Stock. Additionaly, the Common Stock Purchase
Warrants attached to the Series A transactions have been adjusted to an
exercise price of $.50 per share. The Purchaser acquired such shares of
Convertible Preferred Stock, Series A with funds invested by its general and
limited partners for the purpose of acquiring equity securities.
Item 4.Purpose of Transaction
The Purchaser has acquired the shares of Convertible Preferred Stock, Series
A as an investment in the Company. The Purchaser may acquire additional
shares of Common Stock of the Company from time to time in the open market,
in privately negotiated transactions or otherwise. The Purchaser may
attempt to dispose of shares of Common Stock in the open market, in
privately negotiated transactions or otherwise.
The Purchaser does not have any plans or proposals which relate to or would
result in:
Item 4 a) The acquisition by any person of additional securities of the
issuer, or the disposition of securities of the issuer;
Item 4 b) An extraordinary corporate transaction, such as a merger,
reorganization or liquidation, involving the issuer or any of its
subsidiaries;
Item 4 c) A sale or transfer of a material amount of assets of the issuer
or any of its subsidiaries;
Item 4 d) Any change in the present board of directors or management of
the issuer, including any plans or proposals to change the number or term
of directors or to fill any existing vacancies on the board;
Item 4 e) Any material change in the present capitalization or dividend
policy of the issuer;
Item 4 f) Any other material change in the issuer's business or corporate
structure including but not limited to, if the issuer is a registered
closed-end investment company, any plans or proposals to make any changes
in its investment policy for which a vote is required by section 13 of
the Investment Company Act of 1940;
Item 4 g) Changes in the issuer's charter, bylaws or instruments
corresponding thereto or other actions which may impede the acquisition
of control of the issuer by any person;
Item 4 h) Causing a class of securities of the issuer to be delisted from
a national securities exchange or to cease to be authorized to be quoted in
an inter-dealer quotation system of a registered national securities
association;
Item 4 i) A class of equity securities of the issuer becoming eligible for
termination of registration pursuant to Section 12(g)(4) of the Act; or
Item 4 j) Any action similar to any of those enumerated above.
Item 5.Interest in Securities of the Issuer
Item 5 a) As of the date of this Statement, the Purchaser beneficially
owned an aggregate of 517,090 shares of Common Stock, 500,000 shares of
Convertible Preferred Stock, Series A and 710,687 Common
Stock Purchase Warrants which are currently exercisable. Each share of
Series A Convertible Preferred Stock is convertible into two shares of
Common Stock. Such shares of Common Stock, Convertible Preferred Stock,
Series A and Common Stock Purchase Warrants represent 16.4% of the
outstanding Common Stock of the Company, on an as converted basis, based
upon 10,532,471 shares of Common Stock outstanding as of December 17, 1997.
Item 5 b) The Purchaser has sole power to vote or direct the vote and
sole power to dispose or direct the disposition of 517,090 shares of
Common Stock, 500,00 shares of Convertible Preferred Stock, Series A
and 710,687 Common Stock Purchase Warrants that are owned.
Item 5 c) On December 8, 1997 the Purchaser received 71,429 Common Stock
Purchase warrants from the Company. This Warrant issuance was a condition
of a transaction with the Company completed on a date prior to the 60 days.
As a result of the transaction described in Item 3 above, the number of
warrants which were received on December 8, 1997 has been increased to
196,430 with an exercise price of $.50 per share.
Item 5 d) N/A
Item 5 e) N/A
Item 6. Contracts, Arrangements, Understandings or Relationship with
Respect to Securities of the Issuer. None.
Item 7. Material to be Filed as Exhibits: None
SIGNATURES
After reasonable inquiry and to the best of my knowledge and belief, the
undersigned certifies that the information set forth in this Statement is
true, complete and correct.
Date: January 8, 1998
/s/ James A. Gordon
- ----------------------
James A. Gordon
President of Gordon Management, Inc.
General Partner to
Edgewater Private Equity Fund, LP
