(5) Comprised of 84,934 shares of common stock, warrants to purchase 116,172 shares of common stock, 2,172,685 shares of common stock issuable as of November 14, 2012 upon the conversion of 13,168 shares of Series A-1 Convertible Preferred Stock, 4,283,534 shares of common stock issuable as of November 14, 2012 upon the conversion of 12,179 shares of Series A-2 Convertible Preferred Stock, and 1,116,191 shares of common stock issuable as of November 14, 2012 upon the conversion of 3,832 shares of Series A-3 Convertible Preferred Stock.
(6) See footnote 2 above.
The Schedule 13D filed on October 19, 2009 by (i) Deerfield Mgmt, L.P. (formerly Deerfield Capital, L.P.) (“Deerfield Mgmt”), (ii) Deerfield Special Situations Fund, L.P. (“Deerfield Special Situations Fund”), (iii) Deerfield Private Design Fund, L.P. (“Deerfield Private Design Fund”), (iv) Deerfield Private Design International, L.P. (“Deerfield Private Design International”), (v) Deerfield Management Company, L.P. (“Deerfield Management”), (vi) Deerfield Special Situations Fund International, Limited (“Deerfield Special Situations International”) and (vii) James E. Flynn, a natural person (“Flynn” and collectively with Deerfield Mgmt, Deerfield Special Situations Fund, Deerfield Private Design Fund, Deerfield Private Design International, Deerfield Management and Deerfield Special Situations International, the “Reporting Persons”), as amended by Amendment No. 1 filed on June 11, 2010, Amendment No. 2 filed on September 16, 2010, Amendment No. 3 filed on February 4, 2011, Amendment No. 4 filed on May 25, 2011, Amendment No. 5 filed on June 13, 2011, Amendment No. 6 filed on June 24, 2011, Amendment No. 7 filed on September 7, 2011, Amendment No. 8 filed on January 12, 2012, Amendment No. 9 filed on March 16, 2012, Amendment No. 10 filed on May 9, 2012, Amendment No. 11 filed on July 20, 2012 and Amendment No. 12 filed on August 21, 2012 with respect to the securities of Talon Therapeutics, Inc. (the “Company”) (formerly Hana Biosciences, Inc.) is hereby amended by this Amendment No. 13. Only those items hereby reported in this Amendment No. 13 are amended and all other items remain unchanged. Terms used herein but not otherwise defined herein shall have the meanings ascribed thereto in the Schedule 13D, as amended.
Item 3. Source and Amount of Funds or Other Consideration.
Item 3 of the Schedule 13D is hereby amended to include the following:
In accordance with the Facility Agreement (as previously reported on Amendment No. 8 filed January 12, 2012 by the Reporting Persons), in lieu of the Company’s interest payment obligation under the Facility Agreement in the aggregate amount of $682,753.42 for the quarter ended September 30, 2012, on September 28, 2012, the Company issued and delivered to the Reporting Persons an aggregate of 6,826 shares of Series A-2 Convertible Preferred Stock (convertible as of September 28, 2012 into an aggregate of 2,275,333 shares of Common Stock) and paid cash in lieu of fractional shares an aggregate amount of $153.42. The shares of Series A-2 Convertible Preferred Stock issued and delivered to the Reporting Persons consisted of (i) 401 shares of Series A-2 Convertible Preferred Stock (convertible as of September 28, 2012 into 133,667 shares of Common Stock) issued to Deerfield Special Situations Fund, (ii) 736 shares of Series A-2 Convertible Preferred Stock (convertible as of September 28, 2012 into 245,333 shares of Common Stock) issued to Deerfield Special Situations International, (iii) 2,179 shares of Series A-2 Convertible Preferred Stock (convertible as of September 28, 2012 into 726,333 shares of Common Stock) issued to Deerfield Private Design Fund, and (iv) 3,510 shares of Series A-2 Convertible Preferred Stock (convertible as of September 28, 2012 into 1,170,000 shares of Common Stock) issued to Deerfield Private Design International.
Set forth below is the source and amount of funds and other consideration utilized by Deerfield Special Situations Fund, Deerfield Private Design Fund, Deerfield Private Design International and Deerfield Special Situations International (collectively, the “Deerfield Purchasers”) to acquire the shares of Series A-3 Convertible Preferred Stock of the Company (the “Series A-3 Preferred Stock”) as described in this Amendment No. 13.
Deerfield Special Situations Fund utilized available cash assets in the amount of $17,600 to acquire 176 shares of Series A-3 Preferred Stock. Deerfield Private Design Fund utilized available cash assets in the amount of $95,800 to acquire 958 shares of Series A-3 Preferred Stock. Deerfield Private Design International utilized available cash assets in the amount of $154,300 to acquire 1,543 shares of Series A-3 Preferred Stock. Deerfield Special Situations International utilized available cash assets in the amount of $32,300 to acquire 323 shares of Series A-3 Preferred Stock. Cash funds for the purchase of the Series A-3 Preferred Stock were derived from general working capital, and includes funds provided by investors in the Deerfield Purchasers.
Item 4. Purpose of Transaction.
Item 4 of the Schedule 13D is hereby amended to include the following:
On November 14, 2012, pursuant to the terms of the 2012 Investment Agreement (as amended by the Amendment to the 2012 Investment Agreement), the Deerfield Purchasers purchased 3,000 shares of Series A-3 Preferred Stock for an aggregate purchase price of $300,000.
Item 5. Interest in Securities of the Issuer.
Items 5(a), 5(b) and 5(c) of the Schedule 13D are amended and restated to read as follows:
All of the computations and share amounts used here do not give effect to any accretion of shares Series A-1 Preferred Stock, Series A-2 Preferred Stock or Series A-3 Preferred Stock after November 14, 2012.
(a)
(1) Reporting Persons
Number of shares: 24,409,921 (13)
Percentage of shares: 52.96% (2)
(2) Deerfield Mgmt
Number of shares: 21,745,951 (1)
Percentage of shares: 50.00% (2)
(3) Deerfield Special Situations Fund
Number of shares: 1,449,910 (3)
Percentage of shares: 6.19% (2)
(4) Deerfield Private Design Fund
Number of shares: 7,773,516 (5)
Percentage of shares: 26.18% (2)
(5) Deerfield Private Design International
Number of shares: 12,522,525 (7)
Percentage of shares: 36.42% (2)
(6) Deerfield Management
Number of shares: 24,409,921 (9)
Percentage of shares: 52.96% (2)
(7) Deerfield Special Situations International
Number of shares: 2,663,970 (11)
Percentage of shares: 10.83% (2)
(8) Flynn
Number of shares: 24,409,921 (13)
Percentage of shares: 52.96% (2)
(b)
(1) Deerfield Mgmt
Sole power to vote or direct the vote: 0
Shared power to vote or direct the vote: 21,745,951 shares (1)
Sole power to dispose or to direct the disposition: 0
Shared power to dispose or direct the disposition: 21,745,951 shares (1)
(2) Deerfield Special Situations Fund
Sole power to vote or direct the vote: 0
Shared power to vote or direct the vote: 1,449,910 shares (3)
Sole power to dispose or to direct the disposition: 0
Shared power to dispose or direct the disposition: 1,449,910 shares (3)
(3) Deerfield Private Design Fund
Sole power to vote or direct the vote: 0
Shared power to vote or direct the vote: 7,773,516 shares (5)
Sole power to dispose or to direct the disposition: 0
Shared power to dispose or direct the disposition: 7,773,516 shares (5)
(4) Deerfield Private Design International
Sole power to vote or direct the vote: 0
Shared power to vote or direct the vote: 12,522,525 shares (7)
Sole power to dispose or to direct the disposition: 0
Shared power to dispose or direct the disposition: 12,522,525 shares (7)
(5) Deerfield Management
Sole power to vote or direct the vote: 0
Shared power to vote or direct the vote: 24,409,921 shares (9)
Sole power to dispose or to direct the disposition: 0
Shared power to dispose or direct the disposition: 24,409,921 shares (9)
(6) Deerfield Special Situations International
Sole power to vote or direct the vote: 0
Shared power to vote or direct the vote: 2,663,970 shares (11)
Sole power to dispose or to direct the disposition: 0
Shared power to dispose or direct the disposition: 2,663,970 shares (11)
(7) Flynn
Sole power to vote or direct the vote: 0
Shared power to vote or direct the vote: 24,409,921 shares (13)
Sole power to dispose or to direct the disposition: 0
Shared power to dispose or direct the disposition: 24,409,921 shares (13)
Flynn is the sole member of the general partner of each of Deerfield Mgmt and Deerfield Management. Deerfield Mgmt is the general partner of Deerfield Special Situations Fund, Deerfield Private Design Fund and Deerfield Private Design International. Deerfield Management is the investment advisor of Deerfield Special Situations International, Deerfield Special Situations Fund, Deerfield Private Design Fund and Deerfield Private Design International.
(c) As described under Item 3 above, on September 28, 2012, in lieu of the Company’s interest payment obligation under the Facility Agreement for the quarter ended September 30, 2012, the Company issued and delivered to the Reporting Persons an aggregate of 6,826 shares of Series A-2 Convertible Preferred Stock, consisting of (i) 401 shares of Series A-2 Convertible Preferred Stock issued to Deerfield Special Situations Fund, (ii) 736 shares of Series A-2 Convertible Preferred Stock issued to Deerfield Special Situations International, (iii) 2,179 shares of Series A-2 Convertible Preferred Stock issued to Deerfield Private Design Fund, and (iv) 3,510 shares of Series A-2 Convertible Preferred Stock issued to Deerfield Private Design International.
As described under Item 3 above, on November 14, 2012, Deerfield Special Situations Fund acquired 176 shares of Series A-3 Preferred Stock, Deerfield Private Design Fund acquired 958 shares of Series A-3 Preferred Stock, Deerfield Private Design International acquired 1,543 shares of Series A-3 Preferred Stock and Deerfield Special Situations International acquired 323 shares of Series A-3 Preferred Stock pursuant to the terms of the 2012 Investment Agreement (as amended by the Amendment to the 2012 Investment Agreement). Shares of Series A-3 Preferred Stock are convertible into Common Stock.
SIGNATURE
After reasonable inquiry and to the best of their knowledge and belief, the undersigned certify that the information set forth in this statement is true, complete and correct.
Dated: November 16, 2012