1. | NAMES OF REPORTING PERSONS |
2. | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) ¨ |
3. | SEC USE ONLY |
4. | SOURCE OF FUNDS AF |
5. | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) o |
6. | CITIZENSHIP OR PLACE OF ORGANIZATION United States of America |
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH | 7. | SOLE VOTING POWER 0 |
8. | SHARED VOTING POWER 1,690,679(2) |
9. | SOLE DISPOSITIVE POWER 0 |
10. | SHARED DISPOSITIVE POWER 1,690,679(2) |
11. | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
12. | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES ¨ |
13. | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11 9.0% (3) |
14. | TYPE OF REPORTING PERSON IN |
(1) This Schedule 13D is filed by RWI Ventures II, L.P., (“RWI”), RWI Ventures Management II, LLC (“RWIM”), William R. Baumel (“Baumel”) and Mark J. Foley (“Foley” and collectively with RWI and RWIM, and Baumel, the “Reporting Persons”). The Reporting Persons expressly disclaim status as a “group” for purposes of this Schedule 13D.
(2) Includes (a) 718,357 shares of Common Stock of the Issuer, (b) warrants to purchase up to 69,550 shares of common stock of the Issuer at an exercise price of $1.10 per share and (c) 3% Convertible Notes due 2014 convertible at any time into 902,772 shares of common stock of the Issuer at a conversion price of $1.10. The reported securities are owned directly by RWI Ventures II, L.P., and indirectly by RWI Ventures II Management LLC, as general partner of RWI Ventures II, L.P., and William R. Baumel and Mark J. Foley, as managing members of RWI Ventures II Management LLC. RWI Ventures II Management LLC, Mr. Baumel and Mr. Foley disclaim beneficial ownership of the reported securities except to the extent of their pecuniary interest therein.
(3) All percentage ownership reported in this Schedule 13D is based on an aggregate of 18,745,094 shares of common stock, par value $.0.01 per share of the Issuer ("Common Stock") based upon the sum of (i) 13,391,439 shares of common stock, par value $.0.01 per share of the Issuer ("Common Stock"), outstanding as of May 7, 2010, as reported by the Issuer in its Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission on May 7, 2010; (ii) 2,416,272 restricted shares of Common Stock issued in connection with an Asset Purchase Agreement, as reported by the Issuer in its Current Report on Form 8-K, filed with the Securities and Exchange Commission on August 3, 2010; and (iii) 2,727,272 shares of Common Stock reserved for conversion of the $3 million of convertible notes at $1.10 per sha re and 210,111 shares of Common Stock issuable upon the exercise of the warrants, both issued under the Securities Purchase Agreement, as reported by the Issuer in its Current Report on Form 8-K, filed with the Securities and Exchange Commission on August 3, 2010.
1. | NAMES OF REPORTING PERSONS |
2. | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) ¨ |
3. | SEC USE ONLY |
4. | SOURCE OF FUNDS AF |
5. | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) o |
6. | CITIZENSHIP OR PLACE OF ORGANIZATION State of Delaware, United States of America |
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH | 7. | SOLE VOTING POWER 0 |
8. | SHARED VOTING POWER 1,690,679(2) |
9. | SOLE DISPOSITIVE POWER 0 |
10. | SHARED DISPOSITIVE POWER 1,690,679(2) |
11. | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
12. | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES ¨ |
13. | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11 9.0% (3) |
14. | TYPE OF REPORTING PERSON PN |
(1) This Schedule 13D is filed by RWI Ventures II, L.P., (“RWI”), RWI Ventures Management II, LLC (“RWIM”), William R. Baumel (“Baumel”) and Mark J. Foley (“Foley” and collectively with RWI and RWIM, and Baumel, the “Reporting Persons”). The Reporting Persons expressly disclaim status as a “group” for purposes of this Schedule 13D.
(2) Includes (a) 718,357 shares of Common Stock of the Issuer, (b) warrants to purchase up to 69,550 shares of common stock of the Issuer at an exercise price of $1.10 per share and (c) 3% Convertible Notes due 2014 convertible at any time into 902,772 shares of common stock of the Issuer at a conversion price of $1.10. The reported securities are owned directly by RWI Ventures II, L.P., and indirectly by RWI Ventures II Management LLC, as general partner of RWI Ventures II, L.P., and William R. Baumel and Mark J. Foley, as managing members of RWI Ventures II Management LLC. RWI Ventures II Management LLC, Mr. Baumel and Mr. Foley disclaim beneficial ownership of the reported securities except to the extent of their pecuniary interest therein.
(3) All percentage ownership reported in this Schedule 13D is based on an aggregate of 18,745,094 shares of common stock, par value $.0.01 per share of the Issuer ("Common Stock") based upon the sum of (i) 13,391,439 shares of common stock, par value $.0.01 per share of the Issuer ("Common Stock"), outstanding as of May 7, 2010, as reported by the Issuer in its Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission on May 7, 2010; (ii) 2,416,272 restricted shares of Common Stock issued in connection with an Asset Purchase Agreement, as reported by the Issuer in its Current Report on Form 8-K, filed with the Securities and Exchange Commission on August 3, 2010; and (iii) 2,727,272 shares of Common Stock reserved for conversion of the $3 million of convertible notes at $1.10 per sha re and 210,111 shares of Common Stock issuable upon the exercise of the warrants, both issued under the Securities Purchase Agreement, as reported by the Issuer in its Current Report on Form 8-K, filed with the Securities and Exchange Commission on August 3, 2010.
ITEM 1. Security and Issuer.
This Schedule 13D relates to the common stock, par value $0.01 per share (the “Common Stock”) of St. Bernard Software, Inc. (the “Issuer”). The principal executive office of the Issuer is located at 15015 Avenue of Science, San Diego, California 92128. Information given in response to each item shall be deemed incorporated by reference in all other items, as applicable.
ITEM 2. Identity and Background.
(a) This Schedule 13D is filed by RWI Ventures II, L.P., (“RWI”), RWI Ventures Management II, LLC (“RWIM”), William R. Baumel (“Baumel”) and Mark J. Foley (“Foley” and collectively with RWI and RWIM, and Baumel, the “Reporting Persons”). The Reporting Persons expressly disclaim status as a “group” for purposes of this Schedule 13D.
(b) The address of the principal place of business of the Reporting Persons is RWI Ventures II, L.P., 900 E. Hamilton Avenue, Suite 100, Campbell, California 95008.
(c) The principal business of the Reporting Persons is venture capital investment.
(d) During the last five years, none of the Listed Persons (as defined below), to the knowledge of the Reporting Persons, has been convicted in any criminal proceeding (excluding traffic violations or similar misdemeanors).
(e) During the last five years, none of the Listed Persons (as defined below), to the knowledge of the Reporting Persons, has 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 or finding any violation with respect to such laws.
(f) RWI is a Delaware limited partnership. RWIM is a Delaware limited liability company. Baumel is a citizen of the United States of America. Foley is a citizen of the United States of America.
In accordance with the provisions of General Instruction C to Schedule 13D, information concerning the managers and each other person controlling RWIM, the general partner of RWI (the “Listed Persons”), required by Item 2 of Schedule 13D is listed on Schedule I hereto and is incorporated by reference herein.
ITEM 3. Source and Amount of Funds or Other Consideration.
The information set forth in Item 4 hereof is hereby incorporated by reference into this Item 3, as applicable.
ITEM 4. Purpose of Transaction.
On August 2, 2010, in connection with an Asset Purchase Agreement (“APA”) among the Issuer, Red Condor, Inc., a private Delaware corporation (“Red Condor”) and certain note holders of Red Condor, pursuant to which the Issuer purchased substantially all of the assets and assumed certain liabilities of Red Condor for restricted shares of Common Stock, RWI received 718,357 shares of Common Stock (the “Shares”). The source of funds for the purchase of the Shares was provided by the cancellation of existing indebtedness of Red Condor held by RWI.
In addition, in connection with the APA and pursuant to that certain Securities Purchase Agreement (“SPA”) among the Issuer and certain investors identified therein, dated July 28, 2010, RWI purchased $993,050 worth of 3% Convertible Notes due 2014 (the “Notes”) and warrants to purchase up to 69,550 shares of Common Stock (the “Warrants”). The Notes are convertible into 902,772 shares of common stock of the Issuer. RWI may convert the Notes at any time into shares of Common Stock at a conversion price of $1.10. The Warrants have an exercise price equal to $1.10 per share, are immediately exercisable and expire on August 2, 2014. The source of funds for the purchase of the Notes was the working capital of RWI.
In connection with the SPA, the Issuer appointed William R. Baumel to the Issuer’s Board of Directors. Under the terms of the SPA, the Issuer agreed to use commercially reasonable efforts to cause the appointment and maintenance in office a designee of RWI Ventures (the “RWI Designee”) to the Issuer’s Board of Directors, with William R. Baumel being the initial RWI Designee, so long as RWI Ventures holds in the aggregate at least 50% of (i) the shares of Common Stock issued to it pursuant to the APA and (ii) the shares of Common Stock issued or issuable upon conversion and/or exercise of the Notes and Warrants purchased by RWI Ventures hereunder.