The following constitutes Amendment No. 6 to the Schedule 13D filed by the undersigned (“Amendment No. 6”). This Amendment No. 6 amends the Schedule 13D as specifically set forth herein.
Item 3. | Source and Amount of Funds or Other Consideration. |
Item 3 is hereby amended and restated to read as follows:
The Shares purchased by Lone Star Value Investors and held in a certain account managed by Lone Star Value Management (the “Lone Star Value Account”) were purchased with working capital (which may, at any given time, include margin loans made by brokerage firms in the ordinary course of business). The aggregate purchase price of the 555,588 Shares directly owned by Lone Star Value Investors is approximately $150,000, including brokerage commissions. The aggregate purchase price of the 40,130 Shares held in the Lone Star Value Account is approximately $204,453, including brokerage commissions.
As further described in Amendment No. 3 to the Schedule 13D, on May 26, 2015, pursuant to a securities purchase agreement, the Issuer issued Lone Star Value Investors the Convertible Note and the Warrant (each as defined in Item 4 of Amendment No. 3 to the Schedule 13D) for $5,000,000. Pursuant to the Convertible Note, at any time after its issuance, Lone Star Value Investors may convert the unpaid principal amount under the Convertible Note into Shares at $1.80 per Share. Based upon the original principal amount of $5,000,000, the Convertible Note may be converted into a total of 2,777,778 Shares, subject to adjustment under certain circumstances. The Warrant gives Lone Star Value Investors the right to purchase up to 2,777,777 Shares at an exercise price equal to $1.80 per Share
Item 5. | Interest in Securities of the Issuer. |
Items 5(a) – (c) are hereby amended and restated to read as follows:
The aggregate percentage of Shares reported owned by each person named herein is based upon 11,874,361 Shares outstanding as of March 15, 2016, which is the total number of Shares outstanding as reported in the Issuer’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 15, 2016.
A. | Lone Star Value Investors |
| (a) | As of the close of business on March 21, 2016 Lone Star Value Investors beneficially owned 6,111,143 Shares, including 2,777,778 Shares issuable upon the conversion of the Convertible Note and 2,777,777 Shares issuable upon the exercise of the Warrant. |
Percentage: Approximately 35.1%
| (b) | 1. | Sole power to vote or direct vote: 6,111,143 |
| 2. | Shared power to vote or direct vote: 0 |
| 3. | Sole power to dispose or direct the disposition: 6,111,143 |
| 4. | Shared power to dispose or direct the disposition: 0 |
| (c) | Lone Star Value Investors has not entered into any transactions in the Shares during the past sixty days. |
| (a) | Lone Star Value GP, as the general partner of Lone Star Value Investors, may be deemed the beneficial owner of the 6,111,143 Shares beneficially owned by Lone Star Value Investors. |
Percentage: Approximately 35.1%
| (b) | 1. | Sole power to vote or direct vote: 6,111,143 |
| 2. | Shared power to vote or direct vote: 0 |
| 3. | Sole power to dispose or direct the disposition: 6,111,143 |
| 4. | Shared power to dispose or direct the disposition: 0 |
| (c) | Lone Star Value GP has not entered into any transactions in the Shares during the past sixty days. |
C. | Lone Star Value Management |
| (a) | As of the close of business on the date hereof, 40,130 Shares were held in the Lone Star Value Account. Lone Star Value Management, as the investment manager of Lone Star Value Investors and the Lone Star Value Account, may be deemed the beneficial owner of (i) 6,111,143 Shares beneficially owned by Lone Star Value Investors and (ii) 40,130 Shares held in the Lone Star Value Account. |
Percentage: Approximately 35.3%
| (b) | 1. | Sole power to vote or direct vote: 6,151,273 |
| 2. | Shared power to vote or direct vote: 0 |
| 3. | Sole power to dispose or direct the disposition: 6,151,273 |
| 4. | Shared power to dispose or direct the disposition: 0 |
| (c) | The transactions in the Shares by Lone Star Value Management through the Lone Star Value Account during the past sixty days are set forth in Schedule A and are incorporated herein by reference. |
| (a) | Mr. Eberwein, as the manager of Lone Star Value GP and sole member of Lone Star Value Management, may be deemed the beneficial owner of the (i) 6,111,143 Shares beneficially owned by Lone Star Value Investors and (ii) 40,130 Shares held in the Lone Star Value Account. |
Percentage: Approximately 35.3%
| (b) | 1. | Sole power to vote or direct vote: 6,151,273 |
| 2. | Shared power to vote or direct vote: 0 |
| 3. | Sole power to dispose or direct the disposition: 6,151,273 |
| 4. | Shared power to dispose or direct the disposition: 0 |
| (c) | Mr. Eberwein has not entered into any transactions in the Shares during the past sixty days. The transactions in the Shares through the Lone Star Value Account during the past sixty days are set forth in Schedule A and are incorporated herein by reference. |
The Reporting Persons, as members of a “group” for the purposes of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended, may be deemed the beneficial owner of the Shares directly owned by the other Reporting Person. Each Reporting Person disclaims beneficial ownership of such Shares except to the extent of his or its pecuniary interest therein.
Item 6. | Contracts, Arrangements, Understandings or Relationships With Respect to Securities of the Issuer. |
Item 6 is hereby amended to add the following:
On March 17, 2016, Lone Star Value Management, on behalf of Lone Star Value Investors and the Lone Star Value Account, entered into a Purchase Trading Plan Agreement (the “Agreement”) with Williams Trading for the purpose of establishing a trading plan to effect purchases of Shares of the Issuer in compliance with all applicable laws, including, without limitation, Section 10(b) of the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder, including, but not limited to, Rule 10b5-1.
The Agreement allows for the purchase of up to an aggregate of 94,282 Shares by Williams Trading on behalf of Lone Star Value Management. Shares purchased pursuant to the Agreement may only be purchased in accordance with trading requirements adopted by Lone Star Value Management, and there can be no assurance as to how many Shares, if any, will be purchased pursuant to the Agreement or at what price any such Shares will be purchased.
A copy of the Agreement is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Item 7. | Material to be Filed as Exhibits. |
Item 7 is hereby amended to add the following exhibit:
| 99.1 | Purchase Trading Plan Agreement between Lone Star Value Management, LLC and Williams Trading, LLC, dated March 17, 2016. |