SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
(Amendment No. 3)
Under the Securities Exchange Act of 1934*
Celebrate Express, Inc.
- --------------------------------------------------------------------------------
(Name of Issuer)
Common Stock, par value $0.001 per share
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(Title of Class of Securities)
15100A104
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(CUSIP Number)
Kenneth H. Shubin Stein, MD, CFA Stephen Roseman, CFA
Spencer Capital Management, LLC Thesis Capital Management, LLC
1995 Broadway, Suite 1801 60 E. 42nd St., Suite 1245
New York, NY 10023 The Lincoln Building
Telephone: (212) 586-4190 New York, NY 10165
Telephone: (212) 585-0100
- --------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
Copies to:
Michael A. Schwartz, Esq. John Olmstead, Esq.
Willkie Farr & Gallagher LLP Faust Rabbach & Oppenheim, LLP
787 Seventh Avenue 488 Madison Avenue, 10th Floor
New York, NY 10019-6099 New York, NY 10022
Telephone: (212) 728-8000 Telephone: (212) 751-7700
August 1, 2006
- --------------------------------------------------------------------------------
(Date of Event which Requires
Filing of this Schedule)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of ss.ss. 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the
following box: [ ]
NOTE: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See Rule 240.13d-7 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).
SCHEDULE 13D
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CUSIP No. 15100A104 Page 2 of 18 Pages
- ------------------------------------- ---------------------
- ----------- --------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Kenneth H. Shubin Stein, MD, CFA
- ----------- --------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
- ----------- --------------------------------------------------------------------
3 SEC USE ONLY
- ----------- --------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
- ----------- --------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ----------- --------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- --------------------- --------- ------------------------------------------------
7 SOLE VOTING POWER
0
--------- ------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 1,200,697
OWNED BY --------- ------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH 0
--------- ------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,200,697
- ----------- --------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
1,200,697
- ----------- --------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
- ----------- --------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
15.5%
- ----------- --------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- ----------- --------------------------------------------------------------------
SCHEDULE 13D
- ------------------------------------- ---------------------
CUSIP No. 15100A104 Page 3 of 18 Pages
- ------------------------------------- ---------------------
- ----------- --------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Spencer Capital Management, LLC
- ----------- --------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
- ----------- --------------------------------------------------------------------
3 SEC USE ONLY
- ----------- --------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
- ----------- --------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ----------- --------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------- --------- ------------------------------------------------
7 SOLE VOTING POWER
0
--------- ------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 1,200,697
OWNED BY --------- ------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH 0
--------- ------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,200,697
- ----------- --------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
1,200,697
- ----------- --------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
- ----------- --------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
15.5%
- ----------- --------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
- ----------- --------------------------------------------------------------------
SCHEDULE 13D
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CUSIP No. 15100A104 Page 4 of 18 Pages
- ------------------------------------- ---------------------
- ----------- --------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Spencer Capital Opportunity Fund, LP
- ----------- --------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
- ----------- --------------------------------------------------------------------
3 SEC USE ONLY
- ----------- --------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
- ----------- --------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ----------- --------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------- --------- ------------------------------------------------
7 SOLE VOTING POWER
0
--------- ------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 718,995
OWNED BY --------- ------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH 0
--------- ------------------------------------------------
10 SHARED DISPOSITIVE POWER
718,995
- ----------- --------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
718,995
- ----------- --------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
- ----------- --------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.3%
- ----------- --------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- ----------- --------------------------------------------------------------------
SCHEDULE 13D
- ------------------------------------- ---------------------
CUSIP No. 15100A104 Page 5 of 18 Pages
- ------------------------------------- ---------------------
- ----------- --------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Spencer Capital Partners, LLC
- ----------- --------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
- ----------- --------------------------------------------------------------------
3 SEC USE ONLY
- ----------- --------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
- ----------- --------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ----------- --------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------- --------- ------------------------------------------------
7 SOLE VOTING POWER
0
--------- ------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 718,995
OWNED BY --------- ------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH 0
--------- ------------------------------------------------
10 SHARED DISPOSITIVE POWER
718,995
- ----------- --------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
718,995
- ----------- --------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
- ----------- --------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.3%
- ----------- --------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
- ----------- --------------------------------------------------------------------
SCHEDULE 13D
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CUSIP No. 15100A104 Page 6 of 18 Pages
- ------------------------------------- ---------------------
- ----------- --------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Spencer Capital Offshore Opportunity Fund, Ltd.
- ----------- --------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
- ----------- --------------------------------------------------------------------
3 SEC USE ONLY
- ----------- --------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
- ----------- --------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ----------- --------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman Islands
- --------------------- --------- ------------------------------------------------
7 SOLE VOTING POWER
0
--------- ------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 481,702
OWNED BY --------- ------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH 0
--------- ------------------------------------------------
10 SHARED DISPOSITIVE POWER
481,702
- ----------- --------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
481,702
- ----------- --------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
- ----------- --------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
6.2%
- ----------- --------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
- ----------- --------------------------------------------------------------------
SCHEDULE 13D
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CUSIP No. 15100A104 Page 7 of 18 Pages
- ------------------------------------- ---------------------
- ----------- --------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Spencer Capital Offshore Partners, LLC
- ----------- --------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
- ----------- --------------------------------------------------------------------
3 SEC USE ONLY
- ----------- --------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
- ----------- --------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ----------- --------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------- --------- ------------------------------------------------
7 SOLE VOTING POWER
0
--------- ------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 481,702
OWNED BY --------- ------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH 0
--------- ------------------------------------------------
10 SHARED DISPOSITIVE POWER
481,702
- ----------- --------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
481,702
- ----------- --------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
- ----------- --------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
6.2%
- ----------- --------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
- ----------- --------------------------------------------------------------------
SCHEDULE 13D
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CUSIP No. 15100A104 Page 8 of 18 Pages
- ------------------------------------- ---------------------
- ----------- --------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Stephen Roseman, CFA
- ----------- --------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
- ----------- --------------------------------------------------------------------
3 SEC USE ONLY
- ----------- --------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
- ----------- --------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ----------- --------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Canada
- --------------------- --------- ------------------------------------------------
7 SOLE VOTING POWER
0
--------- ------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 271,199
OWNED BY --------- ------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH 0
--------- ------------------------------------------------
10 SHARED DISPOSITIVE POWER
271,199
- ----------- --------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
271,199
- ----------- --------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
- ----------- --------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.5%
- ----------- --------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- ----------- --------------------------------------------------------------------
SCHEDULE 13D
- ------------------------------------- ---------------------
CUSIP No. 15100A104 Page 9 of 18 Pages
- ------------------------------------- ---------------------
- ----------- --------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Thesis Capital Management, LLC
- ----------- --------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
- ----------- --------------------------------------------------------------------
3 SEC USE ONLY
- ----------- --------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
- ----------- --------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ----------- --------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------- --------- ------------------------------------------------
7 SOLE VOTING POWER
0
--------- ------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 271,199
OWNED BY --------- ------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH 0
--------- ------------------------------------------------
10 SHARED DISPOSITIVE POWER
271,199
- ----------- --------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
271,199
- ----------- --------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
- ----------- --------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.5%
- ----------- --------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IA, OO
- ----------- --------------------------------------------------------------------
SCHEDULE 13D
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CUSIP No. 15100A104 Page 10 of 18 Pages
- ------------------------------------- ---------------------
- ----------- --------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Thesis Capital, LP
- ----------- --------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
- ----------- --------------------------------------------------------------------
3 SEC USE ONLY
- ----------- --------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
- ----------- --------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ----------- --------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------- --------- ------------------------------------------------
7 SOLE VOTING POWER
0
--------- ------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 50,958
OWNED BY --------- ------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH 0
--------- ------------------------------------------------
10 SHARED DISPOSITIVE POWER
50,958
- ----------- --------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
50,958
- ----------- --------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
- ----------- --------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.7%
- ----------- --------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- ----------- --------------------------------------------------------------------
SCHEDULE 13D
- ------------------------------------- ---------------------
CUSIP No. 15100A104 Page 11 of 18 Pages
- ------------------------------------- ---------------------
- ----------- --------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Thesis Capital Master Fund Limited
- ----------- --------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
- ----------- --------------------------------------------------------------------
3 SEC USE ONLY
- ----------- --------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
- ----------- --------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ----------- --------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman Islands
- --------------------- --------- ------------------------------------------------
7 SOLE VOTING POWER
0
--------- ------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 220,241
OWNED BY --------- ------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH 0
--------- ------------------------------------------------
10 SHARED DISPOSITIVE POWER
220,241
- ----------- --------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
220,241
- ----------- --------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
- ----------- --------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.8%
- ----------- --------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
- ----------- --------------------------------------------------------------------
Item 1. Security and Issuer
This Amendment No. 3 to Schedule 13D (this "Amendment No. 3") is being
filed with respect to the beneficial ownership of common stock, par value $0.001
per share (the "Common Stock"), of Celebrate Express, Inc., a Washington
corporation (the "Company"), to amend the Schedule 13D filed on June 22, 2006
(the "Schedule 13D") as amended by Amendment No. 1 to Schedule 13D filed on June
27, 2006 (the "Amendment No. 1") and Amendment No. 2 to Schedule 13D filed on
July 6, 2006 (the "Amendment No. 2"). Capitalized terms used but not defined in
this Amendment No. 3 shall have the meanings ascribed thereto in the Schedule
13D as amended to the date hereof.
Item 3. Source and Amount of Funds or Other Consideration
Item 3 is hereby amended and restated by deleting the first two paragraphs of
the text thereof and replacing it with the following:
The Spencer Funds expended approximately $13,506,296.71 in order to
purchase the 1,200,697 shares of Common Stock beneficially owned by them. SCF
expended approximately $8,089,284.13 to purchase the 718,995 shares of Common
Stock beneficially owned by it. SCOF expended approximately $5,412,199.03 to
purchase the 481,702 shares of Common Stock beneficially owned by it. Each of
the Spencer Funds purchased the Common Stock directly owned by it with its
working capital, which may, at any given time, include margin loans made by
brokerage firms in the ordinary course of business.
TC expended approximately $566,074.03 and TCMF expended approximately
$2,433,340.84 in order to purchase their respective 50,958 and 220,241 shares of
Common Stock that they beneficially own. The Thesis Funds purchased the Common
Stock directly owned by them with their working capital, which may, at any given
time, include margin loans made by brokerage firms in the ordinary course of
business.
Item 4. Purpose of Transaction.
Item 4 of the Schedule 13D is hereby supplemented by adding thereto the
following:
Subsequent to the June 29, 2006 decision by the Filers to act together to
obtain representation on the Company's board of directors (the "Board"), the
Filers had conversations with members of the Board about the possibility that
one or both of Dr. Shubin Stein and Mr. Roseman might be added to the Board.
Because those discussions ended unsuccessfully from the Filers' perspective, the
Filers determined to nominate Dr. Shubin Stein, Mr. Roseman and Matthew C.
Diamond for election at the Company's 2006 annual meeting of stockholders (the
"Annual Meeting"), which the Filers expect will be held in October 2006.
Accordingly, the Filers formed The Celebrate Express Shareholder Value Committee
(the "Shareholder Value Committee") and pursuant to the Company's new bylaw
provision, which was adopted on July 7, 2006, gave notice of these nominations
to the Company on August 1, 2006.
Based on the Company's filings under the Exchange Act, the Filers believe
that the Board consists of seven directors, with one Board seat vacant. At the
Annual Meeting, the terms of two of the Company's directors will expire. In
addition, because Kevin Green was recently added to the Board to fill one of two
Board vacancies that existed at the time, Mr. Green will be required
12
to stand for re-election to the Board at the Annual Meeting in accordance with
the Washington Business Corporation Act and the Company's bylaws. If the Company
chooses to fill the remaining vacancy on the Board prior to or at the Annual
Meeting, or if additional directors are otherwise to be elected at the Annual
Meeting (whether by virtue of an expansion of the Board or otherwise), the
Filers intend to a nominate candidate for any such additional director to be
elected at the Annual Meeting.
* * * * * *
In connection with the upcoming Annual Meeting, the Filers and the
Shareholder Value Committee intend to file a proxy statement with the Securities
and Exchange Commission (the "SEC") to solicit stockholders of the Company with
respect to the election of directors. THE FILERS AND THE SHAREHOLDER VALUE
COMMITTEE STRONGLY ADVISE ALL STOCKHOLDERS OF THE COMPANY TO READ THE PROXY
STATEMENT WHEN IT BECOMES AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT
INFORMATION, INCLUDING INFORMATION RELATING TO THE PARTICIPANTS IN ANY SUCH
PROXY SOLICITATION. SUCH PROXY STATEMENT, WHEN FILED, AND ANY OTHER RELEVANT
DOCUMENTS WILL BE AVAILABLE AT NO CHARGE ON THE SEC'S WEBSITE AT
HTTP://WWW.SEC.GOV.
SPENCER CAPITAL PARTICIPANT INFORMATION
In accordance with Rule 14a-12(a)(1)(i) of the Securities Exchange Act of
1934, as amended ("Exchange Act"), the following persons are anticipated to be,
or may be deemed to be, participants in any such proxy solicitation in
connection with the Annual Meeting: Spencer Capital Management, LLC, a Delaware
limited liability company ("SCM"); Spencer Capital Opportunity Fund, LP, a
Delaware limited partnership ("SCF"); Spencer Capital Partners, LLC, a Delaware
limited liability company ("SCP"); Spencer Capital Offshore Opportunity Fund,
Ltd., a Cayman Islands exempted company ("SCOF"); Spencer Capital Offshore
Partners, LLC, a Delaware limited liability company ("SCOP"); and Kenneth H.
Shubin Stein, MD, CFA ("Dr. Shubin Stein"). Certain of these persons hold direct
or indirect interests as follows: Dr. Shubin Stein may be deemed to have
beneficial ownership over 1,200,697 shares of the Company's common stock
("Common Stock"); SCM may be deemed to have beneficial ownership over 1,200,697
shares of Common Stock; SCF owns 718,995 shares of Common Stock; SCP may be
deemed to have beneficial ownership over 718,995 shares of the Common Stock;
SCOF owns 481,702 shares of Common Stock; and SCOP may be deemed to have
beneficial ownership over 481,702 shares of Common Stock.
THESIS CAPITAL PARTICIPANT INFORMATION
In accordance with Rule 14a-12(a)(1)(i) of the Exchange Act, the following
persons also are anticipated to be, or may be deemed to be, participants in any
such proxy solicitation in connection with the Annual Meeting: Thesis Capital
Management, LLC, a Delaware limited liability company ("TCM"); Thesis Capital,
LP, a Delaware limited partnership ("TC"); Thesis Capital Master Fund Limited, a
Cayman Islands exempted company ("TCMF"); and Stephen Roseman, CFA, an
individual ("Mr. Roseman"). Certain of these persons hold direct or indirect
interests as follows: Mr. Roseman may be deemed to have beneficial ownership
over 271,199 shares of Common Stock; TCM may be deemed to have beneficial
ownership over 271,199 shares of Common Stock; TC owns 50,958 shares of Common
Stock; and TCMF owns 220,241 shares of Common Stock.
13
COMMITTEE PARTICIPANT INFORMATION
In accordance with Rule 14a-12(a)(1)(i) of the Exchange Act, the
Shareholder Value Committee and the following members of the Shareholder Value
Committee are anticipated to be, or may be deemed to be, participants in any
such proxy solicitation in connection with the Annual Meeting: Dr. Shubin Stein;
Mr. Roseman; and Mr. Diamond. Except as described above, neither the Shareholder
Value Committee nor the foregoing members of the Shareholder Value Committee
have any direct or indirect interests, by security holdings or otherwise,
required to be disclosed herein, except each such member's interest in being
nominated and elected as a director of the Company.
Item 5. Interest in Securities of the Issuer.
Items 5(a), 5(b) and 5(c) are hereby amended and restated by deleting the
entirety of the text thereof and replacing it with the following:
(a) As of the close of business on July 5, 2006: (i) Dr. Shubin Stein was
the beneficial owner of the 1,200,697 shares of Common Stock that are held
directly by the Spencer Funds, which constitute in the aggregate 15.5% of the
outstanding shares of Common Stock; (ii) SCM was the beneficial owner of
1,200,697 shares of Common Stock, which constitute in the aggregate 15.5% of the
outstanding shares of Common Stock; (iii) SCF and SCP were the beneficial owners
of 718,995 shares of Common Stock, which constitute in the aggregate 9.3% of the
outstanding shares of Common Stock; (iv) SCOF and SCOP were the beneficial
owners of 481,702 shares of Common Stock, which constitute in the aggregate 6.2%
of the outstanding shares of Common Stock; (v) Mr. Roseman may be deemed to be
the beneficial owner of 271,199 shares of Common Stock that are held directly by
the Thesis Funds, which constitute in the aggregate 3.5% of the outstanding
shares of Common Stock although he disclaims such beneficial ownership; (vi) TCM
was the beneficial owner of 271,199 shares of Common Stock that are held
directly by the Thesis Funds, which constitute in the aggregate 3.5% of the
outstanding shares of Common Stock; (vii) TC was the beneficial owner of 50,958
shares of Common Stock that it directly owns, which constitute in the aggregate
0.7% of the outstanding shares of Common Stock; and (viii) TCMF was the
beneficial owner of 220,241 shares of Common Stock that it directly owns, which
constitute in the aggregate 2.8% of the outstanding shares of Common Stock.
The percentages of the outstanding Common Stock set forth in this Amendment
No. 3 were calculated on the basis that 7,759,821 shares of Common Stock were
outstanding as of March 31, 2006, as represented by the Company in its Quarterly
Report on Form 10-Q filed with the SEC on April 13, 2006.
(b) Dr. Shubin Stein shares voting and dispositive power over the 1,200,697
shares of Common Stock held directly by the Spencer Funds with SCM, SCF, SCP,
SCOF and SCOP. SCM shares voting and dispositive power over 1,200,697 shares of
Common Stock with Dr. Shubin Stein, SCF, SCP, SCOF and SCOP. SCF and SCP share
voting and dispositive power over 718,995 shares of Common Stock with Dr. Shubin
Stein, SCM and each other. SCOF and SCOP share voting and dispositive power over
481,702 shares of Common Stock with Dr. Shubin Stein, SCM and each other.
14
Mr. Roseman shares voting and dispositive power over the 271,199 shares of
Common Stock held directly by the Thesis Funds with TCM, TC and TCMF. TCM shares
voting and dispositive power over the 271,199 shares of Common Stock with Mr.
Roseman, TC and TCMF. TC shares voting and dispositive power over 50,958 shares
of Common Stock with Mr. Roseman and TCM. TCMF shares voting and dispositive
power over 220,241 shares of Common Stock with Mr. Roseman and TCM.
As a result of their determination to work together as disclosed in Item 4
above, the Spencer Capital Members and Thesis Capital Members may be deemed a
"group" under the Exchange Act and, accordingly, each may be deemed to
beneficially own the shares of the Common Stock beneficially owned by the
others. Each of the Spencer Capital Members disclaims beneficial ownership of
the Common Stock held by the Thesis Capital Members and any pecuniary interest
therein, and each of the Thesis Capital Members disclaims beneficial ownership
of the Common Stock held by each of the Spencer Capital Members and any
pecuniary interest therein.
(c) Transactions in the Common Stock by the Spencer Capital Members
effected since the filing of Amendment No. 2 to Schedule 13D are described in
Schedule I hereto, which Schedule is hereby incorporated by reference.
Transactions in the Common Stock by the Thesis Capital Members effected since
the filing of Amendment No. 2 to Schedule 13D are described in Schedule I
hereto, which Schedule is hereby incorporated by reference. All such
transactions were effected on the open market.
(d) Not applicable.
(e) Not applicable.
15
SIGNATURES
After reasonable inquiry and to the best of our knowledge and belief, the
undersigned certify that the information set forth in this statement is true,
complete and correct.
Dated: August 2, 2006
SPENCER CAPITAL MANAGEMENT, LLC
By: /s/ Kenneth H. Shubin Stein, MD, CFA
----------------------------------------
Name: Kenneth H. Shubin Stein, MD, CFA
Title: Authorized Signatory
SPENCER CAPITAL OPPORTUNITY FUND, LP
By: Spencer Capital Partners, LLC,
Its General Partner
By: /s/ Kenneth H. Shubin Stein, MD, CFA
----------------------------------------
Name: Kenneth H. Shubin Stein, MD, CFA
Title: Managing Member
SPENCER CAPITAL PARTNERS, LLC
By: /s/ Kenneth H. Shubin Stein, MD, CFA
----------------------------------------
Name: Kenneth H. Shubin Stein, MD, CFA
Title: Managing Member
[SIGNATURE PAGE TO AMENDMENT NO. 3 TO SCHEDULE 13D
WITH RESPECT TO CELEBRATE EXPRESS, INC.]
SPENCER CAPITAL OFFSHORE OPPORTUNITY FUND, LTD.
By: Spencer Capital Offshore Partners, LLC,
Its Investment Advisor
By: /s/ Kenneth H. Shubin Stein, MD, CFA
----------------------------------------
Name: Kenneth H. Shubin Stein, MD, CFA
Title: Managing Member
SPENCER CAPITAL OFFSHORE PARTNERS, LLC
By: /s/ Kenneth H. Shubin Stein, MD, CFA
----------------------------------------
Name: Kenneth H. Shubin Stein, MD, CFA
Title: Managing Member
By: /s/ Kenneth H. Shubin Stein, MD, CFA
----------------------------------------
Kenneth H. Shubin Stein, MD, CFA
THESIS CAPITAL MANAGEMENT, LLC
By: /s/ Stephen Roseman, CFA
----------------------------------------
Name: Stephen Roseman, CFA
Title: Manager
[SIGNATURE PAGE TO AMENDMENT NO. 3 TO SCHEDULE 13D
WITH RESPECT TO CELEBRATE EXPRESS, INC.]
THESIS CAPITAL, LP
By: Thesis Capital Advisors, LLC,
Its General Partner
By: /s/ Stephen Roseman, CFA
----------------------------------------
Name: Stephen Roseman, CFA
Title: Manager
THESIS CAPITAL MASTER FUND LIMITED
By: /s/ Stephen Roseman, CFA
----------------------------------------
Name: Stephen Roseman, CFA
Title: Director
By: /s/ Stephen Roseman, CFA
----------------------------------------
Stephen Roseman, CFA
[SIGNATURE PAGE TO AMENDMENT NO. 3 TO SCHEDULE 13D
WITH RESPECT TO CELEBRATE EXPRESS, INC.]
SCHEDULE I
Schedule of Transactions by SCM
-------------------------------
Each of the following trades was effected on behalf of the Spencer Funds by
SCM. The entire amount purchased in each trade was allocated to SCF.
- --------------------------- ------------------ --------------------- -----------
Type of Date Number of Price per Share in
Transaction Shares $US*
- ------------------- --------------- ---------------- ------------------------
Purchase 7/5/06 100 $12.38
- ------------------- --------------- ---------------- ------------------------
Purchase 7/5/06 1,100 $12.40
- ------------------- --------------- ---------------- ------------------------
Purchase 7/5/06 100 $12.40
- ------------------- --------------- ---------------- ------------------------
Purchase 7/5/06 200 $12.50
- ------------------- --------------- ---------------- ------------------------
Purchase 7/5/06 1,300 $12.47
- ------------------- --------------- ---------------- ------------------------
Purchase 7/5/06 200 $12.47
- ------------------- --------------- ---------------- ------------------------
Purchase 7/5/06 1,200 $12.50
- ------------------- --------------- ---------------- ------------------------
Purchase 7/5/06 300 $12.47
- ------------------- --------------- ---------------- ------------------------
Purchase 7/5/06 700 $12.48
- ------------------- --------------- ---------------- ------------------------
Purchase 7/5/06 100 $12.47
- ------------------- --------------- ---------------- ------------------------
Purchase 7/5/06 1,120 $12.45
- ------------------- --------------- ---------------- ------------------------
Purchase 7/5/06 100 $12.47
- ------------------- --------------- ---------------- ------------------------
Purchase 7/5/06 800 $12.40
- ------------------- --------------- ---------------- ------------------------
Purchase 7/5/06 100 $12.38
- ------------------- --------------- ---------------- ------------------------
Purchase 7/5/06 100 $12.39
- ------------------- --------------- ---------------- ------------------------
Purchase 7/6/06 100 $12.22
- ------------------- --------------- ---------------- ------------------------
Purchase 7/6/06 1,100 $12.24
- ------------------- --------------- ---------------- ------------------------
Purchase 7/6/06 550 $12.26
- ------------------- --------------- ---------------- ------------------------
Purchase 7/6/06 700 $12.42
- ------------------- --------------- ---------------- ------------------------
Purchase 7/6/06 100 $12.48
- ------------------- --------------- ---------------- ------------------------
Purchase 7/6/06 100 $12.48
- ------------------- --------------- ---------------- ------------------------
Purchase 7/6/06 400 $12.48
- ------------------- --------------- ---------------- ------------------------
Purchase 7/6/06 100 $12.48
- ------------------- --------------- ---------------- ------------------------
Purchase 7/6/06 100 $12.48
- ------------------- --------------- ---------------- ------------------------
Purchase 7/6/06 200 $12.55
- ------------------- --------------- ---------------- ------------------------
* Excludes brokerage commissions.
1
Transactions by Thesis Funds
----------------------------
Each of the following trades was effected by the Thesis Funds.
- --------------------------- ------------------ --------------------- -----------
Type of Date Number of Price per Share in
Transaction Shares $US*
- ------------------- --------------- ---------------- ------------------------
Purchase 7/25/06 3,900.00 $12.31
- ------------------- --------------- ---------------- ------------------------
Purchase 7/26/06 6,500.00 $12.08
- ------------------- --------------- ---------------- ------------------------
2