As filed with the Securities and Exchange Commission on May 9, 2001
REGISTRATION NO. 333-[ ]
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM S-3
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
XYBERNAUT CORPORATION
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(Exact name of registrant as specified in its charter)
DELAWARE 54-1799851
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(State or other jurisdiction of (I.R.S. Employer
Incorporation or organization) Identification No.)
12701 FAIR LAKES CIRCLE
FAIRFAX, VIRGINIA 22033
(703) 631-6925
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(Address, including zip code, and telephone number, Including
area code, of registrant's principal executive offices)
EDWARD G. NEWMAN
12701 FAIR LAKES CIRCLE
FAIRFAX, VIRGINIA 22033
(703) 631-6925
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(Name, address, including zip code, and telephone number,
Including area code, of agent for service)
Copy to:
Martin Eric Weisberg, Esq.
Jenkens & Gilchrist Parker Chapin LLP
The Chrysler Building
405 Lexington Avenue
New York, New York 10174
(212) 704-6000
APPROXIMATE DATE OF COMMENCEMENT OF PROPOSED SALE TO PUBLIC: As soon as
practicable after the effective date of this Registration Statement.
If the only securities on this Form are being offered pursuant to
dividend or interest reinvestment plans, please check the following box. |_|
If any of the securities being registered on this Form are to be
offered on a delayed or continuous basis pursuant to Rule 415 under the
Securities Act of 1933, other than securities offered only in connection with
dividend or interest reinvestment plans, check the following box. |X|
If this Form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, please check the following box
and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering. |_|
If this Form is a post-effective amendment filed pursuant to Rule
462(c) under the Securities Act, check the following box and list the Securities
Act registration statement number of the earlier effective registration
statement for the same offering. |_| __________
If delivery of the prospectus is expected to be made pursuant to Rule
434, please check the following box. |_|
CALCULATION OF REGISTRATION FEE
- --------------------------------------------- ------------------- ------------------- ----------------- ---------------
PROPOSED
TITLE OF EACH CLASS AMOUNT TO BE PROPOSED MAXIMUM MAXIMUM AMOUNT OF
OF SECURITIES TO BE REGISTERED REGISTERED(1) OFFERING PRICE AGGREGATE REGISTRATION
PER SHARE OFFERING PRICE FEE
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Common Stock, $.01 par value per share.. 5,238,094 (2) $ 3.115 (4) $ 16,316,663 $ 4,079.17
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Common Stock, $.01 par value per share.. 1,616,427 (2)(3) $ 5.000 (5) $ 8,082,135 $ 2,020.53
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Total Registration Fee.................. $ 6,099.70
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(1) Represents the shares of common stock being registered for resale by the
selling stockholders.
(2) Pursuant to Rule 416, the shares of common stock offered hereby also
include such presently indeterminate number of shares of common stock as
shall be issued by us to the selling stockholders upon adjustment under
anti-dilution provisions covering the additional issuance of shares by
Xybernaut resulting from stock splits, stock dividends or similar
transactions.
(3) Represents the number of shares of common stock issuable upon exercise of
warrants to purchase shares of our common stock.
(4) Estimated solely for the purpose of calculating the registration fee
pursuant to Rule 457(c) and (g) of the Securities Act of 1933, as amended
(the "Securities Act"); based on the average ($3.115) of the bid ($3.090)
and asked ($3.140) price on the Nasdaq National Market on May 3, 2001.
(5) Estimated solely for the purpose of calculating the registration fee
pursuant to Rule 457(g) of the Securities Act, based on the higher of (a)
the exercise price of the warrants or (b) the offering price of securities
of the same class included in this registration statement.
THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE OR DATES
AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT SHALL FILE
A FURTHER AMENDMENT WHICH SPECIFICALLY STATES THAT THIS REGISTRATION STATEMENT
SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH SECTION 8(A) OF THE
SECURITIES ACT OF 1933 OR UNTIL THIS REGISTRATION STATEMENT SHALL BECOME
EFFECTIVE ON SUCH DATE AS THE COMMISSION, ACTING PURSUANT TO SECTION 8(A), MAY
DETERMINE.
The information in this prospectus is not complete and may be changed. These
securities may not be sold until the registration statement filed with the
Securities and Exchange Commission is effective. This prospectus is not an offer
to sell nor is it seeking an offer to buy these securities in any state where
the offer or sale is not permitted.
SUBJECT TO COMPLETION, DATED MAY 9, 2001
PROSPECTUS
XYBERNAUT CORPORATION
6,854,521 SHARES OF COMMON STOCK
The selling stockholders of Xybernaut Corporation listed on page 8 of this
prospectus are offering for sale up to 6,854,521 shares of common stock of
Xybernaut under this prospectus.
The selling stockholders may offer their shares through public or private
transactions, at prevailing market prices, or at privately negotiated prices.
See "Plan of Distribution."
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NASDAQ National Market Symbol: "XYBR"
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On May 3, 2001, the closing price of one share of our common stock on the
NASDAQ National Market was $3.14.
THIS INVESTMENT INVOLVES A HIGH DEGREE OF RISK. YOU SHOULD CAREFULLY
CONSIDER THE FACTORS DESCRIBED UNDER THE CAPTION "RISK FACTORS" BEGINNING
ON PAGE 2 OF THIS PROSPECTUS.
NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES
COMMISSION HAS APPROVED OR DISAPPROVED THESE SECURITIES OR DETERMINED IF
THIS PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY
IS A CRIMINAL OFFENSE.
The date of this prospectus is _________________, 2001
RISK FACTORS
BEFORE YOU BUY SHARES OF OUR COMMON STOCK, YOU SHOULD BE AWARE THAT
THERE ARE VARIOUS RISKS ASSOCIATED WITH THAT PURCHASE, INCLUDING THOSE DESCRIBED
BELOW. YOU SHOULD CONSIDER CAREFULLY THESE RISK FACTORS, TOGETHER WITH ALL OF
THE OTHER INFORMATION IN THIS PROSPECTUS AND THE DOCUMENTS WE HAVE INCORPORATED
BY REFERENCE IN THE SECTION "WHERE YOU CAN FIND MORE INFORMATION ABOUT US,"
BEFORE YOU DECIDE TO PURCHASE SHARES OF OUR COMMON STOCK.
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RISKS ASSOCIATED WITH OUR HISTORY OF LOSSES AND FUTURE NEED FOR CAPITAL
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WE HAVE A HISTORY OF LOSSES AND, IF WE DO NOT ACHIEVE PROFITABILITY, WE MAY NOT
BE ABLE TO CONTINUE OUR BUSINESS IN THE FUTURE.
Our research, development, sales, marketing and general and
administrative expenses have resulted in significant losses and are expected to
continue to result in significant losses for the foreseeable future. We have
incurred the following losses since 1996:
Fiscal years ended:
o December 31, 1996 $5,298,633
o December 31, 1997 $10,051,757
o December 31, 1998 $13,001,338
o December 31, 1999 $16,697,413
o December 31, 2000 $24,185,222
WE COULD BE REQUIRED TO CUT BACK OR STOP OPERATIONS IF WE ARE UNABLE TO RAISE OR
OBTAIN NEEDED FINANCING.
The research, development, commercialization, manufacturing and
marketing of our products will likely require financial resources which are
significantly in excess of those presently available to us. If we are not able
to arrange financing or other third party arrangements on acceptable terms, we
may be unable to fully develop and commercialize any of our products and could
be required to cut back or stop operations.
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RISKS ASSOCIATED WITH THE INDUSTRY IN WHICH WE OPERATE
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OUR FUTURE REVENUES AND ABILITY TO PRODUCE NEW PRODUCTS DEPEND SUBSTANTIALLY ON
THE SUCCESS OF THE MOBILE ASSISTANT(R) SERIES.
The Mobile Assistant series is our principal product, and our success
will depend to a large extent upon its commercial acceptance, which cannot be
assured. We have signed an agreement with IBM to design, develop and manufacture
the computer portion of Xybernaut's next generation of wearable computer systems
and we are introducing new models of the MA(R) IV. Additional product
development will result in a significant increase in our research and
development expenses that may be unrecoverable should commercialization of new
products prove unsuccessful. We also could require additional funding if
research and development expenses are greater than we anticipate. As with most
high technology products, new models of the Mobile Assistant series must be
introduced periodically for our company to remain competitive. There can be no
assurance that these new models can be successfully developed or will be
commercially accepted.
WE MAY HAVE TO LOWER PRICES OR SPEND MORE MONEY TO EFFECTIVELY COMPETE AGAINST
COMPANIES WITH GREATER RESOURCES THAN US, WHICH COULD RESULT IN LOWER REVENUES
AND/OR PROFITS.
The success of our products in the marketplace depends on many factors,
including product performance, price, ease of use, support of industry
standards, competing technologies and customer support and service. Given these
factors we cannot assure you that we will be able to compete successfully. For
example, if our competitors offer lower prices, we could be forced to lower
prices which could result in reduced or negative margins and a decrease in
revenues. If we do not lower prices we could lose sales and market share. In
either case, if we are unable to compete against our main competitors which
include established companies like Computing Devices International, a division
of Ceridian Corporation, ViA Inc., Texas Microsystems, Telxon, Symbol, Norand,
Raytheon, and others, we would not be able to generate sufficient revenues to
grow our company or reverse our history of losses.
In addition, we may have to spend more money to effectively compete for
market share, including funds to expand our infrastructure, which is a capital
and time intensive process. Further, if other companies choose to aggressively
compete against us, we may have to reduce our prices and spend more money on
advertising, promotion, trade shows, product development, marketing and overhead
expenses, hiring and retaining personnel, and developing new technologies. These
lower prices and higher expenses would adversely affect our net income.
CURRENCY FLUCTUATIONS, ESPECIALLY IN THE JAPANESE YEN AND GERMAN MARK, MAY
SIGNIFICANTLY INCREASE OUR EXPENSES AND AFFECT OUR RESULTS OF OPERATIONS.
The exchange rates for some local currencies in countries where we
operate may fluctuate in relation to the U.S. dollar. Such fluctuations may have
an adverse effect on our competitive position as well as our expenses, revenues,
earnings, assets or liabilities when local currencies are translated
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into U.S. dollars. We have significant operations in Asia, in particular Japan,
and Europe, in particular Germany. Also, we are party to supplier arrangements
with several companies in Japan and Europe for the production of the Mobile
Assistant series. Our foreign operations, including payments to our suppliers,
are typically funded in the local currencies. Any changes in the value of the
U.S. dollar against these currencies could result in an increase in our reported
expenses or inventory costs or a decrease in our reported revenues which, if
substantial, could have a material adverse effect on our financial condition and
results of operations.
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RISK ASSOCIATED WITH
OUR INTERNAL OPERATIONS AND POLICIES
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SINCE WE DO NOT INTEND TO DECLARE DIVIDENDS IN THE FORESEEABLE FUTURE, THE
RETURN ON YOUR INVESTMENT WILL DEPEND UPON APPRECIATION OF THE MARKET PRICE OF
YOUR SHARES.
We have never paid any dividends on our common stock. Our board of
directors does not intend to declare any dividends in the foreseeable future,
but intends to retain all earnings, if any, for use in our business operations.
As a result, the return on your investment in Xybernaut will depend upon any
appreciation in the market price of the common stock. The holders of common
stock are entitled to receive dividends when, as and if declared by the board of
directors out of funds legally available for dividend payments. The payment of
dividends, if any, in the future is within the discretion of our board of
directors and will depend upon our earnings, capital requirements and financial
condition, and other relevant factors.
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RISKS WHICH MAY DILUTE THE VALUE OF YOUR XYBERNAUT
SHARES OR LIMIT THE EFFECT OF THEIR VOTING POWER
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THE PRICE OF OUR COMMON STOCK IS HIGHLY VOLATILE.
The price of our common stock is highly volatile. During the period
from January 1, 2000 to May 8, 2001 the closing price of our common stock has
ranged from a high of $23.75 to a low of $1.22. Following periods of volatility
in the market price of a company's securities, securities class action
litigation has often been instituted against such a company. If similar
litigation were instituted against us, it could result in substantial costs and
a diversion of our management's attention and resources, which could have an
adverse effect on our business. The volatile fluctuations of the market price
are based on (1) the number of shares in the market at the time as well as the
number of shares we may be required to issue in the future, compared to the
market demand for our shares; (2) our performance and meeting expectations of
our performance, including the development and commercialization of our products
and proposed products; (3) market conditions for technology companies in the
small capitalization sector; and (4) general economic and market conditions.
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OUR EXECUTIVE OFFICERS, DIRECTORS AND PRINCIPAL STOCKHOLDERS, TOGETHER, MAY
EXERCISE CONTROL OVER ALL MATTERS SUBMITTED TO A VOTE OF STOCKHOLDERS.
As of April 25, 2001, our executive officers, directors and principal
stockholders beneficially owned, in the aggregate, approximately 12.6% of our
outstanding shares of common stock. These stockholders, if acting together, may
be able to effectively control most matters requiring approval by our
stockholders. The voting power of these stockholders under certain circumstances
could have the effect of delaying or preventing a change in control of
Xybernaut.
WE HAVE 12,352,169 SHARES OF OUR COMMON STOCK RESERVED FOR FUTURE ISSUANCES
WHICH CAN SUBSTANTIALLY DILUTE THE VALUE OF YOUR XYBERNAUT COMMON STOCK.
The issuance of reserved shares would dilute the equity interest of
existing stockholders and could have a significant adverse effect on the market
price of our common stock. As of May 8, 2001, we had 12,352,169 shares of common
stock reserved for possible future issuances upon conversion of outstanding
options and warrants. These options and warrants are convertible into or
exercisable for shares of common stock at prices that may represent discounts
from future market prices of the common stock. The exercise of these options or
warrants could result in substantial dilution to existing holders of common
stock. The sale of the common stock acquired at a discount could have a negative
impact on the trading price of the common stock and could increase the
volatility in the trading price of the common stock. See the section entitled
"Dilution" for a summary of the number of shares which could be issued upon
conversion of the outstanding preferred stock at various market prices.
In addition, we may seek additional financing which may result in the
issuance of additional shares of our capital stock and/or rights to acquire
additional shares of our capital stock. Those additional issuances of capital
would result in a reduction of your percentage interest in Xybernaut.
ANTI-TAKEOVER MEASURES IN OUR CERTIFICATE OF INCORPORATION COULD ADVERSELY
AFFECT THE VOTING POWER OF THE HOLDERS OF THE COMMON STOCK.
Our certificate of incorporation authorizes anti-takeover measures such
as the authority to issue "blank check" preferred stock and the staggered terms
of the members of our board of directors. Those measures could have the effect
of delaying, deterring or preventing a change in control without any action by
our stockholders. In addition, issuance of preferred stock, without stockholder
approval, on those terms as the board of directors may determine, could
adversely affect the voting power of the holders of the common stock, including
the loss of voting control to others. See "Description of Securities."
INFORMATION REGARDING FORWARD-LOOKING STATEMENTS
This prospectus contains certain forward-looking statements which
involve substantial risks and uncertainties. These forward-looking statements
can generally be identified because the context of the statement includes words
such as "may," "will," "except," "anticipate," "intend," "estimate," "continue,"
"believe," or other similar words. Similarly, statements that describe our
future plans, objectives and goals are also forward-looking statements. Our
factual results, performance or achievements could differ materially from those
expressed or implied in these forward-looking
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statements as a result of certain factors, including those listed in "Risk
Factors" and elsewhere in this prospectus.
WHERE YOU CAN FIND MORE INFORMATION ABOUT US
We file annual, quarterly and special reports, proxy statements and
other information with the SEC. You may read and copy any document we file at
the SEC's public reference rooms in Washington, D.C., New York, New York and
Chicago, Illinois. Please call the SEC at 1-800-SEC-0330 for further information
on the public reference rooms. Our SEC filings are also available to the public
over the Internet at the SEC's Website at "http://www.sec.gov."
We have filed with the SEC a registration statement on Form S-3 to
register the shares being offered. This prospectus is part of that registration
statement and, as permitted by the SEC's rules, does not contain all the
information included in the registration statement. For further information with
respect to us and our common stock, you should refer to the registration
statement and to the exhibits and schedules filed as part of the registration
statement, as well as the documents discussed below.
The SEC allows us to "incorporate by reference" the information we file
with them, which means that we can disclose important information to you by
referring you to those documents. The information incorporated by reference is
an important part of this prospectus, and information that we file later with
the SEC will automatically update or supersede this information.
This prospectus may contain summaries of contracts or other documents.
Because they are summaries, they will not contain all of the information that
may be important to you. If you would like complete information about a contract
or other document, you should read the copy filed as an exhibit to the
registration statement or incorporated in the registration statement by
reference.
We incorporate by reference the documents listed below and any future
filings we will make with the SEC under Sections 13(a), 13(c), 14 or 15(d) of
the Securities Exchange Act of 1934 (File No. 0-19041) until all of the shares
are sold:
o Annual Report on Form 10-K, as amended by Form 10-K/A, for the
fiscal year ended December 31, 2000; and
o The description of our common stock contained in the
registration statement on Form 8-A filed on July 15, 1996
under the Exchange Act (File No. 0-15086), including all
amendments or reports filed for the purpose of updating that
description.
You may request a copy of these filings, at no cost, by writing to us
at 12701 Fair Lakes Circle, Suite 550, Fairfax, Virginia 22033, (703) 631-6925,
Attention: John F. Moynahan or by e-mail at investorrelations@xybernaut.com.
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You can review and copy the registration statement, its exhibits and
schedules, as well as the documents listed below, at the public reference
facilities maintained by the SEC as described above. The registration statement,
including its exhibits and schedules, are also available on the SEC's web site.
USE OF PROCEEDS
The selling stockholders are selling all of the shares covered by this
prospectus for their own accounts. Accordingly, we will not receive any proceeds
from the resale of the shares.
We will receive proceeds, if any, from the exercise of warrants. We
will use those proceeds, if any, for working capital and general corporate
purposes.
We will bear the expenses relating to this registration, other than
discounts and commissions, which will be paid by the selling stockholder.
DILUTION
As of May 8, 2001, we had issued and outstanding 50,851,292 shares of
common stock. At that date, there were an additional 12,352,169 shares of common
stock reserved for possible future issuances as follows:
o options to purchase 5,142,777 shares at an exercise price
between $1.21 and $23.38 per share. We have registered the
shares issuable upon exercise of the options under the
Securities Act;
o warrants to purchase 4,714,893 shares at a price between $2.00
and $18.00 per share. Of the 4,714,893 shares, we have
previously registered a total of 2,730,966 shares issuable
upon exercise of these warrants. This prospectus covers an
additional 1,616,427 shares of common stock issuable upon
exercise of warrants, which shares will be freely tradable
without restriction (subject to prospectus delivery
requirements) on the effective date of the registration
statement. The remaining 367,500 shares will be deemed to be
"restricted securities" when issued; and
o 2,494,499 shares issuable upon exercise of options under the
Company's stock incentive plans which have not been granted as
of May 8, 2001. We have registered the shares issuable upon
exercise of the options.
The shares which will be deemed "restricted securities" may be sold
under Rule 144. Rule 144 permits sales of "restricted securities" by any person,
whether or not an affiliate of the issuer, after a one year holding period. At
that time, sales can be made subject to the Rule's volume and other limitations
and after two years by non-affiliates without adhering to Rule 144's volume or
other limitations. In general, an "affiliate" is a person with the power to
manage and direct our policies. The SEC has stated that, generally, executive
officers and directors of an entity are deemed affiliates of the issuing entity.
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SELLING STOCKHOLDERS
This prospectus covers the resale by the selling stockholders of up to
6,854,521 shares of our common stock.
The following table lists the selling stockholders and certain
information regarding the ownership by such selling stockholders of shares of
our common stock as of May 8, 2001, and as adjusted to reflect the sale of the
shares. Information concerning the selling stockholders, their pledgees, donees
and other non-sale transferees who may become selling stockholders may change
from time to time. To the extent the selling stockholders or any of their
representatives advise us of such changes, we will report those changes in a
prospectus supplement to the extent required. See "Plan of Distribution."
The registration of the following shares through this registration
statement allows the following entities to sell their share holdings in the
future on the open market and is not necessarily an indication of intent to sell
the shares.
Percentage Shares of Common
of Common Stock Owned
Shares of Common Stock Owned Shares of Common after Offering (1)(2)
Stock Owned Prior to Prior to Stock to be Sold ---------------------
Offering the Offering (1) Number Percent
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Archway Holdings Limited 3,590,475 (3) 6.9% 3,590,475 (3) 0 -
Cranshire Capital, L.P. 2,057,409 (9) 4.0% 1,423,809 (4) 633,600 1.2%
Euram Cap Strat. "A" Fund Limited 337,019 (10) * 247,619 (5) 89,400 *
The dotCom Fund, LLC 214,805 (11) * 185,714 (6) 29,091 *
Alpha Capital Aktiengesellschaft 1,238,095 (7) 2.4% 1,238,095 (7) 0 -
Vertical Ventures, LLC 423,809 (12) * 123,809 (8) 300,000 *
Atlas Capital Services, Inc. 45,000 (13) * 45,000 (13) 0 -
* Less than 1%
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(1) Assumes that the selling stockholders will exercise all of their warrants, if any, into common stock.
(2) Assumes all of the securities offered hereby will be sold by the selling stockholders.
(3) Includes 828,571 shares of common stock issuable upon exercise of warrants.
(4) Includes 328,571 shares of common stock issuable upon exercise of warrants.
(5) Includes 57,143 shares of common stock issuable upon exercise of warrants.
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(6) Includes 42,857 shares of common stock issuable upon exercise of warrants.
(7) Includes 285,714 shares of common stock issuable upon exercise of warrants.
(8) Includes 28,571 shares of common stock issuable upon exercise of warrants.
(9) Includes 428,571 shares of common stock issuable upon exercise of warrants.
(10) Includes 77,143 shares of common stock issuable upon exercise of warrants.
(11) Includes 50,130 shares of common stock issuable upon exercise of warrants.
(12) Includes 328,571 shares of common stock issuable upon exercise of warrants.
(13) Represents shares of common stock issuable upon exercise of warrants.
The common stock has the material rights and obligations discussed
below and under the section entitled "Description of Securities." We have filed
the agreements relating to these rights and obligations with the SEC. We urge
you to read them in their entirety.
Archway Holdings Limited acquired its shares of common stock in a
private placement transaction entered into on April 19, 2001. Under the terms of
the common stock and warrant purchase agreement between Archway Holdings Limited
and us, we agreed to sell 2,761,904 shares of our common stock at a weighted
price of $1.81 per share, for gross proceeds of $5,000,000. We also issued
warrants to purchase 828,571 shares of our common stock at $5.00 per share. The
warrants are exercisable for a period of 5 years from the date of issuance. In
connection with our sale of common stock pursuant to the common stock and
warrant purchase agreement, we entered into a registration rights agreement
pursuant to which, among other things, we agreed to use our best efforts to (i)
file a registration statement to register for resale the shares of common stock,
including the shares of common stock issuable upon exercise of the warrants, no
later than thirty days after the closing date and (ii) cause such registration
statement to become effective no later than sixty days after the closing date.
Cranshire Capital, L.P., Euram Cap Strat. "A" Fund Limited and The
dotCom Fund, LLC acquired their shares of common stock in a private placement
transaction which closed on May 4, 2001. Under the terms of the common stock and
warrant purchase agreement by and among those selling stockholders and us, we
agreed to sell an aggregate of 1,428,571 shares of common stock at $2.10 per
share, for gross proceeds of $3,000,000. In connection therewith, we also issued
warrants to purchase in the aggregate 428,571 shares of our common stock. The
warrants have an exercise price of $5.00, are exercisable for a period of four
years from the date of issuance. We may call (i) up to 50% of the warrants if
the common stock trades at a price equal to or greater than $7.00 per share for
10 consecutive trading days and (ii) the remaining 50% of the warrants if the
common stock trades at a price equal to or greater than $12.50 per share for 10
consecutive trading days. In connection with our sale of common stock pursuant
to that common stock and warrant purchase agreement, we entered into a
registration rights agreement pursuant to which, among other things, we agreed
to use our best efforts to file a registration statement to register for resale
the shares of common stock, including the shares of common stock issuable upon
exercise of the warrants, within 60 days after the closing date and have such
registration statement declared effective within 120 days after the closing
date. If the registration statement is not declared effective within such
120-day period, we will have to pay to each of the holders liquidated damages in
an amount equal to 2% of
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the purchase price paid by that holder for the shares of common stock purchased
pursuant to the common stock and warrant purchase agreement for each 30-day
period after the end of such 120-day period until the registration statement is
declared effective. Payment of the liquidated damages will be either in cash or
in shares of common stock at the option of the holder.
Alpha Capital Aktiengesellschaft and Vertical Ventures, LLC acquired
their shares of common stock in a private placement transaction which closed on
May 8, 2001. Under the terms of the Common Stock and Warrant Purchase Agreements
by and among those selling stockholders and us, we agreed to sell 1,047,619
shares of common stock at $2.10 per share, for gross proceeds of $2,200,000. In
connection therewith, we also issued warrants to purchase in the aggregate
314,285 shares of our common stock. The warrants have an exercise price of
$5.00, are exercisable for a period of four years from the date of issuance and
have adjustment provisions for standard dilution events including stock splits,
stock dividends and similar transactions. We may call (i) up to 50% of the
warrants if the common stock trades at a price equal to or greater than $7.00
per share for 10 consecutive trading days and (ii) the remaining 50% of the
warrants if the common stock trades at a price equal to or greater than $12.50
per share for 10 consecutive trading days. In connection with our sale of common
stock pursuant to those Common Stock and Warrant Purchase Agreements, we entered
into registration rights agreements pursuant to which, among other things, we
agreed to use our best efforts to file a registration statement to register for
resale the shares of common stock, including the shares of common stock issuable
upon exercise of the warrants, within 60 days after the closing date and have
such registration statement declared effective within 120 days after the closing
date. If the registration statement is not declared effective within such
120-day period, we will have to pay to each of the holders liquidated damages in
an amount equal to 2% of the purchase price paid by that holder for the shares
of common stock purchased pursuant to the Common Stock and Warrant Purchase
Agreements for each 30-day period after the end of such 120-day period until the
registration statement is declared effective. Payment of the liquidated damages
will be either in cash or in shares of common stock at the option of the holder.
On May 8, 2001, Atlas Capital Services, Inc. acquired warrants to
purchase 45,000 shares of our common stock at $5.00 per share as a finder's fee
in connection with the private placement transactions contemplated hereby,
pursuant to an agreement dated May 1, 2001. The warrants are exercisable for a
period of 5 years from the date of issuance.
The warrants have adjustment provisions for standard dilution events
including stock splits, stock dividends and similar transactions.
Other than as indicated above and as investors in private placements
and other financings for our common stock, the selling stockholders are not
affiliated with us and has not had any material relationship with us during the
past three years.
DESCRIPTION OF SECURITIES
GENERAL
Our authorized capital stock consists of 80,000,000 shares of common
stock, par value $0.01 per share, and 6,000,000 shares of preferred stock, par
value $0.01 per share. As of May 8, 2001, we
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have 50,851,292 shares of common stock issued and outstanding. We have reserved
12,352,169 shares of common stock for issuance upon exercise of outstanding
options and warrants.
COMMON STOCK
VOTING
The holders of our common stock are entitled to one vote for each share
held of record on all matters submitted to a vote of stockholders. Our
certificate of incorporation and by-laws do not provide for cumulative voting
rights in the election of directors. Accordingly, holders of a majority of the
shares of common stock entitled to vote in any election of directors may elect
all of the directors standing for election.
DIVIDENDS
Holders of common stock are entitled to receive ratably those dividends
as may be declared by our board of directors out of funds legally available for
that purpose.
RIGHTS ON LIQUIDATION
In the event of our liquidation, dissolution or winding up, holders of
common stock are entitled to share ratably in the assets remaining after payment
of liabilities.
PRE-EMPTIVE OR REDEMPTION RIGHTS
Holders of common stock have no preemptive, conversion or redemption
rights. All of the outstanding shares of common stock are fully-paid and
nonassessable.
PREFERRED STOCK
Our board of directors has the authority to issue up to 6,000,000
shares of preferred stock from time to time in one or more series. Our board has
the authority to establish the number of shares to be included in each series,
and to fix the designations, powers, preferences and rights of the shares of
each series and the applicable qualifications, limitations or restrictions. The
issuance of preferred stock may have the effect of delaying or preventing a
change in control. The issuance of preferred stock could decrease the amount of
earnings and assets available for distribution to the holders of common stock,
if any, or could adversely affect the rights and powers, including voting
rights, of the holders of the common stock. In certain circumstances, the
issuances could have the effect of decreasing the market price of the common
stock.
As of the date of this prospectus, we have not designated any shares of
preferred stock other than the series A, B, C, D and E preferred stock, all of
which have been fully converted into common stock.
-11-
ANTI-TAKEOVER CONSIDERATIONS
Our certificate of incorporation authorizes the issuance of up to
6,000,000 shares of $0.01 par value preferred stock. The issuance of preferred
stock with such rights could have the effect of limiting stockholder
participation in certain transactions such as mergers or tender offers and could
discourage or prevent a change in our management. We have no present intention
to issue any additional preferred stock.
We have a classified or staggered board of directors which limits an
outsider's ability to effect a rapid change of control of our board. In
addition, at the 1998 Annual Meeting of Stockholders held on September 24, 1998,
our stockholders approved measures to amend our certificate of incorporation and
by-laws, where applicable, to:
o implement an advance notice procedure for the submission of
director nominations and other business to be considered at
annual meetings of stockholders;
o permit only the President, the Vice Chairman of our board, the
Secretary or our board of directors to call special meetings
of stockholders and to limit the business permitted to be
conducted at such meetings to be brought before the meetings
by or at the direction of our board;
o provide that a member of our board of directors may only be
removed for cause by an affirmative vote of holders of at
least 66 2/3% of the voting power of the then outstanding
shares entitled to vote generally in the election of directors
voting together as a single class;
o fix the size of our board of directors at a maximum of twelve
directors, with the authorized number of directors set at ten,
and our board of directors having the sole power and authority
to increase or decrease the number of directors acting by an
affirmative vote of at least a majority of the total number of
authorized directors most recently fixed by our board of
directors;
o provide that any vacancy on the board may be filled for the
unexpired term (or for a new term in the case of an increase
in the size of the board) only by an affirmative vote of at
least a majority of the remaining directors then in office
even if less than a quorum, or by the sole remaining director;
o eliminate stockholder action by written consent;
o require the approval of holders of 80% of the then outstanding
voting stock and/or the approval of 66 2/3% of the directors
for certain corporate transactions; and
o require an affirmative vote of 66 2/3% of the voting stock in
order to amend or repeal any adopted amendments to the
certificate of incorporation and bylaws adopted at the
meeting.
-12-
Those measures combined with the ability of our board of directors to
issue "blank check" preferred stock and the staggered terms of the members of
our board of directors, could have the effect of delaying, deterring or
preventing a change in control without any further action by the stockholders.
In addition, the issuance of preferred stock, without stockholder approval, on
such terms as our board may determine, could adversely affect the voting power
of the holders of the common stock, including the loss of voting control to
others.
TRANSFER AGENT AND REGISTRAR
Continental Stock Transfer & Trust Company is our Transfer Agent and
Registrar for our common stock.
PLAN OF DISTRIBUTION
The selling stockholder and its pledgees, donees, transferees and other
subsequent owners, may offer its shares at various times in one or more of the
following transactions:
o on any U.S. securities exchange on which our common stock may
be listed at the time of sale
o in the over-the-counter market
o in privately negotiated transactions
o in connection with short sales; or
o in a combination of any of the above transactions.
The selling stockholder may offer its shares of common stock at
prevailing market prices at the time of sale, at prices related to those
prevailing market prices, at negotiated prices or at fixed prices.
The selling stockholder may also sell the shares under Rule 144 instead
of under this prospectus, if Rule 144 is available for those sales.
The transactions in the shares covered by this prospectus may be
effected by one or more of the following methods:
o ordinary brokerage transactions and transactions in which the
broker solicits purchasers;
o purchases by a broker or dealer as principal, and the resale
by that broker or dealer for its account under this
prospectus, including resale to another broker or dealer;
o block trades in which the broker or dealer will attempt to
sell the shares as agent but may position and resell a portion
of the block as principal in order to facilitate the
transaction; or
o negotiated transactions between selling stockholders and
purchasers without a broker or dealer.
The selling stockholder and any broker-dealers or other persons acting
on the behalf of parties that participate in the distribution of the shares may
be deemed to be underwriters. Any
-13-
commissions or profits they receive on the resale of the shares may be deemed to
be underwriting discounts and commissions under the Securities Act.
As of the date of this prospectus, we are not aware of any agreement,
arrangement or understanding between any broker or dealer and any of the selling
stockholders with respect to the offer or sale of the shares under this
prospectus.
We have advised the selling stockholder that during the time it is
engaged in distributing shares covered by this prospectus, it must comply with
the requirements of the Securities Act and Rule 10b-5 and Regulation M under the
Exchange Act. Under those rules and regulations, it:
o may not engage in any stabilization activity in connection
with our securities;
o must furnish each broker which offers common stock covered by
this prospectus with the number of copies of this prospectus
which are required by each broker; and
o may not bid for or purchase any of our securities or attempt
to induce any person to purchase any of our securities other
than as permitted under the Exchange Act.
INDEMNIFICATION FOR SECURITIES ACT LIABILITIES
Section 145 of the Delaware General Corporation Law allows a company to
indemnify its directors and officers against expenses, judgments, fines and
amounts paid in settlement under the conditions and limitations described in the
law. Our certificate of incorporation authorizes us to indemnify our officers,
directors and other agent to the fullest extent permitted under Delaware law.
Our certificate of incorporation provides that a director is not
personally liable for monetary damages to us or our stockholders for breach of
his or her fiduciary duties as a director. A director will be held liable for a
breach of his or her duty of loyalty to us or our stockholders, his or her
intentional misconduct or willful violation of law, actions or in actions not in
good faith, an unlawful stock purchase or payment of a dividend under Delaware
law, or transactions from which the director derives an improper personal
benefit. This limitation of liability does not affect the availability of
equitable remedies against the director including injunctive relief or
rescission.
We have purchased a directors and officers liability and reimbursement
policy that covers liabilities of our directors and officers arising out of
claims based upon acts or omissions in their capacities as directors and
officers.
Insofar as indemnification for liabilities arising under the Securities
Act may be permitted to our directors, officers and controlling persons pursuant
to the foregoing provisions, or otherwise, we have been advised that in the
opinion of the SEC such indemnification is against public policy as expressed in
the Securities Act and is, therefore, unenforceable.
-14-
LEGAL MATTERS
Jenkens & Gilchrist Parker Chapin LLP, New York, New York, a stockholder
of our company, will pass upon the validity of the securities offered hereby.
Martin Eric Weisberg, Esq., a member of the firm, is our Secretary, one of our
Directors, and a stockholder in our company.
EXPERTS
The financial statements incorporated in this prospectus by reference
to the Annual Report on Forms 10-K/A and 10-KSB/A for the years ended December
31, 2000 and 1999, respectively, have been so incorporated in reliance on the
report of Grant Thornton LLP, independent certified public accountants, given on
the authority of said firm as experts in auditing and accounting.
-15-
========================================================= ======================================================
WE HAVE NOT AUTHORIZED ANY DEALER, SALESPERSON OR ANY
OTHER PERSON TO GIVE ANY INFORMATION OR TO REPRESENT
ANYTHING OTHER THAN THOSE CONTAINED IN THIS
PROSPECTUS IN CONNECTION WITH THE OFFER CONTAINED
HEREIN, AND, IF GIVEN OR MADE, YOU SHOULD NOT RELY
UPON SUCH INFORMATION OR REPRESENTATIONS AS HAVING
BEEN AUTHORIZED BY XYBERNAUT CORPORATION. THIS
PROSPECTUS DOES NOT CONSTITUTE AN OFFER OF ANY SECURITIES 6,854,521
OTHER THAN THOSE TO WHICH IT RELATES OR AN OFFER TO SELL,
OR A SOLICITATION OF AN OFFER TO BUY, THOSE TO WHICH IT
RELATES IN ANY STATE TO ANY PERSON TO WHOM IT IS NOT SHARES OF COMMON STOCK
LAWFUL TO MAKE SUCH OFFER IN SUCH STATE. THE DELIVERY
OF THIS PROSPECTUS AT ANY TIME DOES NOT IMPLY THAT THE
INFORMATION HEREIN IS CORRECT AS OF ANY TIME AFTER THE
DATE OF THIS PROSPECTUS.
XYBERNAUT CORPORATION
TABLE OF CONTENTS
Page
----
Risk Factors.........................................2
Where You Can Find More
Information About Us.........................6
Use of Proceeds......................................7
Dilution.............................................7
Selling Stockholders ................................8
Description of Securities...........................11
Plan of Distribution ...............................13
Indemnification for Securities
Act Liabilities.............................14
Legal Matters.......................................15
Experts ............................................15 ____________
PROSPECTUS
____________
_________________________, 2001
========================================================= ======================================================
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 14. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION.
The following table sets forth the various expenses which will be paid
by us in connection with the issuance and distribution of the securities being
registered on this registration statement. The selling stockholders will not
incur any of the expenses set forth below. All amounts shown are estimates.
Filing fee for registration statement................ $ 6,099.70
Legal fees and expenses.............................. $ 10,000.00
Accounting expenses.................................. $ 5,000.00
-----------
Total................................................ $ 21,099.70
===========
ITEM 15. INDEMNIFICATION OF DIRECTORS AND OFFICERS.
Section 145 of the General Corporation Law of the State of
Delaware (the "DGCL") provides, in general, that a corporation
incorporated under the laws of the State of Delaware, such as the
registrant, may indemnify any person who was or is a party or is
threatened to be made a party to any threatened, pending or completed
action, suit or proceeding (other than a derivative action by or in the
right of the corporation) by reason of the fact that such person is or
was a director, officer, employee or agent of the corporation, or is or
was serving at the request of the corporation as a director, officer,
employee or agent of another enterprise, against expenses (including
attorneys' fees), judgments, fines and amounts paid in settlement
actually and reasonably incurred by such person in connection with such
action, suit or proceeding if such person acted in good faith and in a
manner such person reasonably believed to be in or not opposed to the
best interests of the corporation, and, with respect to any criminal
action or proceeding, had no reasonable cause to believe such person's
conduct was unlawful. In the case of a derivative action, a Delaware
corporation may indemnify any such person against expenses (including
attorneys' fees) actually and reasonably incurred by such person in
connection with the defense or settlement of such action or suit if
such person acted in good faith and in a manner such person reasonably
believed to be in or not opposed to the best interests of the
corporation, except that no indemnification will be made in respect of
any claim, issue or matter as to which such person will have been
adjudged to be liable to the corporation unless and only to the extent
that the Court of Chancery of the State of Delaware or any other court
in which such action was brought determines such person is fairly and
reasonably entitled to indemnity for such expenses.
Our certificate of incorporation provides that directors will not be
personally liable for monetary damages to us or our stockholders for breach of
fiduciary duty as a director, except for liability resulting from a breach of
the director's duty of loyalty to us or our stockholders, intentional misconduct
or willful violation of law, actions or inactions not in good faith, an unlawful
stock
purchase or payment of a dividend under Delaware law, or transactions from
which the director derives improper personal benefit. Such limitation of
liability does not affect the availability of equitable remedies such as
injunctive relief or rescission. Our certificate of incorporation also
authorizes us to indemnify our officers, directors and other agents, by bylaws,
agreements or otherwise, to the fullest extent permitted under Delaware law. We
have entered into an indemnification agreement with each of our directors and
officers which may, in some cases, be broader than the specific indemnification
provisions contained in our certificate of incorporation or as otherwise
permitted under Delaware law. Each indemnification agreement may require us,
among other things, to indemnify such officers and directors against certain
liabilities that may arise by reason of their status or service as a director or
officer, against liabilities arising from willful misconduct of a culpable
nature, and to obtain directors' and officers' liability insurance if available
on reasonable terms.
We maintain directors and officers liability policies with SPMI
(Lloyd's of London) and North American Specialty (Swiss Reinsurance) that
contain a combined limit of liability of $5,000,000 per policy year.
ITEM 16. EXHIBITS.
NUMBER DESCRIPTION OF EXHIBIT
4.1 Form of Warrant issued to Archway Holdings Limited
4.2 Form of Common Stock and Warrant Purchase Agreement, dated as of April
19, 2001, between Archway Holdings Limited and Xybernaut Corporation
4.3 Form of Registration Rights Agreement, dated as of April 19, 2001,
between Archway Holdings Limited and Xybernaut Corporation
4.4 Form of Warrant issued to Cranshire Capital, L.P., Euram Cap Strat. "A"
Fund Limited, The dotCom Fund, LLC, Alpha Capital Aktiengesellschaft,
Vertical Ventures, LLC and Atlas Capital Services, Inc..
4.5 Form of Common Stock and Warrant Purchase Agreement, dated as of May 4,
2001, among Xybernaut Corporation, Cranshire Capital, L.P., Euram Cap
Strat. "A" Fund Limited and The dotCom Fund, LLC
4.6 Form of Registration Rights Agreement, dated as of May 4, 2001, among
Xybernaut Corporation, Cranshire Capital, L.P., Euram Cap Strat. "A"
Fund Limited and The dotCom Fund, LLC
4.7 Form of Common Stock and Warrant Purchase Agreement, dated as of May 4,
2001, between Alpha Capital Aktiengesellschaft and Xybernaut
Corporation
4.8 Form of Registration Rights Agreement, dated as of May 4, 2001, between
Alpha Capital Aktiengesellschaft and Xybernaut Corporation
4.9 Form of Common Stock and Warrant Purchase Agreement, dated as of May 4,
2001, between Vertical Ventures, LLC and Xybernaut Corporation
4.10 Form of Registration Rights Agreement, dated as of May 4, 2001, between
Vertical Ventures, LLC and Xybernaut Corporation
4.11 Form of Agreement, dated May 1, 2001, between Atlas Capital Services,
Inc. and Xybernaut Corporation.
II-2
5.1 Opinion of Jenkens & Gilchrist Parker Chapin LLP
23.1 Consent of Grant Thornton LLP
23.2 Consent of Jenkens & Gilchrist Parker Chapin LLP (included in their
opinion filed as Exhibit 5.1)
ITEM 17. UNDERTAKINGS.
The undersigned registrant hereby undertakes:
(1) To file, during any period in which offers or sales are being made,
a post-effective amendment to this registration statement;
(i) To include any prospectus required by Section 10(a)(3) of
the Securities Act of 1933;
(ii) To reflect in the prospectus any facts or events arising
after the effective date of the registration statement (or the most
recent post-effective amendment thereof) which, individually or in the
aggregate, represent a fundamental change in the information set forth
in the registration statement. Notwithstanding the foregoing, any
increase or decrease in volume of securities offered (if the total
dollar value of securities offered would not exceed that which was
registered) and any deviation from the low or high and of the estimated
maximum offering range may be reflected in the form of prospectus filed
with the Securities and Exchange Commission pursuant to Rule 424(b) if,
in the aggregate, the changes in volume and price represent no more
than 20 percent change in the maximum aggregate offering price set
forth in the "Calculation of Registration Fee" table in the effective
registration statement.
(iii) To include any material information with respect to the
plan of distribution not previously disclosed in the registration
statement or any material change to such information in the
registration statement;
(2) That, for the purpose of determining any liability under the
Securities Act of 1933, each such post-effective amendment will be deemed to be
a new registration statement relating to the securities offered therein, and the
offering of such securities at that time will be deemed to be the initial bona
fide offering thereof.
(3) To remove from registration by means of a post-effective amendment
any of the securities being registered which remain unsold at the termination of
the offering.
Insofar as indemnification for liabilities arising under the Securities
Act of 1933 may be permitted to directors, officers and controlling persons of
the registrant pursuant to the foregoing provisions, or otherwise, the
registrant has been advised that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as expressed in the
Securities Act and is, therefore, unenforceable.
II-3
In the event that a claim for indemnification against such liabilities
(other than the payment by the registrant of expenses incurred or paid by a
director, officer or controlling person of the registrant in the successful
defense of any action, suit or proceeding) is asserted by such director, officer
or controlling person in connection with the securities being registered, the
registrant will, unless in the opinion of its counsel the matter has been
settled by controlling precedent, submit to a court of appropriate jurisdiction
the question whether such indemnification by it is against public policy as
expressed in the Securities Act and will be governed by the final adjudication
of the issue.
The undersigned registrant hereby undertakes that, for purposes of
determining any liability under the Securities Act of 1933, each filing of the
registrant's annual report pursuant to section 13(a) or section 15(d) of the
Securities Exchange Act of 1934 (and, where applicable, each filing of an
employee benefit plan's annual report pursuant to section 15(d) of the
Securities Exchange Act of 1934) that is incorporated by reference in the
registration statement will be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities
at that time will be deemed to be the initial bona fide offering thereof.
II-4
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the
registrant certifies that it has reasonable grounds to believe that it meets all
of the requirements for filing on Form S-3 and has duly caused this registration
statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Fairfax, Commonwealth of Virginia on May 8, 2001.
XYBERNAUT CORPORATION
By: /s/ Edward G. Newman
--------------------------------------
Edward G. Newman
President, Chief Executive Officer and
Chairman of the Board of Directors
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that each individual whose signature
appears below constitutes Edward G. Newman and Steven A. Newman, each acting
alone, his true and lawful attorney-in-fact and agent, with full power of
substitution and resubstitution, for him and in his name, place and stead, in
any and all capacities, to sign any and all amendments to this Form S-3 and to
file the same with exhibits thereto, and all documents in connection therewith,
with the Securities and Exchange Commission, granting unto said
attorneys-in-fact and agents, and each of them, full power and authority to do
and perform each and every act and thing requisite and necessary to be done in
and about the premises, as fully to all intents and purposes as he might or
could do in person, hereby ratifying and confirming all that said
attorneys-in-fact and agents or any of them, or their or is substitute or
substitutes, may lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Act of 1933, this
registration statement on Form S-3 has been signed below by the following
persons in the capacities indicated on May 8, 2001.
SIGNATURE TITLE
/s/ Edward G. Newman President, Chief Executive Officer and
- --------------------------- Chairman of the Board of Directors
Edward G. Newman
/s/ Steven A. Newman Executive Vice President and Vice
- ------------------------------------ Chairman of the Board of Directors
Steven A. Newman, M.D.
/s/ John F. Moynahan Senior Vice President, Chief Financial
- ------------------------------------ Officer and Treasurer
John F. Moynahan
II-5
/s/ Eugene J. Amobi Director
- ------------------------------------
Eugene J. Amobi
/s/ Keith P. Hicks Director
- ------------------------------------
Keith P. Hicks
/s/ Phillip E. Pearce Director
- ------------------------------------
Phillip E. Pearce
/s/ James J. Ralabate Director
- ------------------------------------
James J. Ralabate
/s/ Harry E. Soyster Director
- ------------------------------------
Lt. Gen. Harry E. Soyster
/s/ Kazuyuki Toyosato Executive Vice President and Director
- ------------------------------------
Kazuyuki Toyosato
/s/ Edwin Vogt Senior Vice President and Director
- ------------------------------------
Dr. Edwin Vogt
/s/ Martin Eric Weisberg Secretary and Director
- ------------------------------------
Martin Eric Weisberg, Esq.
II-6
SECURITIES AND
EXCHANGE
COMMISSION
WASHINGTON, D.C. 20549
-------------
EXHIBITS TO
FORM S-3
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
-------------
XYBERNAUT CORPORATION
(EXACT NAME OF ISSUER AS SPECIFIED
IN ITS CHARTER)
MAY 9, 2001
E-1
NUMBER DESCRIPTION OF EXHIBIT
4.1 Form of Warrant issued to Archway Holdings Limited
4.2 Form of Common Stock and Warrant Purchase Agreement, dated as of April
19, 2001, between Archway Holdings Limited and Xybernaut Corporation
4.3 Form of Registration Rights Agreement, dated as of April 19, 2001,
between Archway Holdings Limited and Xybernaut Corporation
4.4 Form of Warrant issued to Cranshire Capital, L.P., Euram Cap Strat. "A"
Fund Limited, The dotCom Fund, LLC, Alpha Capital Aktiengesellschaft,
Vertical Ventures, LLC and Atlas Capital Services, Inc..
4.5 Form of Common Stock and Warrant Purchase Agreement, dated as of May 4,
2001, among Xybernaut Corporation, Cranshire Capital, L.P., Euram Cap
Strat. "A" Fund Limited and The dotCom Fund, LLC
4.6 Form of Registration Rights Agreement, dated as of May 4, 2001, among
Xybernaut Corporation, Cranshire Capital, L.P., Euram Cap Strat. "A"
Fund Limited and The dotCom Fund, LLC
4.7 Form of Common Stock and Warrant Purchase Agreement, dated as of May 4,
2001, between Alpha Capital Aktiengesellschaft and Xybernaut
Corporation
4.8 Form of Registration Rights Agreement, dated as of May 4, 2001, between
Alpha Capital Aktiengesellschaft and Xybernaut Corporation
4.9 Form of Common Stock and Warrant Purchase Agreement, dated as of May 4,
2001, between Vertical Ventures, LLC and Xybernaut Corporation
4.10 Form of Registration Rights Agreement, dated as of May 4, 2001, between
Vertical Ventures, LLC and Xybernaut Corporation
4.11 Form of Agreement, dated May 1, 2001, between Atlas Capital Services,
Inc. and Xybernaut Corporation.
5.1 Opinion of Jenkens & Gilchrist Parker Chapin LLP
23.1 Consent of Grant Thornton LLP
23.2 Consent of Jenkens & Gilchrist Parker Chapin LLP (included in their
opinion filed as Exhibit 5.1)