UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
Interpharm Holdings, Inc.
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(Name of Company)
Common Stock, $0.01 par value
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(Title of Class of Securities)
460588106
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(CUSIP Number of Class of Securities)
Joan P. Neuscheler Gloria M. Skigen
Tullis-Dickerson Capital Focus III, L.P. Law Offices of Gloria M. Skigen
c/o Tullis-Dickerson Partners III, L.L.C. Two Greenwich Plaza, 4th Fl.
Two Greenwich Plaza, 4th Fl. Greenwich, CT 06830
Greenwich, CT 06830 (203) 861-1717
(203) 629-8700
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(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
May 26, 2006
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(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 SECTIONS 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 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
-------------------------- ------------------------
CUSIP No. 460588106 Page 2 of 14 Pages
-------------------------- ------------------------
-------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Tullis-Dickerson Capital Focus III, L.P. IRS # 06-1621801
-------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)[X]
(b)[ ]
-------------------------------------------------------------------------------
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, United States of America
-------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
----------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 8,801,669 (1)
OWNED BY ----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 0
----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
8,801,669 (1)
-------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
8,801,669 (1)
-------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
-------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12.1% (see Item 5)
-------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
-------------------------------------------------------------------------------
(1) This includes 2,281,914 shares issuable upon exercise of warrants and
6,519,755 shares issuable upon conversion of preferred stock). See Item 5.
SCHEDULE 13D
-------------------------- ------------------------
CUSIP No. 460588106 Page 3 of 14 Pages
-------------------------- ------------------------
-------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Tullis-Dickerson Partners III, L.L.C. IRS # 06-1621800
-------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)[X]
(b)[ ]
-------------------------------------------------------------------------------
3 SEC USE ONLY
-------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
-------------------------------------------------------------------------------
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, United States of America
-------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
----------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 8,801,669 (1)
OWNED BY ----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 0
----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
8,801,669 (1)
-------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
8,801,669 (1)
-------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
-------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12.1% (see Item 5)
-------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
-------------------------------------------------------------------------------
(1) This includes 2,281,914 shares issuable upon exercise of warrants and
6,519,755 shares issuable upon conversion of preferred stock. See Item 5.
SCHEDULE 13D
-------------------------- ------------------------
CUSIP No. 460588106 Page 4 of 14 Pages
-------------------------- ------------------------
-------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Joan P. Neuscheler
-------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)[X]
(b)[ ]
-------------------------------------------------------------------------------
3 SEC USE ONLY
-------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
-------------------------------------------------------------------------------
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 of America
-------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
----------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 8,801,669 (1)
OWNED BY ----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 0
----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
8,801,669 (1)
-------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
8,801,669 (1)
-------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
-------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12.1% (see Item 5)
-------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
-------------------------------------------------------------------------------
(1) This includes 2,281,914 shares issuable upon exercise of warrants and
6,519,755 shares issuable upon conversion of preferred stock. See Item 5.
SCHEDULE 13D
-------------------------- ------------------------
CUSIP No. 460588106 Page 5 of 14 Pages
-------------------------- ------------------------
-------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
James L.L. Tullis
-------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)[X]
(b)[ ]
-------------------------------------------------------------------------------
3 SEC USE ONLY
-------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
-------------------------------------------------------------------------------
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 of America
-------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
----------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 8,801,669 (1)
OWNED BY ----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 0
----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
8,801,669 (1)
-------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
8,801,669 (1)
-------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
-------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12.1% (see Item 5)
-------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
-------------------------------------------------------------------------------
(1) This includes 2,281,914 shares issuable upon exercise of warrants and
6,519,755 shares issuable upon conversion of preferred stock. See Item 5.
SCHEDULE 13D
-------------------------- ------------------------
CUSIP No. 460588106 Page 6 of 14 Pages
-------------------------- ------------------------
-------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Thomas P. Dickerson
-------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)[X]
(b)[ ]
-------------------------------------------------------------------------------
3 SEC USE ONLY
-------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
-------------------------------------------------------------------------------
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 of America
-------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
----------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 8,801,669 (1)
OWNED BY ----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 0
----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
8,801,669 (1)
-------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
8,801,669 (1)
-------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
-------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12.1% (see Item 5)
-------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
-------------------------------------------------------------------------------
(1) This includes 2,281,914 shares issuable upon exercise of warrants and
6,519,755 shares issuable upon conversion of preferred stock. See Item 5.
SCHEDULE 13D
-------------------------- ------------------------
CUSIP No. 460588106 Page 7 of 14 Pages
-------------------------- ------------------------
-------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Lyle A. Hohnke
-------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)[X]
(b)[ ]
-------------------------------------------------------------------------------
3 SEC USE ONLY
-------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
-------------------------------------------------------------------------------
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 of America
-------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
----------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 8,801,669 (1)
OWNED BY ----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 0
----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
8,801,669 (1)
-------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
8,801,669 (1)
-------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
-------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12.1% (see Item 5)
-------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
-------------------------------------------------------------------------------
(1) This includes 2,281,914 shares issuable upon exercise of warrants and
6,519,755 shares issuable upon conversion of preferred stock. See Item 5.
SCHEDULE 13D
-------------------------- ------------------------
CUSIP No. 460588106 Page 8 of 14 Pages
-------------------------- ------------------------
-------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Timothy M. Buono
-------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)[X]
(b)[ ]
-------------------------------------------------------------------------------
3 SEC USE ONLY
-------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
-------------------------------------------------------------------------------
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 of America
-------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
----------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 8,801,669 (1)
OWNED BY ----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 0
----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
8,801,669 (1)
-------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
8,801,669 (1)
-------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
-------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12.1% (see Item 5)
-------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
-------------------------------------------------------------------------------
(1) This includes 2,281,914 shares issuable upon exercise of warrants and
6,519,755 shares issuable upon conversion of preferred stock. See Item 5.
SCHEDULE 13D
ITEM 1. SECURITY AND ISSUER.
This Schedule 13D is filed by Tullis-Dickerson Capital Focus III, L.P.
("CAPITAL FOCUS III"), Tullis-Dickerson Partners III, L.L.C. ("PARTNERS III"),
Joan P. Neuscheler ("NEUSCHELER"), James L. L. Tullis ("TULLIS"), Thomas P.
Dickerson ("DICKERSON"), Lyle A. Hohnke ("HOHNKE") and Timothy M. Buono ("BUONO"
and together with Capital Focus III, Partners III, Neuscheler, Tullis, Dickerson
and Hohnke, the "REPORTING PERSONS") relating to the common stock, par value
$0.01 per share (the "COMMON STOCK"), of Interpharm Holdings, Inc. (the
"Issuer"). The principal executive office of the Issuer is located at 75 Adams
Avenue, Hauppauge, New York 11788.
The Reporting Persons are making this single, joint filing because they
may be deemed to constitute a "group" within the meaning of Section 13(d)(3) of
the Act. The agreement among the Reporting Persons to file jointly (the "JOINT
FILING AGREEMENT") is attached hereto as Exhibit 1.
ITEM 2. IDENTITY AND BACKGROUND.
(a) This statement is filed on behalf of the Reporting Persons.
(b) The address of the principal business office of the Reporting
Persons is 2 Greenwich Plaza, 4th Floor, Greenwich, Connecticut 06830
(c) Capital Focus III is a healthcare focused venture fund. The
principal business of Partners III is serving as the general partner of Capital
Focus III. Each of Tullis, Neuscheler, Dickerson, Hohnke and Buono serve as
principals of Capital Focus.
(d) None of the Reporting Persons has, during the last five years, been
convicted in a criminal proceeding (excluding traffic violations or similar
misdemeanors).
(e) None of the Reporting Persons has, during the last five years, been
a party to a civil proceeding of a judicial or administrative body of competent
jurisdiction and as a result of such proceeding was or is subject to a judgment,
decree or final order enjoining future violations of, or prohibiting or
mandating activities subject to, federal or state securities laws or finding any
violation with respect to such laws.
(f) Capital Focus III is a limited partnership organized in the State
of Delaware. Partners III is a limited liability company organized in the State
of Delaware. Each of Tullis, Neuscheler, Dickerson, Hohnke and Buono are United
States citizens.
Item 3. Source and Amount of Funds or Other Consideration.
Funds for the purchase of the Series B-1 Preferred Stock and the
Warrants (each as defined below) related to the shares of Common Stock reported
herein were derived from the
available capital of Capital Focus III. A total of approximately $10,000,000 was
paid to acquire the Series B-1 Preferred Stock and the Warrants.
ITEM 4 PURPOSE OF TRANSACTION.
The Reporting Persons acquired the shares of Common Stock for
investment in the ordinary course of business because they believed that the
shares of Common Stock, when purchased, represented an attractive investment
opportunity based on the Issuer's prospects and strategy.
On May 15, 2006, Capital Focus III entered into a Securities Purchase
Agreement (the "SECURITIES PURCHASE AGREEMENT"), attached hereto as Exhibit 2
and incorporated herein by reference pursuant to which the Issuer authorized a
new series of convertible preferred stock designated as Series B-1 Convertible
Preferred Stock, par value $0.01 (the "SERIES B-1 PREFERRED STOCK") pursuant to
a Certificate of Designations, Preferences and Rights of Series B-1 Preferred
Stock (the "SERIES B-1 CERTIFICATE OF DESIGNATIONS"), in the form attached
hereto as Exhibit 3 and incorporated herein by reference, and warrants (the
"WARRANTS", together with the Series B-1 Preferred Stock, the "SECURITIES"), in
the form attached hereto as Exhibit 4 and incorporated herein by reference. The
Series B-1 Preferred Stock has a stated value of $1,000 per share (the
"PREFERRED STATED VALUE") and is initially convertible into shares of Common
Stock at an initial conversion price of $ 1.5338 (subject to adjustment as
provided in the Series B-1 Certificate of Designations, the "PREFERRED
CONVERSION PRICE"). The Warrants are exercisable for a period of five years at
an initial exercise price of $1.639 per share (subject to adjustment as provided
in the Warrants). Accordingly, on May 26, 2006 at the closing of the Securities
Purchase Agreement, 10,000 shares of Series B-1 Preferred Stock that are
initially convertible into 6,519,755 shares of Common Stock and Warrants
initially exercisable into 2,281,914 shares of Common Stock were issued to
Capital Focus III for a gross purchase price of $10 million (the "TRANSACTION").
On May 15, 2006, the Issuer and Capital Focus III entered into a
Registration Rights Agreement (the "REGISTRATION RIGHTS AGREEMENT"), which is
attached hereto as Exhibit 5 and incorporated herein by reference, pursuant to
which the Issuer agreed to provide certain registration rights with respect to
the securities issued under the Securities Purchase Agreement, including the
obligation of the Issuer to file with the Securities and Exchange Commission
(the "SEC"), as soon as practicable after the closing date of the Transaction,
but in no event later than 60 calendar days after a request is made by the
Required Holders (as defined in the Registration Rights Agreement) which request
may be made any time after the earlier of (x) December 31, 2006 and (y) such
time after the date of the Registration Rights Agreement that the Company is
eligible to file a Registration Statement thereunder on Form S-3, a Registration
Statement on Form S-3 covering the resale of all Registrable Securities (as
defined in the Registration Rights Agreement) of Capital Focus III.
Under the Series B-1 Certificate of Designations, so long as Capital
Focus III or any of its affiliates continues to hold at least twenty five
percent of the cumulative aggregate number of Series B-1 Preferred Stock issued
to the Capital Focus III on the Initial Issuance Date (as defined in the Series
B-1 Certificate of Designations), Capital Focus III is entitled to elect one
director to the Board of Directors of the Issuer (an "INVESTOR DESIGNEE") at
each annual election of directors; provided, however, that any Investor Designee
other than Richard J. Miller ("MILLER") must be
approved by the Company, such approval not to be unreasonably withheld or
delayed. Miller initially is serving as the Investor Designee.
The Reporting Persons intend to continue to review and evaluate their
investment in the Issuer. Depending on the price and availability of funds,
subsequent developments affecting the Issuer, the Issuer's business, other
investment and business opportunities available to the Reporting Persons and
general stock market, economic and other factors that the Reporting Persons may
deem relevant from time to time, the Reporting Persons may maintain their
investment at current levels or sell all or a part of their investment, or
acquire additional shares of Common Stock or other securities of the Issuer at
any time. Any acquisition or disposition of shares of Common Stock by the
Reporting Persons may be effected through open market or privately negotiated
transactions, or otherwise.
Except to the extent set forth above, or in any other Item hereof, the
Reporting Persons do not have any present plans or proposals that relate to or
would result in any of the actions required to be described in Item 4 of this
Schedule 13D. However, the Reporting Persons may, at any time and from time to
time, review or reconsider their position with respect to the Issuer, and
formulate (and modify) plans or proposals with respect to any such matters. At
the request of the Issuer, the Reporting Persons may provide additional
assistance to the Issuer in the development of its business and business plan.
ITEM 5. INTEREST IN SECURITIES OF THE COMPANY.
(a) As of the date of this Schedule 13D, (i) the Reporting Persons may
be deemed to beneficially own 8,801,669 shares of Common Stock (including
2,281,914 shares issuable upon exercise of warrants and 6,519,755 shares
issuable upon conversion of preferred stock). The shares of Common Stock that
the Reporting Persons may be deemed to beneficially own represent 12.1% of the
shares outstanding based upon the 63,774,494 shares of Common Stock stated to be
outstanding by the Issuer in the letter dated May 26, 2006 from the Issuer's
transfer agent to the Buyers (as defined in the Securities Purchase Agreement)
pursuant to the Securities Purchase Agreement. Partners III is the sole general
partner of Capital Focus III. Neuscheler, Tullis, Dickerson, Hohnke and Buono
share voting and/or dispositive power over all shares of Common Stock held by
Capital Focus III. The Reporting Persons disclaim beneficial ownership of the
shares of Common Stock beneficially owned except to the extent of their
pecuniary interests therein.
(b) Partners III is the sole general partner of Capital Focus III.
Neuscheler, Tullis, Dickerson, Hohnke and Buono share voting and/or dispositive
power over all shares. These individuals disclaim beneficial ownership of the
shares of Common Stock beneficially owned by the above entities except to the
extent of their pecuniary interests therein.
(c) During the last sixty days there were no transactions in the Common
Stock effected by the Reporting Persons other than the acquisition of the
Securities.
(d) The limited partners or members of Capital Focus III and Partners
III have the right to participate indirectly in the receipt of dividends from,
or proceeds from the sale of, the
shares of Common Stock in accordance with their respective ownership interests
in their respective entities.
(e) Not applicable.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH
RESPECT TO SECURITIES OF THE ISSUER.
Except as otherwise set forth herein, the Reporting Persons do not have
any contract, arrangement, understanding or relationship with any person with
respect to the securities of the Issuer.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
1. Joint Filing Agreement pursuant to Rule 13d-1(k)(l) among the Reporting
Persons.
2. Securities Purchase Agreement, dated May 15, 2006, by and among the Issuer
and Capital Focus III (incorporated by reference herein to the Issuer's Current
Report on Form 8-K filed on May 19, 2006)
3. Form of Certificate of Designations, Preferences and Rights of Series B-1
Convertible Preferred Stock (incorporated by reference herein to the Issuer's
Current Report on Form 8-K filed on June 2, 2006)
4. Warrant to Purchase Common Stock (incorporated by reference herein to the
Issuer's Current Report on Form 8-K filed on June 2, 2006)
5. Registration Rights Agreement, dated May 15, 2006 by and among the Issuer and
Capital Focus III (incorporated by reference herein to the Issuer's Current
Report on Form 8-K filed on June 2, 2006)
SIGNATURES
After reasonable inquiry and to the best of his knowledge and belief,
each of the undersigned certifies that the information set forth in this
statement is true, complete and correct.
June 5, 2006 TULLIS-DICKERSON CAPITAL FOCUS III, L.P.
BY: TULLIS-DICKERSON PARTNERS III, L.L.C.,
ITS:GENERAL PARTNER
By: /s/ Joan P. Neuscheler
----------------------------------------
JOAN P. NEUSCHELER
Principal
June 5, 2006 TULLIS-DICKERSON PARTNERS III, L.L.C.
By: /s/ Joan P. Neuscheler
----------------------------------------
JOAN P. NEUSCHELER
Principal
June 5, 2006 /s/ Joan P. Neuscheler
----------------------------------------
JOAN P. NEUSCHELER
June 5, 2006 /s/ James L.L. Tullis
----------------------------------------
JAMES L.L. TULLIS
June 5, 2006 /s/ Thomas P. Dickerson
----------------------------------------
THOMAS P. DICKERSON
June 5, 2006 /s/ Lyle A. Hohnke
----------------------------------------
LYLE A. HOHNKE
June 5, 2006 /s/ Timothy M. Buono
----------------------------------------
TIMOTHY M. BUONO
EXHIBIT INDEX
1. Joint Filing Agreement pursuant to Rule 13d-1(k)(l) among the Reporting
Persons.
2. Securities Purchase Agreement, dated May 15, 2006, by and among the Issuer
and Capital Focus III (incorporated by reference herein to the Issuer's Current
Report on Form 8-K filed on May 19, 2006)
3. Form of Certificate of Designations, Preferences and Rights of Series B-1
Convertible Preferred Stock (incorporated by reference herein to the Issuer's
Current Report on Form 8-K filed on June 2, 2006)
4. Warrant to Purchase Common Stock (incorporated by reference herein to the
Issuer's Current Report on Form 8-K filed on June 2, 2006)
5. Registration Rights Agreement, dated May 15, 2006 by and among the Issuer and
Capital Focus III (incorporated by reference herein to the Issuer's Current
Report on Form 8-K filed on June 2, 2006)
EXHIBIT 1
The undersigned acknowledge and agree that the foregoing statement on
Schedule 13D is filed on behalf of each of the undersigned, and that all
subsequent amendments to this statement on Schedule 13D shall be filed on behalf
of each of the undersigned without the necessity of filing additional joint
acquisition statements. The undersigned acknowledge that each shall be
responsible for the timely filing of such amendments, and for the completeness
and accuracy of the information concerning him or it contained therein, but
shall not be responsible for the completeness and accuracy of the information
concerning the other, except to the extent that he or it knows or has reason to
believe that such information is inaccurate.
June 5, 2006 TULLIS-DICKERSON CAPITAL FOCUS III, L.P.
BY: TULLIS-DICKERSON PARTNERS III, L.L.C.,
ITS: GENERAL PARTNER
By: /s/ Joan P. Neuscheler
--------------------------------------
JOAN P. NEUSCHELER
Principal
June 5, 2006 TULLIS-DICKERSON PARTNERS III, L.L.C.
By: /s/ Joan P. Neuscheler
--------------------------------------
JOAN P. NEUSCHELER
Principal
June 5, 2006 /s/ Joan P. Neuscheler
--------------------------------------
JOAN P. NEUSCHELER
June 5, 2006 /s/ James L.L. Tullis
--------------------------------------
JAMES L.L. TULLIS
June 5, 2006 /s/ Thomas P. Dickerson
--------------------------------------
THOMAS P. DICKERSON
June 5, 2006 /s/ Lyle A. Hohnke
--------------------------------------
LYLE A. HOHNKE
June 5, 2006 /s/ Timothy M. Buono
--------------------------------------
TIMOTHY M. BUONO