SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Schedule 13D
Under the Securities Exchange Act of 1934
(Amendment No. __)*
LIQUID AUDIO INC.
(Name of Issuer)
Common Stock, par value $0.001 per share
(Title of Class of Securities)
53631T 10 2
(CUSIP Number)
Shawn Kimel
444 Adelaide West
Toronto, Ontario, M5V 1S7
(416) 365-2155
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
With a copy to:
Matthew A. McMurphy
901 Main Street, Suite 6000
Dallas, Texas 75202
(214) 953-6127
August 19, 2002
(Date of Event which Requires Filing
of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of ss.ss. 240.13d-1(e), 240.13d(f), or 240.13d(g), check the
following box [ ].
NOTE: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See Rule 240.13d-7 for other
parties to whom copies are to be sent.
* The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 (the "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).
Page 1
--------------------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
The K2 Arbitrage Fund L.P.
--------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |X|
--------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
WC
--------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
2(d) or 2(a) |_|
--------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Ontario, Canada
--------------------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 1,266,300
OWNED BY
EACH
REPORTING
PERSON
WITH
--------------------------------------------------------------------------------------------------------------------
8 SHARED VOTING POWER
None
--------------------------------------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
1,266,300
--------------------------------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
None
--------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,266,300
--------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_|
(SEE INSTRUCTIONS)
--------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.6%
--------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
PN
--------------------------------------------------------------------------------------------------------------------
- 2 -
--------------------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
K2 GenPar, Inc.
--------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |X|
--------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
N/A
--------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
2(d) or 2(a) |_|
--------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Ontario, Canada
--------------------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 1,266,300
OWNED BY
EACH
REPORTING
PERSON
WITH
--------------------------------------------------------------------------------------------------------------------
8 SHARED VOTING POWER
None
--------------------------------------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
1,266,300
--------------------------------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
None
--------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,266,300
--------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_|
(SEE INSTRUCTIONS)
--------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.6%
--------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
CO
--------------------------------------------------------------------------------------------------------------------
- 3 -
--------------------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Shawn Kimel
--------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |X|
--------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
N/A
--------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
2(d) or 2(a) |_|
--------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Canadian
--------------------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 1,266,300
OWNED BY
EACH
REPORTING
PERSON
WITH
--------------------------------------------------------------------------------------------------------------------
8 SHARED VOTING POWER
None
--------------------------------------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
1,266,300
--------------------------------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
None
--------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,266,300
--------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_|
(SEE INSTRUCTIONS)
--------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.6%
--------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
--------------------------------------------------------------------------------------------------------------------
- 4 -
--------------------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Westdale 2000, Inc.
--------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |X|
--------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
WC
--------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
2(d) or 2(a) |_|
--------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Ontario, Canada
--------------------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 203,000
OWNED BY
EACH
REPORTING
PERSON
WITH
--------------------------------------------------------------------------------------------------------------------
8 SHARED VOTING POWER
None
--------------------------------------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
203,000
--------------------------------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
None
--------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
203,000
--------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_|
(SEE INSTRUCTIONS)
--------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.9%
--------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
CO
--------------------------------------------------------------------------------------------------------------------
- 5 -
---------- ---------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Westdale Construction Ltd.
--------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |X|
--------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
N/A
--------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
2(d) or 2(a) |_|
--------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Ontario, Canada
--------------------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 203,000
OWNED BY
EACH
REPORTING
PERSON
WITH
--------------------------------------------------------------------------------------------------------------------
8 SHARED VOTING POWER
None
--------------------------------------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
203,000
--------------------------------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
None
--------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
203,000
--------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_|
(SEE INSTRUCTIONS)
--------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.9%
--------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
CO
--------------------------------------------------------------------------------------------------------------------
- 6 -
--------------------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Ronald Kimel
--------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |X|
--------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
N/A
--------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
2(d) or 2(a) |_|
--------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Canadian
--------------------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 203,000
OWNED BY
EACH
REPORTING
PERSON
WITH
--------------------------------------------------------------------------------------------------------------------
8 SHARED VOTING POWER
None
--------------------------------------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
203,000
--------------------------------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
None
--------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
203,000
--------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_|
(SEE INSTRUCTIONS)
--------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.9%
--------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
--------------------------------------------------------------------------------------------------------------------
- 7 -
Item 1. Security and Issuer.
The title and class of equity securities to which this Statement
relates is the common stock, $0.001 par value per share, (the "Stock") of Liquid
Audio, Inc., a Delaware corporation (the "Issuer"). The address of the principal
executive offices of the Issuer is 800 Chesapeake Drive, Redwood City,
California 94063.
Item 2. Identity and Background.
Pursuant to Rule 13d-1(a) of Regulation 13D-G of the General Rules and
Regulations under the Securities Exchange Act of 1934, as amended (the "Act"),
this Schedule 13D Statement is hereby filed by the following persons
(collectively, the "Reporting Persons"): The K2 Arbitrage Fund L.P., an Ontario
limited partnership ("K2 Arbitrage"); K2 GenPar, Inc., an Ontario corporation
and sole general partner of K2 Arbitrage ("K2 GenPar"); Shawn Kimel, a Canadian
citizen and President of K2 GenPar; Westdale 2000, Inc., an Ontario corporation
("Westdale 2000"); Westdale Construction Ltd., an Ontario corporation and sole
shareholder of Westdale 2000 ("Westdale Construction") and Ronald Kimel, a
Canadian citizen and President of Westdale 2000 and Westdale Construction.
K2 Arbitrage is an Ontario limited partnership, the principal business
of which is to invest in equity securities. The principal business address of K2
Arbitrage, which also serves as its principal office, is 444 Adelaide Street
West, Toronto, Ontario M5V 1S7.
K2 GenPar is an Ontario corporation, the principal business of which is
serving as the general partner of K2 Arbitrage, and activities related thereto.
The principal business address of K2 GenPar, which also serves as its principal
office, is 444 Adelaide Street West, Toronto, Ontario M5V 1S7.
The principal business or employment of Shawn Kimel is serving as the
President of K2 GenPar and K2 & Associates Investment Management Inc., an
Ontario corporation which provides K2 GenPar with investment advice and research
and trading strategies. The principal address of Shawn Kimel, which also serves
as his principal office, is 444 Adelaide Street West, Toronto, Ontario M5V 1S7.
Westdale 2000 is an Ontario corporation, the principal business of
which is investments. The principal business of Westdale 2000, which also serves
as its principal office, is 440 Adelaide Street West, Toronto, Ontario M5V 1S7.
Westdale Construction is an Ontario corporation, the principal business
of which is to own, operate, develop, construct, acquire and consult in respect
of real estate in Canada. The principal business of Westdale Construction, which
also serves as its principal office, is 440 Adelaide Street West, Toronto,
Ontario, M5V 1S7.
The principal business of Ronald Kimel is investments. He serves as
President of Westdale 2000 and Westdale Construction. The principal address of
Ronald Kimel, which also serves as his principal office, is 440 Adelaide Street
West, Toronto, Ontario M5V 1S7.
- 8 -
The Reporting Persons may be deemed to comprise a "group" within the
meaning of Section 13(d)(3) of the Act, although neither the fact of this filing
nor any of the information contained herein shall be deemed to be an admission
by any of the Reporting Persons that a "group" exists.
During the last five years, none of the Reporting Persons (i) has been
convicted in a criminal proceeding (excluding traffic violations or similar
misdemeanors) or (ii) was 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.
Item 3. Source and Amount of Funds or Other Consideration.
The source and amount of funds used by K2 Arbitrage to purchase its
Stock is Working Capital of K2 Arbitrage. The source and amount of funds used by
Westdale 2000 to purchase its Stock is Working Capital of Westdale 2000. As used
herein, the term "Working Capital" includes income from the business operations
of the entity plus sums borrowed from, among other sources, banks and brokerage
firm margin accounts, to operate such business in general.
Item 4. Purpose of Transaction.
Pursuant to a series of transactions ending on August 22, 2002, K2
Arbitrage has purchased for an aggregate of $3,087,357 in cash an aggregate of
1,266,300 shares of Stock. The shares of Stock were acquired by K2 Arbitrage for
the purpose of investment.
Pursuant to a series of transactions ending on August 22, 2002,
Westdale 2000 has purchased for an aggregate of $501,410 in cash an aggregate of
203,000 shares of Stock. The shares of Stock purchased by Westdale 2000 were
acquired for the purpose of investment.
Each of the Reporting Persons currently expects to vote against the
Alliance Entertainment merger. In addition, each of the Reporting Persons
currently expects to vote in favor of the slate of directors nominated by the MM
Companies group in that certain proxy statement filed on August 9, 2002.
Subject to the foregoing, the Reporting Persons intend to continue to
evaluate the Issuer's business, prospects and financial condition, the market
for the Stock, monetary and stock market conditions and other further
developments. As a part of such evaluation, one or more of the Reporting Persons
may participate in meetings or hold discussions with the Issuer's management,
other security holders of the Issuer and other persons in which the Reporting
Persons may express their views with respect to potential changes in the
operations, assets, capital structure or ownership of the Issuer. Such
expression of views may relate to one or more of the transactions specified in
clauses (a) through (j) of Item 4 of the Schedule 13D form.
Depending upon, among other things, the factors set forth above, the
Reporting Persons reserve the right to (i) dispose of all or part of their
investment in the Stock at any time, (ii) acquire additional equity securities
of the Issuer or its affiliates by tender offer, in the open market, in private
transactions or otherwise, (iii) propose a merger or other business combination
- 9 -
with the Issuer or its affiliates, (iv) seek control of the Issuer by stock
ownership or otherwise, or (v) take any other action with respect to the Issuer.
Except as set forth in this Item 4, the Reporting Persons have no
present plans or proposals that relate to or that would result in any of the
following actions:
(a) The acquisition by any person of additional securities of the
Issuer, or the disposition of securities of the Issuer;
(b) An extraordinary corporate transaction, such as a merger,
reorganization or liquidation, involving the Issuer or any of its
subsidiaries;
(c) A sale or transfer of a material amount of assets of the Issuer
or any of its subsidiaries;
(d) Any change in the present board of directors or management of the
Issuer, including any plans or proposals to change the number or
term of directors or to fill any existing vacancies on the board;
(e) Any material change in the present capitalization or dividend
policy of the Issuer;
(f) Any other material change in the Issuer's business or corporate
structure;
(g) Changes in the Issuer's charter, bylaws or instruments
corresponding thereto or other actions which may impede the
acquisition of control of the Issuer by any person;
(h) Causing a class of securities of the Issuer to be delisted from a
national securities exchange or to cease to be authorized to be
quoted in an inter-dealer quotation system of a registered
national securities association;
(i) A class of equity securities of the Issuer becoming eligible for
termination of registration pursuant to Section 12(g)(4) of the
Act; or
(j) Any action similar to any of those enumerated above.
Item 5. Interest in Securities of the Issuer.
Pursuant to Rule 13d-3(a), at the close of business on August 27, 2002,
K2 Arbitrage may be deemed to be the beneficial owner of 1,266,300 shares of the
Stock, which constitute approximately 5.6% of the 22,758,322 shares of Stock
outstanding on July 31, 2002, according to the Issuer's Form 10-Q filed on
August 14, 2002 (the "Outstanding Shares"). K2 Arbitrage, either directly or
indirectly, has or shares the power to vote or to direct the vote and to dispose
or to direct the disposition of, such shares of Stock.
At the close of business on August 27, 2002, each of K2 GenPar, as the
sole general partner of K2 Arbitrage, and Shawn Kimel, as the President of K2
GenPar, pursuant to Rule 13d-3 of the Act, may be deemed to be the beneficial
owner of 1,266,300 shares of the Stock, which constitute approximately 5.6% of
the Outstanding Shares. Each of such persons, either directly or indirectly, may
have or share the power to vote or to direct the vote and to dispose of or to
direct the disposition of, such shares of Stock.
- 10 -
Pursuant to Rule 13d-3(a), at the close of business on August 27, 2002,
Westdale 2000 may be deemed to be the beneficial owner of 203,000 shares of the
Stock, which constitute approximately 0.9% of the Outstanding Shares. Westdale
2000, either directly or indirectly, may have or share the power to vote or
direct the vote and to dispose of or to direct the disposition of, such shares
of Stock.
At the close of business on August 27, 2002, each of Westdale
Construction, as the sole shareholder of Westdale 2000, and Ronald Kimel, as the
President of Westdale 2000 and Westdale Construction, may be deemed to be the
beneficial owner of 203,000 shares of the Stock, which constitute approximately
0.9% of the Outstanding Shares. Each of such persons, either directly or
indirectly, may have or share the power to vote or direct the vote and to
dispose of or to direct the disposition of, such shares of Stock.
Other than as set forth above, none of the Reporting Persons named
herein is the beneficial owner of any shares of the Stock.
During the last 60 days, K2 Arbitrage has purchased shares of the Stock
in open market transactions on the Nasdaq National Market as follows:
--------------------------------------------------------------------------------------------------------------------
Date Transaction Shares Price ($)
---- ----------- ------ ---------
--------------------------------------------------------------------------------------------------------------------
6/28/02 Purchase 1,000 2.4437
--------------------------------------------------------------------------------------------------------------------
6/28/02 Purchase 38,500 2.4604
--------------------------------------------------------------------------------------------------------------------
7/1/02 Purchase 24,900 2.2880
--------------------------------------------------------------------------------------------------------------------
7/1/02 Purchase 35,100 2.4236
--------------------------------------------------------------------------------------------------------------------
7/2/02 Purchase 4,600 2.4136
--------------------------------------------------------------------------------------------------------------------
7/2/02 Purchase 5,000 2.4136
--------------------------------------------------------------------------------------------------------------------
7/2/02 Purchase 9,240 2.4137
--------------------------------------------------------------------------------------------------------------------
7/2/02 Purchase 55,250 2.4336
--------------------------------------------------------------------------------------------------------------------
7/3/02 Purchase 485 2.4036
--------------------------------------------------------------------------------------------------------------------
7/3/02 Purchase 24,035 2.4390
--------------------------------------------------------------------------------------------------------------------
7/5/02 Purchase 200 2.4136
--------------------------------------------------------------------------------------------------------------------
7/5/02 Purchase 1,000 2.4137
--------------------------------------------------------------------------------------------------------------------
7/8/02 Purchase 600 2.4620
--------------------------------------------------------------------------------------------------------------------
7/8/02 Purchase 1,000 2.4236
--------------------------------------------------------------------------------------------------------------------
7/8/02 Purchase 2,300 2.4237
--------------------------------------------------------------------------------------------------------------------
7/9/02 Purchase 15,000 2.4133
--------------------------------------------------------------------------------------------------------------------
7/9/02 Purchase 15,800 2.4143
--------------------------------------------------------------------------------------------------------------------
7/9/02 Purchase 19,100 2.4126
--------------------------------------------------------------------------------------------------------------------
- 11 -
--------------------------------------------------------------------------------------------------------------------
7/9/02 Purchase 28,500 2.4140
--------------------------------------------------------------------------------------------------------------------
7/10/02 Purchase 5,000 2.4136
--------------------------------------------------------------------------------------------------------------------
7/10/02 Purchase 5,940 2.4108
--------------------------------------------------------------------------------------------------------------------
7/10/02 Purchase 9,000 2.4047
--------------------------------------------------------------------------------------------------------------------
7/10/02 Purchase 33,200 2.4118
--------------------------------------------------------------------------------------------------------------------
7/11/02 Purchase 110,600 2.4223
--------------------------------------------------------------------------------------------------------------------
7/15/02 Purchase 15,000 2.4136
--------------------------------------------------------------------------------------------------------------------
7/15/02 Purchase 18,163 2.4136
--------------------------------------------------------------------------------------------------------------------
7/15/02 Purchase 25,000 2.4256
--------------------------------------------------------------------------------------------------------------------
7/16/02 Purchase 41,600 2.4240
--------------------------------------------------------------------------------------------------------------------
7/17/02 Sell (10,000) 2.4763
--------------------------------------------------------------------------------------------------------------------
7/17/02 Purchase 20,000 2.4437
--------------------------------------------------------------------------------------------------------------------
7/18/02 Purchase 2,000 2.4537
--------------------------------------------------------------------------------------------------------------------
7/19/02 Purchase 6,365 2.4606
--------------------------------------------------------------------------------------------------------------------
7/23/02 Purchase 27,100 2.4518
--------------------------------------------------------------------------------------------------------------------
7/24/02 Purchase 20,400 2.4437
--------------------------------------------------------------------------------------------------------------------
7/25/02 Purchase 5,400 2.4537
--------------------------------------------------------------------------------------------------------------------
7/26/02 Purchase 13,179 2.4537
--------------------------------------------------------------------------------------------------------------------
7/30/02 Purchase 10,000 2.4837
--------------------------------------------------------------------------------------------------------------------
8/2/02 Purchase 14,200 2.4980
--------------------------------------------------------------------------------------------------------------------
8/19/02 Purchase 29,150 2.4469
--------------------------------------------------------------------------------------------------------------------
8/19/02 Purchase 100,000 2.4700
--------------------------------------------------------------------------------------------------------------------
8/22/02 Purchase 5,000 2.4100
During the last 60 days, Westdale 2000 has purchased shares of the
Stock in open market transactions on the Nasdaq National Market as follows:
----------------------------------------------------------- --------------------------- ----------------------------
Date Transaction Shares Price ($)
---- ----------- ------ ---------
--------------------------------------------------------------------------------------------------------------------
8/19/02 Purchase 203,000 2.4700
--------------------------------------------------------------------------------------------------------------------
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect
to Securities of the Issuer.
Except as set forth in Item 4 above, to the best knowledge of the
Reporting Persons, there are no contracts, arrangements, understandings or
relationships (legal or otherwise) among the Reporting Persons or between the
Reporting Persons and any other person with respect to any securities of the
Issuer, including but not limited to, transfer or voting of any of the
securities of
- 12 -
the Issuer, finder's fees, joint ventures, loan or option arrangements, puts or
calls, guarantees of profits, division of profits or loss, or the giving or
withholding of proxies, or a pledge or contingency the occurrence of which would
give another person voting power over the securities of the Issuer.
Item 7. Material to be Filed as Exhibits.
No exhibits.
[The remainder of this page is intentionally left blank.]
- 13 -
SIGNATURE
After reasonable inquiry and to the best of the knowledge and belief of
the undersigned, the undersigned certify that the information set forth in this
statement is true, complete and correct.
Pursuant to Rule 13d-1(k)(1)(ii) of Regulation 13D-G of the General
Rules and Regulations of the Securities and Exchange Commission under the
Securities Exchange Act of 1934, as amended, the undersigned agree that the
attached statement is filed on behalf of each of them in the capacities set
forth below.
Each of the undersigned Reporting Persons hereby constitutes and
appoints Shawn Kimel as attorney and agent of the undersigned, to sign and file
with the Securities and Exchange Commission under Regulation 13 D-G of the
Securities Exchange Act of 1934, as amended, any and all amendments and exhibits
to this Schedule 13D, with full power and authority to do and perform any and
all acts and things whatsoever requisite or desirable in his sole discretion.
- 14 -
Dated: August 27, 2002
THE K2 ARBITRAGE FUND L.P., an Ontario limited partnership
By: K2 GenPar, Inc.
Its: General Partner
By: /s/ Shawn Kimel
----------------------------------
Shawn Kimel, President
K2 GENPAR, INC., an Ontario corporation
By: /s/ Shawn Kimel
---------------------------------------
Shawn Kimel, President
/s/ Shawn Kimel
--------------------------------------------------------------
Shawn Kimel
WESTDALE 2000, INC., An Ontario corporation
By: /s/ Ronald Kimel
------------------------------------------------------
Ronald Kimel, President
WESTDALE CONSTRUCTION, INC., an Ontario corporation
By: /s/ Ronald Kimel
------------------------------------------------------
Ronald Kimel, President
/s/ Ronald Kimel
--------------------------------------------------------------
Ronald Kimel
- 15 -