UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
AMENDMENT NO. 6 TO
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
DERMA SCIENCES, INC.
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(Name of Issuer)
COMMON STOCK, $.01 PAR VALUE PER SHARE
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(Title of Class of Securities)
249827106
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(CUSIP Number)
Bruce F. Wesson
Senior Managing Member
Claudius, L.L.C.
610 Fifth Avenue, 5th Floor
New York, NY 10020
(212) 218-4990
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(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
FEBRUARY 25, 2002
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(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 Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following box
[ ].
Note: Schedules filed in paper format shall include a signed original and five
copies with the schedule, including all exhibits. See Rule 13d-7(b) for other
parties to whom copies are to be sent.
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, as amended (the "Act") or otherwise subject to the liabilities of that
section of the Act but shall be subject to all provisions of the Act (however,
see the Notes).
Page 1 of 9 Pages
Page 2 of 9 of the initial Schedule 13D pertaining to the Common
Shares of Derma Sciences, Inc., a Pennsylvania corporation, filed with the
Securities and Exchange Commission ("SEC") on February 6, 1998 for an event on
January 23, 1998 and subsequently amended on September 18, 1998 by Amendment
No. 1 and on August 24, 1999 by Amendment No.2, and on January 10, 2000 by
Amendment No. 3 and on August 7, 2000 by Amendment No. 4, and on March 19, 2001
by Amendment No. 5, is hereby further amended to read in its entirety as
follows:
SCHEDULE 13D
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CUSIP NO. 249827106 PAGE 2 OF 9 PAGES
------------- --- ---
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Galen Partners III, L.P.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)[ ]
(b)|X|
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
WC
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(D) OR 2(E) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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7 SOLE VOTING POWER
NUMBER OF 4,145,640 (see Item 5(a))
--------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY 0
--------------------------------------------------
OWNED BY 9 SOLE DISPOSITIVE POWER
EACH 4,145,640
--------------------------------------------------
REPORTING 10 SHARED DISPOSITIVE POWER
PERSON WITH 0
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,145,640
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
59.46%
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14 TYPE OF REPORTING PERSON
PN
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2
Page 3 of 9 of the Schedule 13D, as amended, is hereby further amended
to read in its entirety as follows:
SCHEDULE 13D
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CUSIP NO. 249827106 PAGE 3 OF 9 PAGES
------------- --- ---
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Galen Partners International III, L.P.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
WC
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(D) OR 2(E) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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7 SOLE VOTING POWER
NUMBER OF 401,278 (see Item 5(a))
---------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY 0
---------------------------------------------------
OWNED BY 9 SOLE DISPOSITIVE POWER
EACH 401,278
---------------------------------------------------
REPORTING 10 SHARED DISPOSITIVE POWER
PERSON WITH 0
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
401,278
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.76%
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14 TYPE OF REPORTING PERSON
PN
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3
Page 4 of 9 of the Schedule 13D, as amended, is hereby further amended
to read in its entirety as follows:
SCHEDULE 13D
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CUSIP NO. 249827106 PAGE 4 OF 9 PAGES
------------- --- ---
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Galen Employee Fund III, L.P.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
WC
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(D) OR 2(E) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
7 SOLE VOTING POWER
NUMBER OF 18,260 (see Item 5(a))
---------------------------------------------------
8 SHARED VOTING POWER
SHARES
0
BENEFICIALLY ---------------------------------------------------
9 SOLE DISPOSITIVE POWER
OWNED BY
18,260
EACH ---------------------------------------------------
10 SHARED DISPOSITIVE POWER
REPORTING
0
PERSON WITH
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
18,260
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.26%
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14 TYPE OF REPORTING PERSON
PN
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4
The first paragraph of Item 1 of the Schedule 13D is hereby amended to
read in its entirety as follows:
"This statement covers a total of 4,565,178 fully diluted
shares of Common Stock, $.01 par value per share (the "Common
Stock"), of Derma Sciences, Inc., a Pennsylvania corporation
(the "Issuer"). The Reporting Persons (as defined in Item 2
hereof) as of the date hereof hold an aggregate of (i) 57,000
shares of Common Stock, (ii) 125,000 shares of Series A
Convertible Preferred Stock, $.01 par value per share, of the
Issuer (the "Series A Preferred Shares"), which as of the date
hereof are convertible into an aggregate of 125,000 shares of
Common Stock, (iii) 416,667 shares of Series B Convertible
Preferred Stock, $.01 par value per share, of the Issuer (the
"Series B Preferred Shares"), which as of the date hereof are
convertible into an aggregate of 416,667 shares of Common
Stock, (iv) 619,055 shares of Series C Convertible Preferred
Stock, $.01 par value per share, of the Issuer (the "Series C
Preferred Shares"), which as of the date hereof are
convertible into an aggregate of 619,055 shares of Common
Stock, (v) 1,071,346 shares of Series D Convertible Preferred
Stock, $.01 par value per share, of the Issuer (the "Series D
Preferred Shares"), which as of the date hereof are
convertible into an aggregate of 1, 071,346 shares of Common
Stock, and (vi) 2,276,100 warrants (the "Warrants"), which as
of the date hereof may be exercised for an aggregate of
2,276,100 shares of Common Stock. The Common Stock, Series A
Preferred Shares, Series B Preferred Shares, Series C
Preferred Shares, Series D Preferred Shares and Warrants are
referred to herein, collectively, as the "Securities".
The second paragraph of Item 3 of the Initial Schedule 13D is hereby
amended to read in its entirety as follows:
"75,000 of the Series A Preferred Shares were acquired by the
Reporting Persons through the conversion, effected on or about
January 23, 1998, of certain Convertible Debentures due 1998
of the Issuer ("The Series A Debentures"). The Reporting
Persons acquired Series A Debentures in an aggregate principal
amount of $300,000 for $300,000 in cash. The remaining 50,000
shares of the Series A Preferred Shares were acquired through
converting 50,000 shares of Common Stock, which were
previously acquired by the Reporting Persons at a purchase
price of $5.00 per share for an aggregate amount of $250,000
in cash, into an equal number of shares of Series A Preferred
Stock. The Series B Preferred Shares and certain of the
5
Warrants were acquired by the Reporting Persons through the
conversion, effected on or about September 9, 1998, of certain
Convertible Debentures due 1998 of the Issuer. The Series C
Preferred Shares and certain of the Warrants were acquired by
the Reporting Persons through conversions, effected on or
about July 26, 2000, and on or about February 25, 2002, of
certain convertible bonds of the Issuer. The Series D
Preferred Shares and certain of the Warrants were acquired by
the Reporting Persons trough the conversion effective on or
about February 25, 2002, of certain convertible bonds of the
Issuer. The Reporting Persons acquired 57,000 shares of Common
Stock in consideration of the extension to January 7, 2002 of
the maturity dates of certain convertible bonds of the Issuer.
Each Reporting Person paid its pro rata share of the
acquisition price of the Securities based upon the number of
Common Shares, Series A Preferred Shares, Series B Preferred
Shares, Series C Preferred Shares, Series D Preferred Shares
and Warrants it received."
Item 5, subpart (a) of the Initial Schedule 13D is hereby amended to
read in its entirety as follows:
6
(a) Each Reporting Person owns or has the right to acquire the number
of securities shown opposite its name:
================ ==================== ==================== ================ ================= ==================
(1) (2) (3) (4) (5) (6)
---------------- -------------------- -------------------- ---------------- ----------------- ------------------
Number of Shares Number of
of Common Stock Shares of
into which Series Common Stock
A, Series B, which may be Percentage of
Series C and acquired Outstanding
Series D Preferred pursuant to Total of Shares of Common
Reporting Number of Shares Stock is exercise of Columns (2), Stock (see Note
Person of Common Stock Convertible Warrants (3) and (4) below)
================ ==================== ==================== ================ ================= ==================
Galen 51,764 2,026,941 2,066,935 4,145,640 59.46%
---------------- -------------------- -------------------- ---------------- ----------------- ------------------
Galen Intl 5,009 196,199 200,070 401,278 5.76%
---------------- -------------------- -------------------- ---------------- ----------------- ------------------
GEF 227 8,928 9,105 18,260 0.26%
---------------- -------------------- -------------------- ---------------- ----------------- ------------------
Total 57,000 2,232,068 2,276,110 4,565,178 65.48%
================ ==================== ==================== ================ ================= ==================
Note: The percentages shown in each row of column (6) were calculated,
for each respective row, by (i) adding the total in the bottom row of column (5)
to 2,407,109 (the number of shares of Common Stock outstanding as of
September 30, 2001, as set forth in the Issuer's Quarterly Report on Form 10-QSB
for the quarter then ended (the "Total Adjusted Outstanding Shares"), then
(ii) dividing the amount in column (5) by the Total Adjusted Outstanding Shares,
and then (iii) expressing such quotient in terms of a percentage.
7
SIGNATURE
---------
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in the statement is true, complete and
correct.
Date: March 5, 2002 GALEN PARTNERS III, L.P.
By: Claudius, L.L.C.
By:
------------------------------------
Managing Member
GALEN PARTNERS
INTERNATIONAL III, L.P.
By: Claudius, L.L.C
By:
------------------------------------
Managing Member
GALEN EMPLOYEE FUND III, L.P.
By: Wesson Enterprises, Inc
By:
------------------------------------
President
[Signatures continued on next page.]
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CLAUDIUS, L.L.C.
By:
------------------------------------
Managing Member
WESSON ENTERPRISES, INC.
By:
------------------------------------
President
WILLIAM R. GRANT
By:
------------------------------------
Bruce F. Wesson, Attorney-In-Fact
BRUCE F. WESSON
---------------------------------------
Bruce F. Wesson, Attorney-In-Fact
L. JOHN WILKERSON
By:
------------------------------------
Bruce F. Wesson, Attorney-In-Fact
DAVID JAHNS
By:
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Bruce F. Wesson, Attorney-In-Fact
SRINI CONJEEVARAM
By:
------------------------------------
Bruce F. Wesson, Attorney-In-Fact
ZUBEEN SHROFF
By:
------------------------------------
Bruce F. Wesson, Attorney-In-Fact
9