0000950136-01-501611.txt : 20011029 0000950136-01-501611.hdr.sgml : 20011029 ACCESSION NUMBER: 0000950136-01-501611 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20011023 GROUP MEMBERS: INVESCO PRIVATE CAPITAL GROUP MEMBERS: IPC DIRECT ASSOCIATES SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: HEALTH GRADES INC CENTRAL INDEX KEY: 0001027915 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-OFFICES & CLINICS OF DOCTORS OF MEDICINE [8011] IRS NUMBER: 621623449 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-58765 FILM NUMBER: 1763962 BUSINESS ADDRESS: STREET 1: 44 UNION BLVD STREET 2: STE 600 CITY: LAKEWOOD STATE: CO ZIP: 80228 BUSINESS PHONE: 3037160041 MAIL ADDRESS: STREET 1: 44 UNION BOULEVARD STREET 2: SUITE 600 CITY: LAKEWOOD STATE: CO ZIP: 80228 FORMER COMPANY: FORMER CONFORMED NAME: HEALTHGRADES COM INC DATE OF NAME CHANGE: 20000118 FORMER COMPANY: FORMER CONFORMED NAME: SPECIALTY CARE NETWORK INC DATE OF NAME CHANGE: 19961210 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: INVESCO PRIVATE CAPITAL INC CENTRAL INDEX KEY: 0001128452 STANDARD INDUSTRIAL CLASSIFICATION: [] FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 1315 PEACHTREE STREET STREET 2: SUITE 500 CITY: ATLANTA STATE: GA ZIP: 30309 BUSINESS PHONE: 2122789000 MAIL ADDRESS: STREET 1: 1315 PEACHTREE STREET STREET 2: SUITE 500 CITY: ATLANTA STATE: GA ZIP: 30309 SC 13D/A 1 file001.txt AMENDMENT NO. 3 TO SCHEDULE 13D ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 SCHEDULE 13D UNDER THE SECURITIES EXCHANGE ACT OF 1934 (AMENDMENT NO. 3)* Health Grades, Inc. -------------------------------------------------------------------------------- (Name of Issuer) Common Stock -------------------------------------------------------------------------------- (Title of Class of Securities) 84748M 10 2 -------------------------------------------------------------------------------- (CUSIP Number) Deborah O'Neal-Johnson INVESCO Institutional (N.A.), Inc. 1315 Peachtree Street Atlanta, Georgia 30309 (404) 892-0896 -------------------------------------------------------------------------------- (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) October 9, 2001 -------------------------------------------------------------------------------- (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 that is the subject of this Schedule 13D, and is filing this schedule because of ss.ss.240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. [ ] * 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).
CUSIP No.: 84748M 10 2 ------------------------------------------------------------------------------------------------------------------------- 1. Names of Reporting Persons. I.R.S. Identification Nos. of above persons (entities only). CHANCELLOR V, L.P. ------------------------------------------------------------------------------------------------------------------------- 2. Check the Appropriate Box if a Member of a Group (See Instructions): (a) [ ] (b) [ X ] ------------------------------------------------------------------------------------------------------------------------- 3. SEC Use Only: ------------------------------------------------------------------------------------------------------------------------- 4. Source of Funds (See Instructions): WC ------------------------------------------------------------------------------------------------------------------------- 5. Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e): [ ] ------------------------------------------------------------------------------------------------------------------------- 6. Citizenship or Place of Organization: DELAWARE ------------------------------------------------------------------------------------------------------------------------- Number of 7. Sole Voting Power 0 Shares -------------------------------------------------------------------------------------------------- Beneficially 8. Shared Voting Power 13,976,153 Owned by -------------------------------------------------------------------------------------------------- Each 9. Sole Dispositive Power 0 Reporting -------------------------------------------------------------------------------------------------- Person With 10. Shared Dispositive Power 13,976,153 ------------------------------------------------------------------------------------------------------------------------- 11. Aggregate Amount Beneficially Owned by Each Reporting Person: 13,976,153 ------------------------------------------------------------------------------------------------------------------------- 12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions): [ ] ------------------------------------------------------------------------------------------------------------------------- 13. Percent of Class Represented by Amount in Row (11): 38.42% ------------------------------------------------------------------------------------------------------------------------- 14. Type of Reporting Person (See Instructions): PN
CUSIP No.: 84748M 10 2 ------------------------------------------------------------------------------------------------------------------------- 1. Names of Reporting Persons. I.R.S. Identification Nos. of above persons (entities only). IPC DIRECT ASSOCIATES V, L.L.C. ------------------------------------------------------------------------------------------------------------------------- 2. Check the Appropriate Box if a Member of a Group (See Instructions): (a) [ ] (b) [ X ] ------------------------------------------------------------------------------------------------------------------------- 3. SEC Use Only: ------------------------------------------------------------------------------------------------------------------------- 4. Source of Funds (See Instructions): WC ------------------------------------------------------------------------------------------------------------------------- 5. Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e): [ ] ------------------------------------------------------------------------------------------------------------------------- 6. Citizenship or Place of Organization: DELAWARE ------------------------------------------------------------------------------------------------------------------------- Number of 7. Sole Voting Power 0 Shares ------------------------------------------------------------------------------------------------ Beneficially 8. Shared Voting Power 13,976,153 Owned by ------------------------------------------------------------------------------------------------ Each 9. Sole Dispositive Power 0 Reporting ------------------------------------------------------------------------------------------------ Person With 10. Shared Dispositive Power 13,976,153 ------------------------------------------------------------------------------------------------------------------------- 11. Aggregate Amount Beneficially Owned by Each Reporting Person: 13,976,153 ------------------------------------------------------------------------------------------------------------------------- 12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions): [ ] ------------------------------------------------------------------------------------------------------------------------- 13. Percent of Class Represented by Amount in Row (11): 38.42% ------------------------------------------------------------------------------------------------------------------------- 14. Type of Reporting Person (See Instructions): OO
CUSIP No.: 84748M 10 2 ------------------------------------------------------------------------------------------------------------------------- 1. Names of Reporting Persons. I.R.S. Identification Nos. of above persons (entities only). INVESCO PRIVATE CAPITAL, INC. ------------------------------------------------------------------------------------------------------------------------- 2. Check the Appropriate Box if a Member of a Group (See Instructions): (a) [ ] (b) [ X ] ------------------------------------------------------------------------------------------------------------------------- 3. SEC Use Only: ------------------------------------------------------------------------------------------------------------------------- 4. Source of Funds (See Instructions): WC ------------------------------------------------------------------------------------------------------------------------- 5. Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e): [ ] ------------------------------------------------------------------------------------------------------------------------- 6. Citizenship or Place of Organization: DELAWARE ------------------------------------------------------------------------------------------------------------------------- Number of 7. Sole Voting Power 0 Shares -------------------------------------------------------------------------------------------------- Beneficially 8. Shared Voting Power 13,976,153 Owned by -------------------------------------------------------------------------------------------------- Each 9. Sole Dispositive Power 0 Reporting -------------------------------------------------------------------------------------------------- Person With 10. Shared Dispositive Power 13,976,153 ------------------------------------------------------------------------------------------------------------------------- 11. Aggregate Amount Beneficially Owned by Each Reporting Person: 13,976,153 ------------------------------------------------------------------------------------------------------------------------- 12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions): [ ] ------------------------------------------------------------------------------------------------------------------------- 13. Percent of Class Represented by Amount in Row (11): 38.42% ------------------------------------------------------------------------------------------------------------------------- 14. Type of Reporting Person (See Instructions): CO
This Amendment No. 3 amends and supplements the Schedule 13D originally filed on March 27, 2000 (the "Schedule 13D"), as amended by Amendment No. 1 to the Schedule 13D filed on March 26, 2001 ("Amendment No. 1") and by Amendment No.2 to the Schedule 13D filed on April 25, 2001 ("Amendment No.2), by the undersigned relating to the shares of common stock, $0.001 par value per share, (the "Common Stock") of Health Grades, Inc. (the "Company"). Unless indicated otherwise, all defined terms used herein shall have the respective meanings ascribed to them in the Schedule 13D. ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION Item 3 of the Schedule 13D is hereby amended and supplemented by adding the following at the end thereof: On October 9, 2001 the Company exercised the put option from Chancellor in accordance with the agreement between the Company, Chancellor and another investor, executed on April 16, 2001 to provide equity financing to the Company of up to $2,000,000. Under the agreement, the Company has sold Chancellor 7,789,333 shares of Common Stock at $0.15 per share for an aggregate purchase price of $1,168,400, the maximum amount under the agreement and issued to Chancellor a warrant to purchase 204,470 shares of Common Stock at an exercise price of $0.15 per share for six years. ITEM 5. INTEREST IN SECURITIES OF THE ISSUER Item 5 of the Schedule 13D is hereby amended and restated in its entirety as follows: TOTAL OUTSTANDING SHARES. According to information provided to the Filing Persons by the Company, the number of shares of Common Stock outstanding on October 10, 2001 was 34,606,758 and the number of shares of Common Stock subject to warrants held by Chancellor was 1,971,820 for a total of 36,374,108 shares. CHANCELLOR. As of the date of filing of this Schedule 13D, Chancellor is the holder of record of 13,976,153 shares of Common Stock of the Company, consisting of 12,004,333 shares of Common Stock and warrants to purchase 1,971,820 shares of Common Stock exercisable within 60 days hereof, representing approximately 38.42% of the outstanding Common Stock, and has shared voting and investment power with respect to such securities. IPC. IPC as sole General Partner of Chancellor, may also be deemed to have shared voting and investment power with respect to such securities. IPC disclaims beneficial ownership of such securities except to the extent of its pecuniary interest therein. PRIVATE CAPITAL. Under the investment management agreement with Chancellor, Private Capital has shared dispositive power and voting power with respect to the securities held by Chancellor. Private Capital disclaims beneficial ownership of such securities except to the extent of its pecuniary interest therein. ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE ISSUER Item 6 of the Schedule 13D is hereby amended and supplemented by adding the following at the end thereof: On October 9, 2001, the Company exercised the put option from Chancellor and sold 7,789,333 shares of Common Stock to Chancellor for an aggregate purchase price of $1,168,400, the maximum amount under the put option. The shares were sold at $0.15 per share. In addition, the Company issued Chancellor a warrant to purchase 204,470 shares of Common Stock at an exercise price of $0.15 per share for six years. EXHIBIT INDEX NO. DESCRIPTION OF EXHIBIT --- ---------------------- Exhibit A Agreement of Joint Filing, dated October 22, 2001, among the Filing Persons. Exhibit B Co-Sale and Voting Agreement, dated March 17, 2000, previously filed. Exhibit C Letter Agreement, dated April 16, 2001, previously filed. SIGNATURE After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this amended statement is true, complete and correct. Date: October 22, 2001 CHANCELLOR V, L.P. By its general partner: IPC Direct Associates V, L.L.C. By its Managing Member: INVESCO Private Capital, Inc. By: /s/ Alan Kittner ------------------------------- Name: Alan Kittner Its: Managing Director IPC DIRECT ASSOCIATES V, L.L.C. By its Managing Member: INVESCO Private Capital, Inc. By: /s/ Alan Kittner ------------------------------- Name: Alan Kittner Its: Managing Director INVESCO PRIVATE CAPITAL, INC. By: /s/ Alan Kittner ------------------------------- Name: Alan Kittner Its: Managing Director EX-99.A 3 file002.txt AGREEMENT REGARDING JOINT FILING EXHIBIT A AGREEMENT REGARDING JOINT FILING In accordance with Rule 13d-1(k) under the Securities Exchange Act of 1934, as amended, the undersigned hereby agrees to the joint filing on behalf of each of them of a Statement on Schedule 13D as promulgated by the SEC, including any pertinent amendments thereto, and including, where applicable, additions or deletions to the group represented by the undersigned, with respect to the Common Stock, $0.001 par value per share, of Health Grades, Inc., and that this Agreement be included as an Exhibit to such filing. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which together shall be deemed to constitute one and the same Agreement. IN WITNESS WHEREOF, each of the undersigned hereby executes this Agreement as of October 22, 2001. CHANCELLOR V, L.P. By its general partner: IPC Direct Associates V, L.L.C. By its Managing Member: INVESCO Private Capital, Inc. By: /s/ Alan Kittner ------------------------------- Name: Alan Kittner Its: Managing Director IPC DIRECT ASSOCIATES V, L.L.C. By its Managing Member: INVESCO Private Capital, Inc. By: /s/ Alan Kittner ------------------------------- Name: Alan Kittner Its: Managing Director INVESCO PRIVATE CAPITAL, INC. By: /s/ Alan Kittner ------------------------------- Name: Alan Kittner Its: Managing Director