0000950136-01-501683.txt : 20011101
0000950136-01-501683.hdr.sgml : 20011101
ACCESSION NUMBER: 0000950136-01-501683
CONFORMED SUBMISSION TYPE: SC 13D/A
PUBLIC DOCUMENT COUNT: 1
FILED AS OF DATE: 20011030
GROUP MEMBERS: ESSEX WOODLANDS HEALTH VENTURES FUND IV, LP
GROUP MEMBERS: ESSEX WOODLANDS HEALTH VENTURES IV, LLC
GROUP MEMBERS: JAMES L. CURRIE
GROUP MEMBERS: MARC S. SANDROFF
GROUP MEMBERS: MARTIN P. SUTER
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: 1770086
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: ESSEX WOODLANDS HEALTH VENTURES FUND IV LLC
CENTRAL INDEX KEY: 0001081190
STANDARD INDUSTRIAL CLASSIFICATION: []
IRS NUMBER: 760573320
STATE OF INCORPORATION: DE
FISCAL YEAR END: 1231
FILING VALUES:
FORM TYPE: SC 13D/A
BUSINESS ADDRESS:
STREET 1: 270 BUCKTHORNE PLACE
STREET 2: SUITE 170
CITY: WOODLANDS
STATE: TX
ZIP: 77380
BUSINESS PHONE: 2813679999
MAIL ADDRESS:
STREET 1: 2170 BUCKTHORNE PLACE
STREET 2: SUITE 170
CITY: WOODLANDS
STATE: TX
ZIP: 77380
SC 13D/A
1
file001.txt
AMENDMENT TO SCHEDULE 13D
================================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. 2)*
Health Grades, Inc.
--------------------------------------------------------------------------------
(Name of Issuer)
Common Stock
--------------------------------------------------------------------------------
(Title of Class of Securities)
84748M 10 2
--------------------------------------------------------------------------------
(CUSIP Number)
Marc S. Sandroff
Essex Woodlands Health Ventures
190 S. LaSalle, Suite 2800
Chicago, Illinois 60603
(312) 444-6040
--------------------------------------------------------------------------------
(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).
ESSEX WOODLANDS HEALTH VENTURES FUND IV, 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 9,947,430
Shares ------------------------------------------------------------------
Beneficially 8. Shared Voting Power -0-
Owned by ------------------------------------------------------------------
Each 9. Sole Dispositive Power 9,947,430
Reporting ------------------------------------------------------------------
Person With 10. Shared Dispositive Power -0-
--------------------------------------------------------------------------------
11. Aggregate Amount Beneficially Owned by Each Reporting Person:
9,947,430
--------------------------------------------------------------------------------
12. Check if the Aggregate Amount in Row (11) Excludes Certain
Shares (See Instructions):
[ ]
--------------------------------------------------------------------------------
13. Percent of Class Represented by Amount in Row (11):
27.62%
--------------------------------------------------------------------------------
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).
ESSEX WOODLANDS HEALTH VENTURES IV, 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 9,947,430
Shares ------------------------------------------------------------------
Beneficially 8. Shared Voting Power -0-
Owned by ------------------------------------------------------------------
Each 9. Sole Dispositive Power 9,947,430
Reporting ------------------------------------------------------------------
Person With 10. Shared Dispositive Power -0-
--------------------------------------------------------------------------------
11. Aggregate Amount Beneficially Owned by Each Reporting Person:
9,947,430
--------------------------------------------------------------------------------
12. Check if the Aggregate Amount in Row (11) Excludes Certain
Shares (See Instructions):
[ ]
--------------------------------------------------------------------------------
13. Percent of Class Represented by Amount in Row (11):
27.62%
--------------------------------------------------------------------------------
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).
JAMES L. CURRIE
--------------------------------------------------------------------------------
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):
SC
--------------------------------------------------------------------------------
5. Check if Disclosure of Legal Proceedings Is Required Pursuant
to Items 2(d) or 2(e):
[ ]
--------------------------------------------------------------------------------
6. Citizenship or Place of Organization:
UNITED STATES
--------------------------------------------------------------------------------
Number of 7. Sole Voting Power 0
Shares ------------------------------------------------------------------
Beneficially 8. Shared Voting Power 9,947,430
Owned by ------------------------------------------------------------------
Each 9. Sole Dispositive Power 0
Reporting ------------------------------------------------------------------
Person With 10. Shared Dispositive Power 9,947,430
--------------------------------------------------------------------------------
11. Aggregate Amount Beneficially Owned by Each Reporting Person:
9,947,430
--------------------------------------------------------------------------------
12. Check if the Aggregate Amount in Row (11) Excludes Certain
Shares (See Instructions):
[ ]
--------------------------------------------------------------------------------
13. Percent of Class Represented by Amount in Row (11):
27.62%
--------------------------------------------------------------------------------
14. Type of Reporting Person (See Instructions):
IN
--------------------------------------------------------------------------------
CUSIP No.: 84748M 10 2
--------------------------------------------------------------------------------
1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
MARC S. SANDROFF
--------------------------------------------------------------------------------
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:
UNITED STATES
--------------------------------------------------------------------------------
Number of 7. Sole Voting Power 0
Shares ------------------------------------------------------------------
Beneficially 8. Shared Voting Power 9,947,430
Owned by ------------------------------------------------------------------
Each 9. Sole Dispositive Power 0
Reporting ------------------------------------------------------------------
Person With 10. Shared Dispositive Power 9,947,430
--------------------------------------------------------------------------------
11. Aggregate Amount Beneficially Owned by Each Reporting Person:
9,947,430
--------------------------------------------------------------------------------
12. Check if the Aggregate Amount in Row (11) Excludes Certain
Shares (See Instructions):
[ ]
--------------------------------------------------------------------------------
13. Percent of Class Represented by Amount in Row (11):
27.62%
--------------------------------------------------------------------------------
14. Type of Reporting Person (See Instructions):
IN
--------------------------------------------------------------------------------
CUSIP No.: 84748M 10 2
--------------------------------------------------------------------------------
1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
MARTIN P. SUTTER
--------------------------------------------------------------------------------
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:
UNITED STATES
--------------------------------------------------------------------------------
Number of 7. Sole Voting Power 0
Shares ------------------------------------------------------------------
Beneficially 8. Shared Voting Power 9,947,430
Owned by ------------------------------------------------------------------
Each 9. Sole Dispositive Power 0
Reporting ------------------------------------------------------------------
Person With 10. Shared Dispositive Power 9,947,430
--------------------------------------------------------------------------------
11. Aggregate Amount Beneficially Owned by Each Reporting Person:
9,947,430
--------------------------------------------------------------------------------
12. Check if the Aggregate Amount in Row (11) Excludes Certain
Shares (See Instructions):
[ ]
--------------------------------------------------------------------------------
13. Percent of Class Represented by Amount in Row (11):
27.62%
--------------------------------------------------------------------------------
14. Type of Reporting Person (See Instructions):
IN
--------------------------------------------------------------------------------
This Amendment No. 2 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 May 1, 2001 ("Amendment No. 1") 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 Essex Fund
in accordance with the agreement between the Company, Essex Fund 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 Essex Fund
5,544,000 shares of Common Stock at $0.15 per share for an aggregate purchase
price of $831,600, the maximum amount under the agreement, and issued to Essex
Fund a warrant to purchase 145,530 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 Essex Fund was 1,403,430 for a total of 36,010,188 shares
outstanding.
ESSEX FUND. As of the date of filing of this Schedule 13D, Essex Fund is the
holder of record of 9,947,430 shares of Common Stock of the Company, consisting
of 8,544,000 shares of Common Stock and warrants to purchase 1,403,430 shares of
Common Stock exercisable within 60 days hereof, representing approximately
27.62% of the outstanding Common Stock, and has sole voting and investment power
with respect to such securities.
ESSEX L.L.C. ESSEX L.L.C., as sole General Partner of Essex Fund, may also be
deemed to have sole voting and investment power with respect to such securities.
Essex L.L.C. disclaims beneficial ownership of such securities except to the
extent of its pecuniary interest therein.
MESSRS. CURRIE, SANDROFF AND SUTTER. Under the operating agreement of Essex
L.L.C., Messrs. Currie, Sandroff and Sutter have the power by unanimous consent
(i) to cause the Essex Fund to buy and sell marketable securities of portfolio
companies and (ii) to direct the voting of such securities. As a result, Messrs.
Currie, Sandroff and Sutter may also be deemed to have shared dispositive power
and shared voting power with respect to the securities held by Essex Fund.
Messrs. Currie, Sandroff and Sutter disclaim beneficial ownership of such
securities except to the extent of their respective pecuniary interests therein.
On October 9, 2001, Essex Fund acquired a warrant to purchase 145,530
shares of Common Stock from the Company.
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 Essex
Fund and sold 5,544,000 shares of Common Stock to Essex Fund for an aggregate
purchase price of $831,600, the maximum amount under the put option. The shares
were sold at $0.15 per share. In addition, the Company issues Essex Fund a
warrant to purchase 145,530 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 30, 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.
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 30, 2001.
ESSEX WOODLANDS HEALTH VENTURES FUND IV, L.P.
By its general partner:
Essex Woodlands Health Ventures IV, L.L.C.
By: /s/ Marc S. Sandroff
-------------------------------
Name: Marc S. Sandroff
Its: Managing Director
ESSEX WOODLANDS HEALTH VENTURES IV, L.L.C.
By: /s/ Marc S. Sandroff
-------------------------------
Name: Marc S. Sandroff
Its: Managing Director
/s/ James L. Currie
----------------------------------
James L. Currie
/s/ Marc S. Sandroff
----------------------------------
Marc S. Sandroff
/s/ Martin P. Sutter
----------------------------------
Martin P. Sutter
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 30, 2001
ESSEX WOODLANDS HEALTH VENTURES FUND IV, L.P.
By its general partner:
Essex Woodlands Health Ventures IV, L.L.C.
By: /s/ Marc S. Sandroff
--------------------------------
Name: Marc S. Sandroff
Its: Managing Director
ESSEX WOODLANDS HEALTH VENTURES IV, L.L.C.
By: /s/ Marc S. Sandroff
--------------------------------
Name: Marc S. Sandroff
Its: Managing Director
/s/ James L. Currie
-----------------------------------
James L. Currie
/s/ Marc S. Sandroff
-----------------------------------
Marc S. Sandroff
/s/ Martin P. Sutter
-----------------------------------
Martin P. Sutter