Schedule 13D Amendment No. 8

-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OzWIU3h40Budv5i+TFc9u5eH0QRgkZI6n9U/5qTSd9DdDSfwVr7Nl7RcAXd+m3R0 xgQ4qhySJ5HgAt1ZcIg/iQ== 0001193125-09-123943.txt : 20090603 0001193125-09-123943.hdr.sgml : 20090603 20090603110044 ACCESSION NUMBER: 0001193125-09-123943 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 3 FILED AS OF DATE: 20090603 DATE AS OF CHANGE: 20090603 GROUP MEMBERS: CHARLES M. B. GOLDMAN GROUP MEMBERS: MILL ROAD CAPITAL GP LLC GROUP MEMBERS: SCOTT P. SCHARFMAN GROUP MEMBERS: THOMAS E. LYNCH SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: KONA GRILL INC CENTRAL INDEX KEY: 0001265572 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-EATING PLACES [5812] IRS NUMBER: 200216690 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-81402 FILM NUMBER: 09870254 BUSINESS ADDRESS: STREET 1: 7150 EAST CAMELBACK ROAD STREET 2: SUITE 220 CITY: SCOTTSDALE STATE: AZ ZIP: 85251 BUSINESS PHONE: 4809228100 MAIL ADDRESS: STREET 1: 7150 EAST CAMELBACK ROAD STREET 2: SUITE 220 CITY: SCOTTSDALE STATE: AZ ZIP: 85251 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: Mill Road Capital, L.P. CENTRAL INDEX KEY: 0001435260 IRS NUMBER: 205432103 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: TWO SOUND VIEW DRIVE STREET 2: SUITE 300 CITY: GREENWICH STATE: CT ZIP: 06830 BUSINESS PHONE: 203-987-3500 MAIL ADDRESS: STREET 1: TWO SOUND VIEW DRIVE STREET 2: SUITE 300 CITY: GREENWICH STATE: CT ZIP: 06830 SC 13D/A 1 dsc13da.htm SCHEDULE 13D AMENDMENT NO. 8 Schedule 13D Amendment No. 8

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

SCHEDULE 13D

Under the Securities Exchange Act of 1934

(Amendment No. 8)*

Kona Grill, Inc.

(Name of Issuer)

Common Stock, par value $0.01 per share

(Title of Class of Securities)

50047H201

(CUSIP Number)

Mill Road Capital, L.P.

Attn: Thomas E. Lynch

Two Sound View Drive

Suite 300

Greenwich, CT 06830

203-987-3501

With a copy to:

Peter M. Rosenblum, Esq.

Foley Hoag LLP

155 Seaport Blvd.

Boston, MA 02210

617-832-1151

(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)

June 2, 2009

(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 §§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 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).


CUSIP No. 50047H201		13D		Page 2 of 9 Pages


1.	Names of Reporting Persons. Thomas E. Lynch
2.	Check the Appropriate Box if a Member of a Group (See Instructions) (a) ¨ (b) ¨
3.	SEC Use Only
4.	Source of Funds (See Instructions) OO
5.	Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)	¨
6.	Citizenship or Place of Organization USA


Number of Shares Beneficially Owned by Each Reporting Person With		7. Sole Voting Power
		8. Shared Voting Power 640,062
		9. Sole Dispositive Power
		10. Shared Dispositive Power 640,062


11.	Aggregate Amount Beneficially Owned by Each Reporting Person 640,062
12.	Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)	¨
13.	Percent of Class Represented by Amount in Row (11) 9.8%
14.	Type of Reporting Person (See Instructions) IN; HC


CUSIP No. 50047H201		13D		Page 3 of 9 Pages


1.	Names of Reporting Persons. Charles M. B. Goldman
2.	Check the Appropriate Box if a Member of a Group (See Instructions) (a) ¨ (b) ¨
3.	SEC Use Only
4.	Source of Funds (See Instructions) OO
5.	Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)	¨
6.	Citizenship or Place of Organization USA


Number of Shares Beneficially Owned by Each Reporting Person With		7. Sole Voting Power
		8. Shared Voting Power 640,062
		9. Sole Dispositive Power
		10. Shared Dispositive Power 640,062


11.	Aggregate Amount Beneficially Owned by Each Reporting Person 640,062
12.	Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)	¨
13.	Percent of Class Represented by Amount in Row (11) 9.8%
14.	Type of Reporting Person (See Instructions) IN; HC


CUSIP No. 50047H201		13D		Page 4 of 9 Pages


1.	Names of Reporting Persons. Scott P. Scharfman
2.	Check the Appropriate Box if a Member of a Group (See Instructions) (a) ¨ (b) ¨
3.	SEC Use Only
4.	Source of Funds (See Instructions) OO
5.	Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)	¨
6.	Citizenship or Place of Organization USA


Number of Shares Beneficially Owned by Each Reporting Person With		7. Sole Voting Power
		8. Shared Voting Power 640,062
		9. Sole Dispositive Power
		10. Shared Dispositive Power 640,062


11.	Aggregate Amount Beneficially Owned by Each Reporting Person 640,062
12.	Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)	¨
13.	Percent of Class Represented by Amount in Row (11) 9.8%
14.	Type of Reporting Person (See Instructions) IN; HC


CUSIP No. 50047H201		13D		Page 5 of 9 Pages


1.	Names of Reporting Persons Mill Road Capital GP LLC
2.	Check the Appropriate Box if a Member of a Group (See Instructions) (a) ¨ (b) ¨
3.	SEC Use Only
4.	Source of Funds (See Instructions) OO
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 Shares Beneficially Owned by Each Reporting Person With		7. Sole Voting Power 640,062
		8. Shared Voting Power
		9. Sole Dispositive Power 640,062
		10. Shared Dispositive Power


11.	Aggregate Amount Beneficially Owned by Each Reporting Person 640,062
12.	Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)	¨
13.	Percent of Class Represented by Amount in Row (11) 9.8%
14.	Type of Reporting Person (See Instructions) OO; HC


CUSIP No. 50047H201		13D		Page 6 of 9 Pages


1.	Names of Reporting Persons. Mill Road Capital, L.P.
2.	Check the Appropriate Box if a Member of a Group (See Instructions) (a) ¨ (b) ¨
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 Shares Beneficially Owned by Each Reporting Person With		7. Sole Voting Power 640,062
		8. Shared Voting Power
		9. Sole Dispositive Power 640,062
		10. Shared Dispositive Power


11.	Aggregate Amount Beneficially Owned by Each Reporting Person 640,062
12.	Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)	¨
13.	Percent of Class Represented by Amount in Row (11) 9.8%
14.	Type of Reporting Person (See Instructions) PN


CUSIP No. 50047H201				Page 7 of 9 Pages

This Amendment No. 8 (this “Amendment”) to the joint statement on Schedule 13D with respect to the common stock, par value $0.01 per share, of Kona Grill, Inc., a Delaware corporation, filed by the undersigned on June 26, 2008 (the “Initial Filing”), as amended by Amendment No. 1 on Schedule 13D filed by the undersigned on November 14, 2008, with respect to the Initial Filing, as amended by Amendment No. 2 on Schedule 13D filed by the undersigned on December 30, 2008, with respect to the Initial Filing, as amended by Amendment No. 3 on Schedule 13D filed by the undersigned on January 2, 2009, with respect to the Initial Filing, as amended by Amendment No. 4 on Schedule 13D filed by the undersigned on January 30, 2009, with respect to the Initial Filing, as amended by Amendment No. 5 on Schedule 13D filed by the undersigned on March 12, 2009, with respect to the Initial Filing, as amended by Amendment No. 6 on Schedule 13D filed by the undersigned on April 15, 2009, with respect to the Initial Filing, and as amended by Amendment No. 7 on Schedule 13D filed by the undersigned on May 18, 2009, with respect to the Initial Filing (the “Schedule 13D”), amends the Schedule 13D as follows:

1.	Item 4 of the Schedule 13D shall hereby be amended by inserting the following paragraph between the fifth and sixth paragraphs:

“On June 2, 2009, the Fund transmitted a letter to the Issuer, attached hereto as Exhibit 16, in which it submitted a non-binding offer to provide $3.5 million in financing to the Issuer.”

2.	Item 5(a) of the Schedule 13D shall hereby be amended and restated in full as follows:

“(a) In the aggregate, the Reporting Persons beneficially own, as of June 2, 2009, 640,062 shares of the Common Stock, representing approximately 9.8% of such class of securities. The Fund, the GP, as the sole general partner of the Fund, and each Manager, as a management committee director of the GP, each beneficially owns, as of June 2, 2009, 640,062 shares of the Common Stock, representing approximately 9.8% of such class of securities. These percentages of beneficial ownership are based on a total of 6,520,313 shares of the Common Stock outstanding as of April 30, 2009, as reported in the most recent quarterly report of the Issuer on Form 10-Q for the fiscal quarter ended March 31, 2009.”

3.	Item 5(c) of the Schedule 13D shall hereby be amended and restated in full as follows:

“No Reporting Person effected any transaction in shares of the Common Stock from May 18, 2009 (the date of the most recent filing on Schedule 13D by the Reporting Persons with respect to the Common Stock), to June 2, 2009.”

4.	Item 7 of the Schedule 13D shall hereby be amended by adding Exhibit 16 as follows:

“Exhibit 16 Letter from Mill Road Capital, L.P. to the Board of Directors of Kona Grill dated June 2, 2009.”

5.	Except as expressly modified hereby, all provisions of the Schedule 13D shall continue in full force and effect.


CUSIP No. 50047H201				Page 8 of 9 Pages

Signature

After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.


DATE:		June 3, 2009

MILL ROAD CAPITAL, L.P.

By:		Mill Road Capital GP LLC, its General Partner

By:		/s/ Charles M. B. Goldman
		Charles M. B. Goldman
		Management Committee Director

MILL ROAD CAPITAL GP LLC

By:		/s/ Charles M. B. Goldman
		Charles M. B. Goldman
		Management Committee Director


CUSIP No. 50047H201				Page 9 of 9 Pages


THOMAS E. LYNCH

By:		/s/ Charles M. B. Goldman
		Charles M. B. Goldman, attorney-in-fact

CHARLES M. B. GOLDMAN

/s/ Charles M. B. Goldman
Charles M. B. Goldman

SCOTT P. SCHARFMAN

By:		/s/ Charles M. B. Goldman
		Charles M. B. Goldman, attorney-in-fact

EX-16 2 dex16.htm LETTER FROM MILL ROAD CAPITAL, L.P. TO THE BOARD OF DIRECTORS OF KONA GRILL Letter from Mill Road Capital, L.P. to the Board of Directors of Kona Grill

Exhibit 16

LOGO

June 2, 2009

Board of Directors

Attn: Mark Zesbaugh

Kona Grill, Inc.

7150 East Camelback Road

Suite 220

Scottsdale, AZ 85251

Re:

Proposal of Superior Financing to Rights Offering

Dear Mark:

This letter serves as a written submission of a financing proposal by Mill Road Capital L.P. (“Mill Road”) for the review of the Board of Directors of Kona Grill, Inc. (“Kona” or the “Company”). This proposal is intended as a replacement for the currently planned rights offering and would provide the same proceeds to the Company with no dilution to any shareholders. The terms of the proposal are as follows:


Securities:		$3.5 million of unsecured subordinated notes provided by Mill Road

Use of Proceeds:		Repayment of the March 5, 2009 unsecured subordinated notes and cash for operating purposes

Interest Rate:		12% cash interest paid monthly

Term:		1 year

Warrant Coverage:		None

Mill Road is able to complete definitive documentation and fund this investment expeditiously. Needless to say, the proposal set forth herein is not binding; binding obligations will be created only by definitive documentation. I look forward to discussing this with you and the Special Committee and working together on a transaction that meets the best interest of Kona, its shareholders and its employees.


Sincerely,

Mill Road Capital L.P.

By:		Mill Road Capital GP LLC Its General Partner

By:		/s/ Thomas E. Lynch
		Thomas Lynch
		Senior Managing Director

Two Sound View Drive, Suite 300 • Greenwich, CT 06830 • (203) 987-3500

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