SC 13D/A 1 eh1700203_13da1-jerrold.htm AMENDMENT NO. 1


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

SCHEDULE 13D
[Rule 13d-101]

INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO §240.13d-1(a)
AND AMENDMENTS THERETO FILED PURSUANT TO §240.13d-2(a)

(Amendment No. 1)
 
ADMA Biologics, Inc.
(Name of Issuer)
 
Common Stock, $0.0001 par value per share
(Title of Class of Securities)

000899 104
(CUSIP Number)

Jerrold B. Grossman
Maggro, LLC
465 State Route 17 South
Ramsey, New Jersey 07746
(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)
 
January 21, 2017
(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.
 

 
 

 
CUSIP No. 000899 104
SCHEDULE 13D
Page 2 of 9

 
1
NAME OF REPORTING PERSON OR
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
 
Maggro, LLC
 
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
 
 
(a)  o
(b)  ☒
3
SEC USE ONLY
 
 
 
4
SOURCE OF FUNDS
 
OO
 
5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e)
 
 
6
CITIZENSHIP OR PLACE OF ORGANIZATION
 
New Jersey
 
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY EACH
REPORTING PERSON
WITH
7
SOLE VOTING POWER
 
528,016
8
SHARED VOTING POWER
 
0
9
SOLE DISPOSITIVE POWER
 
528,016
10
SHARED DISPOSITIVE POWER
 
0
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 
528,016
 
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
 
 
o
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
 
4.10%(1)
 
14
TYPE OF REPORTING PERSON
 
OO
 
 
_____________
(1) Based on 12,886,741 shares of the Company’s common stock outstanding as of November 10, 2016, as disclosed in the Company’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 10, 2016.

 

 
CUSIP No. 000899 104
SCHEDULE 13D
Page 3 of 9

 
1
NAME OF REPORTING PERSON OR
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
 
Grossman, Jerrold B.
 
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
 
 
(a)  o
(b)  ☒
3
SEC USE ONLY
 
 
 
4
SOURCE OF FUNDS
 
OO
 
5
CHECK BOX 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
SHARES
BENEFICIALLY
OWNED BY EACH
REPORTING PERSON
WITH
7
SOLE VOTING POWER
 
215,188
8
SHARED VOTING POWER
 
0
9
SOLE DISPOSITIVE POWER
 
215,188
10
SHARED DISPOSITIVE POWER
 
0
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 
215,188
 
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
 
 
o
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
 
1.66%(1)
 
14
TYPE OF REPORTING PERSON
 
IN
 
 
_____________
(1) Based on 12,886,741 shares of the Company’s common stock outstanding as of November 10, 2016, as disclosed in the Company’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 10, 2016.
 
 

 
CUSIP No. 000899 104
SCHEDULE 13D
Page 4 of 9
 
 
Item 1.
Security and Issuer

This Amendment No. 1 to Schedule 13D (“Amendment No. 1”) is being filed by the undersigned to amend the Schedule 13D filed by the Reporting Persons on February 23, 2012 (the “Schedule 13D”), with respect to the common stock, par value $0.0001 per share (the “Common Stock”), of ADMA Biologics, Inc. (the “Company,” “ADMA” or the “Issuer”). The Company’s principal executive offices are at 465 State Route 17 South, Ramsey, New Jersey 07746.

Item 2.
Identity and Background

(a)
This Schedule 13D is being filed on behalf of the following persons (each, a “Reporting Person” and collectively, the “Reporting Persons”):
(i) Maggro, LLC, a New Jersey limited liability company (“Maggro”); and
(ii) Dr. Jerrold B. Grossman.
 
(b)
The business address (address of principal business and address of principal office) for the Reporting Persons is 465 State Route 17 South, Ramsey, New Jersey 07746. Mr. Matthew Grossman is the managing member of Maggro.
 
(c)
Maggro is a limited liability company formed for the purpose of holding securities of the Company and other entities as well as making other investments, including in real estate.
 
Dr. Grossman is the Vice-Chairman of the Company and Chief Executive Officer of Technomed, Inc. (formerly National Hospital Specialties), a wholesaler of specialty biological and pharmaceutical products.
 
The address of Technomed, Inc. is 465 State Route 17 South, Ramsey, New Jersey 07746.
 
(d)
None of the Reporting Persons has, during the last five years, been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors).
 
(e)
None of the Reporting Persons has, during the last five years, been 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.
 
(f)
Maggro is a New Jersey limited liability company. Dr. Grossman is a United States citizen.

Item 3.
Source or Amount of Funds or Other Consideration.

Item 3 of the Schedule 13D is hereby amended to add the following additional disclosure:

On April 28, 2016, the Company completed a public offering of 1,892,308 shares of the Company's Common Stock (the “2016 Offering”). In connection with the 2016 Offering, Dr. Grossman purchased 45,770 shares through an entity he controls.

On April 28, 2016, Mr. Matthew Grossman became the managing member of Maggro.

 

 
CUSIP No. 000899 104
SCHEDULE 13D
Page 5 of 9
 
 
Item 4.
Purpose of the Transaction.
 
The Reporting Persons acquired the Company’s shares in connection with the Merger (as disclosed in the original filing of this Schedule 13D), pursuant to option exercises from time to time, and in connection with the 2016 Offering described above. Except in connection with the possible future exercise of options to purchase Common Stock beneficially owned by Dr. Grossman, and except as contemplated by the agreements disclosed under Item 6 below, neither of the Reporting Persons has present plans which relate to or would result in:
 
 
(a)
The acquisition by any person of additional securities of the Company, or the disposition of securities of the Company;
 
 
(b)
An extraordinary corporate transaction, such as a merger, reorganization or liquidation, involving the Company or any of its subsidiaries;
 
 
(c)
A sale or transfer of a material amount of assets of the Company or any of its subsidiaries;
 
 
(d)
Any change in the present board of directors or management of the Company, 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 Company;
 
 
(f)
Any other material change in the Company’s business or corporate structure;
 
 
(g)
Changes in the Company’s charter, bylaws or instruments corresponding thereto or other actions which may impede the acquisition of control of the Company by any person;
 
 
(h)
Causing a class of securities of the Company 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 Company becoming eligible for termination of registration pursuant to Section 12(g)(4) of the Securities Exchange Act of 1934; or
 
 
(j)
Any action similar to any of those enumerated above.

The Reporting Persons may, at any time, review or reconsider their position with respect to the Company and formulate
plans or proposals with respect to any of the above matters.

Item 5.
Interest in Securities of the Issuer.

(a) Maggro may be deemed to beneficially own 528,016 shares of Common Stock, amounting to approximately 4.10% of the outstanding shares of Common Stock as of the date hereof (calculated in the manner prescribed by Rule 13d-3 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)).

Dr. Grossman may be deemed to beneficially own 106,327 outstanding shares of Common Stock and, in addition, 108,861 shares of Common Stock issuable upon exercise of options to purchase Common Stock. The number of shares beneficially owned by Dr. Grossman amounts to approximately 1.66% of the outstanding shares of Common Stock as of the date hereof (calculated in the manner prescribed by Rule 13d-3 under the Exchange Act).
 
 

 
CUSIP No. 000899 104
SCHEDULE 13D
Page 6 of 9
 
 
(b) Maggro and/or Mr. Matthew Grossman may be deemed to have the sole power to vote or to direct the vote and/or the sole power to dispose or to direct the disposition of the 528,016 shares of Common Stock beneficially owned by it.

Dr. Grossman may be deemed to have the sole power to vote or to direct the vote and/or the sole power to dispose or to direct the disposition of the 215,188 shares of Common Stock beneficially owned by him.

(c) Except as described in this Schedule 13D, the Reporting Person did not engage in any transactions in shares of Common Stock during the past 60 days.

(d) Not Applicable.

(e) On April 28, 2016, the Reporting Persons ceased to be the beneficial owners of more than 5% of the Company’s Common Stock.

Item 6.
Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer.

Item 6 of the Schedule 13D is hereby amended as follows:

Except as set forth below, there are no contracts, arrangements, understandings or relationships (legal or otherwise), between any of the persons named in Item 2 and any person with respect to any securities of the Company, including, without limitation, the transfer or voting of any of the securities, 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 any pledge or contingency, the occurrence of which would give another person voting or investment power over the securities of the Company.

Master Purchase and Sale Agreement
 
As disclosed in the Issuer’s Form 8-K filed on January 23, 2017, on January 21, 2017, the Issuer and its wholly-owned subsidiary, ADMA BioManufacturing, LLC, a Delaware limited liability company (“Buyer”), entered into a Master Purchase and Sale Agreement (the “Purchase Agreement”) with Biotest Pharmaceuticals Corporation, a Delaware corporation (“Seller”), and for certain limited purposes set forth in the Purchase Agreement, Biotest AG, a company organized under the laws of Germany and the ultimate parent company of Seller (“Biotest”), and Biotest US Corporation, a Delaware corporation and subsidiary of Biotest (together with Biotest, the “Biotest Guarantors”), pursuant to which Buyer has agreed to acquire (the “Acquisition”) certain assets and assume certain liabilities constituting the therapy business of Seller (the “Business”).  Seller will retain its plasma business.  The Business to be acquired by Buyer includes (a) a U.S. based Food and Drug Administration (FDA) licensed immune globulin manufacturing and plasma products production  facility of two buildings of approximately 126,000 square feet located on approximately 15 acres of land in Boca Raton, Florida, and the associated real property, (b) all exclusive rights to FDA licensed biologics products Nabi-HB®, BIVIGAM® and the investigational product CIVACIR®, (c) in-process inventory with an agreed-upon value of at least $5 million, (d) certain other properties and assets used exclusively in the Business, and (e) certain additional assets which relate to both the Business and Seller’s plasma business the arrangement with respect to which will be documented in a transition services agreement to be mutually agreed by the parties between the signing of the Purchase Agreement and the closing of the proposed Acquisition.

Subject to the terms and conditions of the Purchase Agreement, upon the closing of the Acquisition, as part of the consideration, the Issuer has agreed to deliver to Seller an aggregate equity interest in the Issuer equal to fifty (50%), less one (1) share, of the issued and outstanding ADMA capital stock (calculated as of immediately following the closing and on a post-closing issuance basis) (the “Biotest Equity Interest”), consisting of (x) ADMA Common Stock representing twenty-five percent (25%) of the issued and outstanding Common Stock of ADMA, equal to 4,295,580 shares of Common Stock and (y) non-voting common stock equal to 8,591,160 shares of ADMA Common Stock representing the balance of the Biotest Equity Interest which is convertible into Common Stock of ADMA upon the occurrence of certain specified events.


 
CUSIP No. 000899 104
SCHEDULE 13D
Page 7 of 9
 
 
Voting Agreement

On January 21, 2017, in connection with the execution and delivery of the Purchase Agreement, each Reporting Person entered into a Voting Agreement (each, a “Voting Agreement”) with Seller and the Company.

The Voting Agreements generally require that the Reporting Persons: (i) vote all of their shares of Common Stock in favor of the Purchase Agreement and all transactions contemplated by the Purchase Agreement; (ii) vote against any alternative transaction; (iii) not transfer their Common Stock during the term of the Voting Agreement or enter into any other voting agreement, voting trust or similar agreement with respect to any of their shares of Common Stock and (iv) not take any action that would constitute a violation of the non-solicitation provisions of the Purchase Agreement if taken by the Issuer, its representatives or affiliates, with the limitations and exceptions of such provisions of the Purchase Agreement that are applicable to the Issuer, its representatives or affiliates being similarly applicable to the Reporting Persons.

Each Voting Agreement includes a cap of 25% on the aggregate voting power represented all voting agreements signed by stockholders of the Issuer in connection with the Acquisition, taken together, if, in response to a “Superior Transaction” (as defined in the Purchase Agreement) received by the Issuer’s board of directors, the Issuer’s board of directors makes an “Adverse Recommendation Change” (as defined in the Purchase Agreement) in accordance with Section 6.8 of the Purchase Agreement and it does not terminate the Purchase Agreement.  In such circumstances, the Reporting Persons voting power would be reduced pro rata along with any other stockholders who have signed voting agreements with respect to the Acquisition.

The Voting Agreements terminate upon the first to occur of (i) the closing date, (ii) the termination of the Voting Agreement by mutual consent of the parties thereto, (iii) the termination of the Purchase Agreement, (iv) September 30, 2017 and (v) any amendment, modification or waiver to the Purchase Agreement that changes the form, timing or amount of the purchase price or other consideration contemplated by the Purchase Agreement.

The foregoing description of the Voting Agreements is not complete and is qualified entirely by reference to the full text of such agreements, filed herewith.
 

 
CUSIP No. 000899 104
SCHEDULE 13D
Page 8 of 9

 
Item 7.
Material to be filed as Exhibits.
 
 
Exhibit 7:
 
 
Exhibit 8:
Voting Agreement, dated as of January 21, 2017, by and among Biotest Pharmaceuticals Corporation, a Delaware corporation, ADMA Biologics, Inc., a Delaware corporation (the, and each of the Persons listed on Schedule 1 thereto. (Maggro)
 
 
 
 
 

 
CUSIP No. 000899 104
SCHEDULE 13D
Page 9 of 9
 
 
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: January 24, 2017
 
 
Maggro, LLC  
       
 
By:
/s/ Matthew Grossman
 
    Matthew Grossman  
   
Managing Member
 
       
 
/s/ Jerrold B. Grossman
 
 
Jerrold B. Grossman
 
 
 
 
Attention. Intentional misstatements or omissions of fact constitute federal criminal violations (see 18 U.S.C. 1001).