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UNITED STATES |
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SECURITIES AND EXCHANGE COMMISSION |
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Washington, D.C. 20549 |
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SCHEDULE 13D/A |
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(Amendment No. 1)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
TO §240.13d-1(a) AND AMENDMENTS THERETO FILED
PURSUANT TO §240.13d-2(a)
Astea International Inc.
(Name of Issuer)
Common Stock, par value $0.01 per share
(Title of Class of Securities)
04622E208
(CUSIP Number)
Alex S. Glovsky, Esq., Nutter, McClennen & Fish LLP
155 Seaport Blvd, Boston, MA 02210
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
May 6, 2013
(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 §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. x
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 to be 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 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. 04622E208 |
SCHEDULE 13D/A |
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(1) |
Names of Reporting Persons | |||||
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(2) |
Check the Appropriate Box if a Member of a Group (See Instructions) | |||||
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(a) |
o | ||||
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(b) |
o | ||||
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(3) |
SEC Use Only | |||||
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(4) |
Source of Funds (See Instructions) | |||||
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(5) |
Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) o | |||||
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(6) |
Citizenship or Place of Organization | |||||
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Number of |
(7) |
Sole Voting Power: | |||||
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(8) |
Shared Voting Power: | ||||||
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(9) |
Sole Dispositive Power: | ||||||
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(10) |
Shared Dispositive Power: | ||||||
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(11) |
Aggregate Amount Beneficially Owned by Each Reporting Person: | |||||
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(12) |
Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions) o | |||||
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(13) |
Percent of Class Represented by Amount in Row 9: | |||||
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(14) |
Type of Reporting Person (See Instructions): | |||||
CUSIP No. 04622E208 |
SCHEDULE 13D/A |
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(1) |
Names of Reporting Persons | |||||
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(2) |
Check the Appropriate Box if a Member of a Group (See Instructions) | |||||
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(a) |
o | ||||
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(b) |
o | ||||
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(3) |
SEC Use Only | |||||
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(4) |
Source of Funds (See Instructions) | |||||
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(5) |
Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) o | |||||
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(6) |
Citizenship or Place of Organization | |||||
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Number of |
(7) |
Sole Voting Power: | |||||
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(8) |
Shared Voting Power: | ||||||
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(9) |
Sole Dispositive Power: | ||||||
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(10) |
Shared Dispositive Power: | ||||||
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(11) |
Aggregate Amount Beneficially Owned by Each Reporting Person: | |||||
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(12) |
Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions) o | |||||
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(13) |
Percent of Class Represented by Amount in Row 9: | |||||
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(14) |
Type of Reporting Person (See Instructions): | |||||
CUSIP No. 04622E208 |
SCHEDULE 13D/A |
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This Amendment No. 1 amends and supplements, as set forth below, the information contained in Items 3, 4, 5 and 7 of the Schedule 13D that was originally filed with the Securities and Exchange Commission (the SEC) on November 27, 2012 (the Schedule 13D). Except as amended by this Amendment No. 1, all information contained in the Schedule 13D is, after reasonable inquiry and to the best of the Reporting Persons knowledge and belief, true, complete and correct as of the date of this Amendment No. 1. Capitalized terms used herein and not otherwise defined have the meanings set forth in the Schedule 13D.
Item 3. Source and Amount of Funds or Other Consideration.
Item 3 is hereby amended and restated as follows:
The shares of Common Stock beneficially owned by the Reporting Persons were acquired by purchase on the open market for an aggregate purchase price of $1,060,572 using the personal funds of Mr. Ashton and the investment capital of Kinetic Catalyst Partners LLC.
Item 4. Purpose of Transaction.
Item 4 is hereby amended and restated as follows:
Kinetic Catalyst Partners LLC acquired the shares of Common Stock that it beneficially owns in the ordinary course of its business of purchasing, selling, trading and investing in securities.
The Reporting Persons primary interest is to maximize the value of their investment. To this end, the Reporting Persons continually review the Companys business affairs and financial position and future prospects, as well as conditions in the securities markets and general economic and industrial conditions. The Reporting Persons may, from time to time, depending on market conditions and other considerations, acquire additional securities or dispose of some or all of the securities of the Issuer held by them, as permitted by the relevant securities laws and any agreement or agreements that may be entered into with the Issuer.
In addition, in a letter to the shareholders of the Company dated May 6, 2013, the Reporting Persons stated their intent to withhold their vote for director Adrian Peters at the Companys 2013 annual meeting of shareholders and encouraged other shareholders to do the same. A copy of the letter to the shareholders is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Except as set forth above, the Reporting Persons do not have any plans or proposals which relate to or would result in: (a) the acquisition by any person of additional securities of the issuer, or the disposition of securities of the issuer; (b) an extraordinary corporation transaction, such as a merger, reorganization or liquidation, involving the issuer or any of its subsidiaries; (c) a sale or transfer of a material amount of assets of the issuer or of any of its subsidiaries; (d) any change in the present board of directors or management of the issuer, 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 issuer; (f) any other material change in the issuers business or corporate structure; (g) changes in the issuers charter, bylaws or instruments corresponding thereto or other actions which may impede the acquisition of control of the issuer by any person; (h) causing a class of securities of the issuer 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) causing a class of equity securities of the issuer becoming eligible for termination of registration pursuant to Section 12(g)(4) of the Act; or (j) any action similar to any of those enumerated above.
Item 5. Interest in Securities of the Issuer.
Item 5 is hereby amended and restated as follows:
CUSIP No. 04622E208 |
SCHEDULE 13D/A |
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(a) As of the date hereof, the Reporting Persons are the beneficial owners of an aggregate of 282,127 shares of Common Stock, which represents approximately 7.9%(1) of the issued and outstanding shares of Common Stock.
(b) Each of the Reporting Persons has the shared power to vote or direct the vote, and the shared power to dispose of or direct the disposition of 282,127 shares of Common Stock, and the sole power to vote or direct the vote or to dispose or direct the disposition of no shares.(2)
(c) The Reporting Persons have purchased and sold Common Stock on the open market in the last 60 days as follows:
Date |
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Purchaser |
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Type of |
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Number of |
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Price Per |
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March 18, 2013 |
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Kinetic Catalyst Partners LLC |
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Purchase |
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5,000 |
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$ |
2.95 |
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March 19, 2013 |
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Kinetic Catalyst Partners LLC |
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Purchase |
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700 |
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$ |
2.94 |
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March 26, 2013 |
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Robert B. Ashton IRA |
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Purchase |
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2,500 |
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$ |
3.00 |
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March 27, 2013 |
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Kinetic Catalyst Partners LLC |
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Purchase |
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1,000 |
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$ |
3.00 |
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March 28, 2013 |
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Robert B. Ashton IRA |
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Sale |
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5,700 |
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$ |
3.91 |
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April 10, 2013 |
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Kinetic Catalyst Partners LLC |
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Purchase |
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500 |
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$ |
3.44 |
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April 10, 2013 |
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Robert B. Ashton IRA |
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Purchase |
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3,200 |
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$ |
3.44 |
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April 15, 2013 |
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Robert B. Ashton IRA |
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Purchase |
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585 |
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$ |
3.25 |
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April 23, 2013 |
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Robert B. Ashton IRA |
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Purchase |
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1,000 |
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$ |
3.20 |
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April 24, 2013 |
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Kinetic Catalyst Partners LLC |
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Purchase |
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300 |
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$ |
3.21 |
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April 29, 2013 |
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Kinetic Catalyst Partners LLC |
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Purchase |
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1,130 |
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$ |
3.27 |
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(d) No other person is known to have the right to receive or the power to direct the receipt of dividends from, or the proceeds from the sale of, the Common Stock of the Issuer held by the Reporting Persons.
Item 7. Material to be Filed as Exhibits.
Item 7 is hereby amended and restated as follows:
Exhibit No. |
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Description |
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99.1 |
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Letter to Shareholders dated May 6, 2013 |
(1) Based on 3,587,299 shares of Common Stock outstanding as April 15, 2013.
(2) Robert B. Ashton, in his capacity as the Portfolio Manager of Kinetic Catalyst Partners LLC, has the legal power to direct the voting and disposition of the Common Stock beneficially owned by Kinetic Catalyst Partners LLC.
CUSIP No. 04622E208 |
SCHEDULE 13D/A |
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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
Dated: May 6, 2013 |
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KINETIC CATALYST PARTNERS LLC | |
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By: |
/s/ Robert B. Ashton |
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Name: |
Robert B. Ashton |
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Title: |
Portfolio Manager |
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/s/ Robert B. Ashton | |
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Robert B. Ashton |
Exhibit 99.1
May 6, 2013
Dear Astea International Shareholder:
Vote WITHHOLD on Astea Director Adrian Peters
On behalf of Kinetic Catalyst Partners, I urge you to vote WITHHOLD on director nominee Adrian Peters at Asteas June 13, 2013 meeting. Kinetic Catalyst Partners is one of Asteas largest independent shareholders, with 283,027 shares representing 7.9% of the outstanding shares.
Adrian Peters has Failed to Provide Effective Independent Oversight
In a public company run by its largest shareholder, independent directors have a special duty to ensure that all public shareholders are treated equally and to avoid conflicts of interest. We believe Adrian Peters has failed on both counts.
Unequal Treatment of Shareholders
When Adrian Peters joined the board in June of 2000, the company had over $40 million in cash and cash equivalents. During the period from 2000 through 2012, over $18 million in cash has gone from the company to the companys CEO and largest inside shareholder by virtue of interest payments, dividends, salary, consulting fees, vacation pay, and life insurance payments.
When the company needed cash in September 2008, rather than turn to third party financing sources or its existing shareholder base, the Board voted to secure such financing solely from the companys CEO and largest inside shareholder, issuing to such insider preferred stock in exchange for a $3 million investment. In short, the Board voted to permit the companys CEO the opportunity to reinvest a portion of the money already paid to him by the company in a preferential security that resulted in 20% dilution to the other shareholders and provides for a 10% interest payment that the company can ill afford to pay. Adding insult to injury was the fact the Board apparently did not see fit to see if the outside shareholders of the company would consider investment on these terms. This fact is particularly troubling given that the most recent 13D filer at the time publicly offered to do a straight equity deal.
We believe that the shares issued to the CEO in this financing transaction represent an overpayment to the CEO, the end result of which is an improper transfer of economic value and voting power from the public shareholders to the inside shareholder. It is the responsibility of the independent Board members, such as Adrian Peters, to ensure that such abuses do not occur.
Potential Conflict of Interest
The proxy statements from 2000 to present give Adrian Peters biographical summary without mention of any potential conflict or past relationship with Astea. Yet Adrian Peters Linkedln biographical information says he has served as President of Astea. Further, his company website for Boston Partners has a testimonial page from consulting clients that includes a quote from Asteas Chairman and CEO.
Future Potential Conflicts
In future years, the independent directors may face additional needs to raise capital as well as corporate succession issues given the age of the CEO. We have grave concerns about the ability of the independent directors to face these potential issues fairly.
Demand Reform by Voting Withhold for Director Adrian Peters
Asteas independent shareholders urgently require directors that are genuinely independent and accountable. By voting Withhold on Adrian Peters, you can help send that message to the Astea board. Contact independence@kinetic-catalyst.com for additional information.
Sincerely |
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/s/ Bob Ashton |
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Bob Ashton |
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Managing Member |
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Kinetic Catalyst Partners LLC |
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This letter is not a solicitation of authority to vote your proxy.
Please DO NOT send us your proxy card.
We encourage you to return to the company the proxy card it sent to you
and vote Withhold on Adrian Peters.
Kinetic Catalyst Partners LLC, 6 Occom Ridge Hanover NH 03755