UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
AMENDMENT NO. 8 TO
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
DERMA SCIENCES, INC.
--------------------
(Name of Issuer)
COMMON STOCK, $.01 PAR VALUE PER SHARE
--------------------------------------
(Title of Class of Securities)
249827106
--------------
(CUSIP Number)
Bruce F. Wesson
Senior Managing Member
Claudius, L.L.C.
610 Fifth Avenue, 5th Floor
New York, NY 10020
(212) 218-4990
--------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized
to Receive Notices and Communications)
JUNE 13, 2003
-------------------------------------------------------
(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 Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following
box: |_|
Note: Schedules filed in paper format shall include a signed original and five
copies with the schedule, including all exhibits. See Rule 13d-7(b) for other
parties to whom copies are to be sent.
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, as amended (the "Act") or otherwise subject to the liabilities of that
section of the Act but shall be subject to all provisions of the Act (however,
see the Notes).
Page 1 of 9 Pages
1
Page 2 of 9 of the initial Schedule 13D pertaining to the Common
Shares of Derma Sciences, Inc., a Pennsylvania corporation, filed with the
Securities and Exchange Commission ("SEC") on February 6, 1998 for an event on
January 23, 1998 and subsequently amended on September 18, 1998 by Amendment No.
1 and on August 24, 1999 by Amendment No.2, and on January 10, 2000 by Amendment
No. 3 and on August 7, 2000 by Amendment No. 4, and on March 19, 2001 by
Amendment No. 5, and on March 16, 2002 by Amendment No. 6, and on May 16, 2003
by Amendment No. 7, is hereby further amended to read in its entirety as
follows:
SCHEDULE 13D
--------------------------------------------------------------------------------
CUSIP NO. 249827106 PAGE 2 OF 9 PAGES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Galen Partners III, L.P.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)| |
(b)|X|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(D) OR 2(E) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
4,890,201 (see Item 5(a))
SHARES ----------------------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
0
OWNED BY ----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
EACH
4,890,201
REPORTING ----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
PERSON WITH
0
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,890,201
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
46.56%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
--------------------------------------------------------------------------------
2
Page 3 of 9 of the Schedule 13D, as amended, is hereby further amended
to read in its entirety as follows:
SCHEDULE 13D
--------------------------------------------------------------------------------
CUSIP NO. 249827106 PAGE 3 OF 9 PAGES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Galen Partners International III, L.P.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)| |
(b)|X|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(D) OR 2(E) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
442,995 (see Item 5(a))
SHARES ----------------------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
0
OWNED BY ----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
EACH
442,995
REPORTING ----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
PERSON WITH
0
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
442,995
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.21%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
--------------------------------------------------------------------------------
3
Page 4 of 9 of the Schedule 13D, as amended, is hereby further amended
to read in its entirety as follows:
SCHEDULE 13D
--------------------------------------------------------------------------------
CUSIP NO. 249827106 PAGE 4 OF 9 PAGES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Galen Employee Fund III, L.P.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)| |
(b)|X|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(D) OR 2(E) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
20,044 (see Item 5(a))
SHARES ----------------------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
0
OWNED BY ----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
EACH
20,044
REPORTING ----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
PERSON WITH
0
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
20,044
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.19%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
--------------------------------------------------------------------------------
4
Page 5 of 9 of the Schedule 13D, as amended, is hereby further amended
to read in its entirety as follows:
SCHEDULE 13D
--------------------------------------------------------------------------------
CUSIP NO. 249827106 PAGE 5 OF 9 PAGES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
William R. Grant
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)| |
(b)|X|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
PF
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(D) OR 2(E) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
574,500 (see Item 5(a))
SHARES ----------------------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
0
OWNED BY ----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
EACH
574,500
REPORTING ----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
PERSON WITH
0
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
574,500
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.55%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
--------------------------------------------------------------------------------
5
The first paragraph of Item 1 of the Schedule 13D is hereby amended to
read in its entirety as follows:
"This statement covers a total of 5,927,740 fully diluted
shares of Common Stock, $.01 par value per share (the
"Common Stock"), of Derma Sciences, Inc., a Pennsylvania
corporation (the "Issuer"). The Reporting Persons (as
defined in Item 2 hereof) as of the date hereof hold an
aggregate of (i) 1,836,500 shares of Common Stock, (ii)
543,267 shares of Series B Convertible Preferred Stock, $.01
par value per share, of the Issuer (the "Series B Preferred
Shares"), which as of the date hereof are convertible into
an aggregate of 543,267 shares of Common Stock, (iii)
617,184 shares of Series C Convertible Preferred Stock, $.01
par value per share, of the Issuer (the "Series C Preferred
Shares"), which as of the date hereof are convertible into
an aggregate of 617,184 shares of Common Stock, (iv)
1,071,345 shares of Series D Convertible Preferred Stock,
$.01 par value per share, of the Issuer (the "Series D
Preferred Shares"), which as of the date hereof are
convertible into an aggregate of 1,071,345 shares of Common
Stock, and (v) 1,859,444 warrants (the "Warrants"), which as
of the date hereof may be exercised for an aggregate of
1,859,444 shares of Common Stock. The Common Stock, Series B
Preferred Shares, Series C Preferred Shares, Series D
Preferred Shares and Warrants are referred to herein,
collectively, as the "Securities".
The third paragraph of Item 3 of the Initial Schedule 13D is hereby
amended to read in its entirety as follows:
"The Reporting Persons acquired, in a series of private
transactions with the Issuer culminating on June 13, 2003,
an aggregate of 1,779,500 shares of Common Stock at a
purchase price of $0.50 per share for an aggregate amount of
$889,750 in cash. Each Reporting Person paid its pro rata
share of the acquisition price of the shares of Common Stock
based upon the number of shares it received."
6
Item 5, subpart (a) of the Initial Schedule 13D is hereby amended to
read in its entirety as follows:
(a) Each Reporting Person owns or has the right to acquire the number
of securities shown opposite its name:
============================================================================================================
(1) (2) (3) (4) (5) (6)
------------------------------------------------------------------------------------------------------------
Number of Shares Number of
of Common Stock Shares of
into which Series Common Stock
A, Series B, which may be Percentage of
Series C and acquired Outstanding
Series D Preferred pursuant to Total of Shares of Common
Reporting Number of Shares Stock is exercise of Columns (2), Stock (see Note
Person of Common Stock Convertible Warrants (3) and (4) below)
============================================================================================================
Galen 1,152,611 2,038,869 1,698,721 4,890,201 46.56%
------------------------------------------------------------------------------------------------------------
Galen Intl 104,654 184,577 153,764 442,995 4.21%
------------------------------------------------------------------------------------------------------------
GEF 4,735 8,350 6,959 20,044 0.19%
------------------------------------------------------------------------------------------------------------
Grant 574,500 0 0 574,500 5.55%
------------------------------------------------------------------------------------------------------------
Total 1,836,500 2,231,796 1,859,444 5,927,740 56.44%
============================================================================================================
Note: The percentages shown in each row of column (6) were calculated,
for each respective row, by (i) adding the total in the bottom row of column (5)
(less 57,000 shares of Common Stock issued and outstanding) to 4,631,276 (the
number of shares of Common Stock outstanding as of March 31, 2003, as set forth
in the Issuer's Quarterly Report on Form 10-QSB for the quarter then ended (the
"Total Adjusted Outstanding Shares"), then (ii) dividing the amount in column
(5) by the Total Adjusted Outstanding Shares, and then (iii) expressing such
quotient in terms of a percentage.
7
SIGNATURE
---------
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in the statement is true, complete and
correct.
Date: June 20, 2003 GALEN PARTNERS III, L.P.
By: Claudius, L.L.C.
By: /s/ Bruce F. Wesson
-----------------------------------
Managing Member
GALEN PARTNERS
INTERNATIONAL III, L.P.
By: Claudius, L.L.C
By: /s/ Bruce F. Wesson
-----------------------------------
Managing Member
GALEN EMPLOYEE FUND III, L.P.
By: Wesson Enterprises, Inc
By: /s/ Bruce F. Wesson
-----------------------------------
President
[Signatures continued on next page.]
8
CLAUDIUS, L.L.C.
By: /s/ Bruce F. Wesson
-----------------------------------
Managing Member
WESSON ENTERPRISES, INC.
By: /s/ Bruce F. Wesson
-----------------------------------
President
WILLIAM R. GRANT
By: /s/ Bruce F. Wesson
-----------------------------------
Bruce F. Wesson, Attorney-In-Fact
BRUCE F. WESSON
/s/ Bruce F. Wesson
--------------------------------------
Bruce F. Wesson
L. JOHN WILKERSON
By: /s/ Bruce F. Wesson
-----------------------------------
Bruce F. Wesson, Attorney-In-Fact
DAVID JAHNS
By: /s/ Bruce F. Wesson
-----------------------------------
Bruce F. Wesson, Attorney-In-Fact
SRINI CONJEEVARAM
By: /s/ Bruce F. Wesson
-----------------------------------
Bruce F. Wesson, Attorney-In-Fact
ZUBEEN SHROFF
By: /s/ Bruce F. Wesson
-----------------------------------
Bruce F. Wesson, Attorney-In-Fact
9