SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO
RULE 13d-1(a) AND AMENDMENTS THERETO FILED
PURSUANT TO RULE 13d-2(a)
(Amendment No. 4)*
Spark Networks, Inc.
(Name of Issuer)
Common Stock, par value $0.001 per share
(Title of Class of Securities)
84651P100
(CUSIP Number)
Osmium Partners, LLC
300 Drakes Landing Road, Suite 172
Greenbrae, CA 94904
Attention: John H. Lewis
Telephone: (415) 785-4044
(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)
April 17, 2014
(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 Rule 13d-1(e), 13d-1(f) or 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 Rule 13d-7(b) for other parties to whom copies are to be sent.
* | The remainder of this cover page shall be filled out for a reporting persons 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).
Page 1 of 10 pages
CUSIP No.: 84651P100 |
1. | Name of reporting person S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
John H. Lewis | |||||
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 Item 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
325,352 | ||||
8 | Shared voting power
3,050,210 | |||||
9 | Sole dispositive power
325,352 | |||||
10 | Shared dispositive power
3,050,210 | |||||
11 |
Aggregate amount beneficially owned by each reporting person
3,375,562 | |||||
12 | Check box if the aggregate amount in Row (11) excludes certain shares ¨
| |||||
13 | Percent of class represented by amount in Row (11)
14.1% | |||||
14 | Type of reporting person
IN |
Page 2 of 10 pages
CUSIP No.: 84651P100 |
1 | Name of reporting person S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Osmium Partners, LLC | |||||
2 | Check the appropriate box if a member of a group (a) ¨ (b) x
| |||||
3 | SEC use only
| |||||
4 | Source of funds
AF | |||||
5 | Check box if disclosure of legal proceedings is required pursuant to Item 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
0 | ||||
8 | Shared voting power
3,050,210 | |||||
9 | Sole dispositive power
0 | |||||
10 | Shared dispositive power
3,050,210 | |||||
11 |
Aggregate amount beneficially owned by each reporting person
3,050,210 | |||||
12 | Check box if the aggregate amount in Row (11) excludes certain shares ¨
| |||||
13 | Percent of class represented by amount in Row (11)
12.8% | |||||
14 | Type of reporting person
IA, OO |
Page 3 of 10 pages
CUSIP No.: 84651P100 |
1 | Name of reporting person S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Osmium Capital, LP | |||||
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 Item 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
0 | ||||
8 | Shared voting power
1,255,468 | |||||
9 | Sole dispositive power
0 | |||||
10 | Shared dispositive power
1,255,468 | |||||
11 |
Aggregate amount beneficially owned by each reporting person
1,255,468 | |||||
12 | Check box if the aggregate amount in Row (11) excludes certain shares ¨
| |||||
13 | Percent of class represented by amount in Row (11)
5.2% | |||||
14 | Type of reporting person
PN |
Page 4 of 10 pages
CUSIP No.: 84651P100 |
1 | Name of reporting person S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Osmium Capital II, LP | |||||
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 Item 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
0 | ||||
8 | Shared voting power
1,197,699 | |||||
9 | Sole dispositive power
0 | |||||
10 | Shared dispositive power
1,197,699 | |||||
11 |
Aggregate amount beneficially owned by each reporting person
1,197,699 | |||||
12 | Check box if the aggregate amount in Row (11) excludes certain shares ¨
| |||||
13 | Percent of class represented by amount in Row (11)
5.0% | |||||
14 | Type of reporting person
PN |
Page 5 of 10 pages
CUSIP No.: 84651P100 |
1 | Name of reporting person S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Osmium Spartan, LP | |||||
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 Item 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
0 | ||||
8 | Shared voting power
327,743 | |||||
9 | Sole dispositive power
0 | |||||
10 | Shared dispositive power
327,743 | |||||
11 |
Aggregate amount beneficially owned by each reporting person
327,743 | |||||
12 | Check box if the aggregate amount in Row (11) excludes certain shares ¨
| |||||
13 | Percent of class represented by amount in Row (11)
1.4% | |||||
14 | Type of reporting person
PN |
Page 6 of 10 pages
CUSIP No.: 84651P100 |
1 | Name of reporting person S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Osmium Diamond, LP | |||||
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 Item 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
0 | ||||
8 | Shared voting power
269,300 | |||||
9 | Sole dispositive power
0 | |||||
10 | Shared dispositive power
269,300 | |||||
11 |
Aggregate amount beneficially owned by each reporting person
269,300 | |||||
12 | Check box if the aggregate amount in Row (11) excludes certain shares ¨
| |||||
13 | Percent of class represented by amount in Row (11)
1.1% | |||||
14 | Type of reporting person
PN |
Page 7 of 10 pages
EXPLANATORY NOTE
This Amendment No. 4 to Schedule 13D (Amendment No. 4) is being filed with respect to the Reporting Persons beneficial ownership of common stock, par value $0.001 per share, of Spark Networks, Inc. (Spark Networks or the Issuer). This Amendment No. 4 supplements the Schedule 13D previously filed on December 6, 2013 (the Schedule 13D) as amended by Amendment No. 1 filed on January 16, 2014 (Amendment No. 1), Amendment No. 2 filed on February 24, 2014 (Amendment No. 2), and Amendment No. 3 filed on March 10, 2014 filed on February 24, 2014 (such, amendment collectively with Amendment No. 1 and Amendment No. 2, the Previous Amendments). Each Item below amends and supplements the information disclosed under the corresponding Item of the Schedule 13D. Unless otherwise indicated herein, capitalized terms used but not defined in this Amendment No. 4 shall have the same meaning herein as are ascribed to such terms in the Schedule 13D, as amended by the Previous Amendments. Except as set forth herein, this Amendment No. 4 does not modify any of the information previously reported by the Reporting Persons in the Schedule 13D, as amended by the Previous Amendments.
ITEM 4. Purpose of Transaction.
The Reporting Persons purchased the Common Stock based on the belief that such securities, when purchased, were undervalued and represented an attractive investment opportunity. Although no Reporting Person has any specific plan or proposal to acquire or dispose of the Common Stock, consistent with its investment purpose, each Reporting Person at any time and from time to time may acquire additional Common Stock or dispose of any or all of its Common Stock depending upon an ongoing evaluation of the investment in the Common Stock, prevailing market conditions, other investment opportunities, liquidity requirements of the Reporting Persons, and/or other investment considerations. The purpose of the acquisitions of the Common Stock was for investment, and the acquisitions of the Common Stock were made in the ordinary course of business and were not made for the purpose of acquiring control of the Issuer.
Consistent with their investment purpose, the Reporting Persons may engage in communications with one or more stockholders of the Issuer, one or more officers of the Issuer and/or one or more members of the board of directors of the Issuer and/or one or more representatives of the Issuer regarding the Issuer, including but not limited to its operations, and plans of the Reporting Persons. On December 5, 2013, Mr. Lewis spoke with representatives of the Issuer expressing his desire to be added immediately to the Board of Directors of the Issuer (the Board).
On February 21, 2014, the Reporting Persons, through stockholder of record Fund I, pursuant to Section 2.9 of the Amended and Restated Bylaws, as amended, of the Issuer (the Bylaws), delivered to the Issuer a letter (the Nomination Letter) containing advance notice of stockholder nominations and proposals to be brought before the Issuers 2014 annual meeting of stockholders (the 2014 Annual Meeting). By this Nomination Letter, the Reporting Persons submitted:
(i) nominations for the following four (4) candidates for election to the Board: Stephen J. Davis, Michael J. McConnell, Walter L. Turek, and Mr. Lewis (collectively, the Stockholder Nominees); and
(ii) notice of the following three (3) proposals to be brought before the 2014 Annual Meeting (the Stockholder Proposals):
1. | Amendment of each of the Issuers Amended and Restated Certificate of Incorporation and the Bylaws to permit the Issuers stockholders to act by written consent in lieu of action at an annual or special meeting of the Issuer; |
2. | Amendment of the Bylaws to permit beneficial holders of the Issuers stock to submit stockholders proposals and director nominations; and |
3. | Amendment of the Bylaws to permit the Issuers stockholders to call special meetings of stockholders. |
In addition to the nomination of the Stockholder Nominees and notice of the Stockholder Proposals, the Reporting Persons expressed dissatisfaction in the Nomination Letter with the Issuers delays in updating the Board following the departure of former stockholder, Great Hill Partners, and its two directors from the Company and the Board. Further, the Reporting Persons criticized the Issuers corporate governance regime for its impediments to stockholder democracy and demanded that the Issuer grant greater access and Board accountability to stockholders.
Page 8 of 10 pages
These nominations and Stockholder Proposals were submitted prior to the Issuers February 23, 2014 deadline for such nominations pursuant to the process for stockholder nomination of candidates for directors set forth in the Bylaws and most recent proxy statement on Schedule 14A. The foregoing summary of the Nomination Letter is qualified in its entirety by reference to the full text of the Nomination Letter, a copy of which was filed as Exhibit 2 to Amendment No. 2, and is incorporated herein by reference.
During the week of March 3, 2014, the Reporting Persons discussed the Stockholder Nominees and Stockholder Proposals with representatives of the Issuer. On March 10, 2014, the Reporting Persons issued a press release regarding the Issuer, a copy of which was filed as Exhibit 3 to Amendment No. 3, and is incorporated herein by reference.
On April 17, 2014, the Reporting Persons filed a preliminary proxy statement (the Proxy Statement) with the SEC soliciting votes for the Issuers 2014 Annual Meeting to vote on the following matters:
1. | To elect the Stockholder Nominees to serve as directors on the Board until the Issuers 2015 annual meeting of stockholders and until their respective successors are duly elected; |
2. | To ratify the appointment of Ernst & Young LLP as the independent registered public accounting firm of the Issuer for the year ending December 31, 2014; |
3. | To consider and act upon a stockholder proposal regarding poison pills, if properly presented at the 2014 Annual Meeting; |
4. | To approve a stockholder proposal to amend the Companys Amended and Restated Bylaws to permit stockholders to call special meetings of stockholders, if properly presented at the 2014 Annual Meeting; |
5. | To approve a stockholder proposal to amend the Companys Amended and Restated Bylaws to allow beneficial stockholders to submit proposals and nominations for director under the Companys Amended and Restated Bylaws, if properly presented at the 2014 Annual Meeting; and |
6. | To transact such other business as may properly come before the 2014 Annual Meeting or any adjournments or postponements thereof. |
Proposals 4 and 5 were two of the Reporting Persons Stockholder Proposals.
The Reporting Persons may continue to discuss ideas that, if effected may result in a change in any of the following: the acquisition by persons of additional Common Stock of the Issuer, an extraordinary corporate transaction involving the Issuer, and/or other changes in the board of directors or management of the Issuer.
Except as disclosed above, none of the Reporting Persons has any other plans or proposals which relate to, or would result in, any of the matters referred to in paragraphs (a) through (j), inclusive, of the instructions to Item 4 of Schedule 13D. The Reporting Persons may, at any time and from time to time, review or reconsider their position and/or change their purpose and/or formulate plans or proposals with respect thereto.
ITEM 7. Material to be Filed as Exhibits.
Exhibit 1 Joint Filing Agreement
Page 9 of 10 pages
SIGNATURE
After reasonable inquiry and to the best of its knowledge and belief, the undersigned each certifies that the information with respect to it set forth in this Statement is true, complete and correct.
Dated: April 21, 2014
John H. Lewis | ||
Osmium Partners, LLC | ||
Osmium Capital, LP | ||
Osmium Capital II, LP | ||
Osmium Spartan, LP | ||
Osmium Diamond, LP | ||
By: |
/s/ John H. Lewis | |
John H. Lewis, for himself and as Managing Member of Osmium Partners, LLC, for itself and as General Partner of Osmium Capital, LP, Osmium Capital II, LP, Osmium Spartan, LP and Osmium Diamond, LP |
Page 10 of 10 pages
EXHIBIT INDEX
Exhibit 1 Joint Filing Agreement