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CUSIP No. 719068 10 8 SCHEDULE 13D/A Page 1 of 11
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 5)
PHOENIX GOLD INTERNATIONAL, INC.
(Name of Issuer)
Common Stock, par value $0.01 per share
(Title of Class of Securities)
719068 10 8
(CUSIP Number)
Nelson Obus
Wynnefield Capital, Inc.
450 7th Avenue, Suite 509
New York, New York 10123
(212) 760-0134
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
January 23, 2002
(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 ss.ss.240.13d-1(e), 240.13d-(f) or 240.13d-1(g), check the
following box. [ ]
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).
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CUSIP No. 719068 10 8 SCHEDULE 13D/A Page 2 of 11
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1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
Wynnefield Partners Small Cap Value, L.P.
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2. Check the Appropriate Box if a Member of a Group (See
Instructions)
(a) [X]
(b)
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3. SEC Use Only
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4. Source of Funds (See Instructions) WC
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5. Check if Disclosure of Legal Proceedings Is Required Pursuant
to Items 2(d) or 2(e) [ ]
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6. Citizenship or Place of Organization:
Delaware
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7. Sole Voting Power:
NUMBER OF 194,636
SHARES ------------------------------------------------------------
BENEFICIALLY 8. Shared Voting Power
OWNED BY 221,314
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EACH 9. Sole Dispositive Power:
REPORTING 194,636
PERSON ------------------------------------------------------------
10. Shared Dispositive Power:
WITH
221,314
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11. Aggregate Amount Beneficially Owned by Each Reporting Person:
415,950
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12. Check if the Aggregate Amount in Row (11) Excludes Certain
Shares (See Instructions) [ ]
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13. Percent of Class Represented by Amount in Row (11): 13.8%
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14. Type of Reporting Person (See Instructions)
PN
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CUSIP No. 719068 10 8 SCHEDULE 13D/A Page 3 of 11
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1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
Wynnefield Partners Small Cap Value, L.P. I
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2. Check the Appropriate Box if a Member of a Group (See
Instructions)
(a) [X]
(b)
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3. SEC Use Only
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4. Source of Funds (See Instructions) WC
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5. Check if Disclosure of Legal Proceedings Is Required Pursuant
to Items 2(d) or 2(e) [ ]
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6. Citizenship or Place of Organization:
Delaware
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7. Sole Voting Power:
NUMBER OF 135,764
SHARES ------------------------------------------------------------
BENEFICIALLY 8. Shared Voting Power
OWNED BY 280,186
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EACH 9. Sole Dispositive Power:
REPORTING 135,764
PERSON ------------------------------------------------------------
10. Shared Dispositive Power:
WITH
280,186
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11. Aggregate Amount Beneficially Owned by Each Reporting Person:
415,950
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12. Check if the Aggregate Amount in Row (11) Excludes Certain
Shares (See Instructions) [ ]
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13. Percent of Class Represented by Amount in Row (11): 13.8%
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14. Type of Reporting Person (See Instructions)
PN
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CUSIP No. 719068 10 8 SCHEDULE 13D/A Page 4 of 11
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1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
Wynnefield Partners Small Cap Value Offshore Fund, Ltd.
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2. Check the Appropriate Box if a Member of a Group (See
Instructions)
(a) [X]
(b)
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3. SEC Use Only
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4. Source of Funds (See Instructions) WC
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5. Check if Disclosure of Legal Proceedings Is Required Pursuant
to Items 2(d) or 2(e) [ ]
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6. Citizenship or Place of Organization:
Cayman Islands
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7. Sole Voting Power:
NUMBER OF 85,550
SHARES ------------------------------------------------------------
BENEFICIALLY 8. Shared Voting Power
OWNED BY 330,400
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EACH 9. Sole Dispositive Power:
REPORTING 85,550
PERSON ------------------------------------------------------------
10. Shared Dispositive Power:
WITH
330,400
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11. Aggregate Amount Beneficially Owned by Each Reporting Person:
415,950
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12. Check if the Aggregate Amount in Row (11) Excludes Certain
Shares (See Instructions) [ ]
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13. Percent of Class Represented by Amount in Row (11): 13.8%
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14. Type of Reporting Person (See Instructions)
PN
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CUSIP No. 719068 10 8 SCHEDULE 13D/A Page 5 of 11
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SCHEDULE 13D/A
Filed pursuant to Rule 13d-2
Item 1. Security and Issuer
This Statement on Schedule 13D/A (this "Statement") relates to
common stock, $0.01 par value per share (the "Common Stock"), of PHOENIX GOLD
INTERNATIONAL, INC., an Oregon corporation ("Issuer"). The principal executive
offices of the Issuer are located at 9300 North Decatur Street, Portland, Oregon
97203. This statement amends and restates in its entirety that certain Schedule
13D/A filed by the "Reporting Persons" on September 21, 2000.
The aggregate number of shares beneficially owned by the members of
the Group identified in this filing is 415,950 shares, or 13.8% of the Common
Stock shown as outstanding on the Issuer's most recent Form 10-K.
Item 2. Identity and Background
This Statement is filed by Wynnefield Partners Small Cap Value, L.P.
("Wynnefield"), Wynnefield Partners Small Cap Value, L.P. I ("Wynnefield I"),
and Wynnefield Small Cap Value Offshore Fund, Ltd. ("Wynnefield Offshore")
(collectively the "Reporting Persons" and/or the "Wynnefield Group"). This
Statement also includes information about the following persons (collectively,
the "Controlling Persons"): Wynnefield Capital Management, LLC ("WCM"),
Wynnefield Capital, Inc. ("Capital"), Nelson Obus ("Obus") and Joshua Landes
("Landes"). The Reporting Persons and the Controlling Persons are sometimes
collectively referred to as the "Item 2 Persons." The Reporting Persons have
included as APPENDIX A to this Statement on Schedule 13D an agreement in writing
that this Statement is filed on behalf of each of them.
REPORTING PERSONS
Wynnefield and Wynnefield I are Delaware limited partnerships.
Wynnefield Offshore is a Cayman Island private investment company. The principal
business of each Reporting Person is the purchase, sale, exchange, acquisition
and holding of investment securities. The principal address of each Reporting
Person, which also serves as its principal office, is 450 7th Avenue, Suite 509,
New York, New York 10123.
CONTROLLING PERSONS
The principal address of each Controlling Person, which also serves
as such person's principal office, is 450 7th Avenue, Suite 509, New York, New
York 10123.
Wynnefield:
WCM, a New York limited liability company, is the general partner of
Wynnefield. The principal business of WCM is money management and acting as an
advisor to Wynnefield and other entities and activities related thereto.
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CUSIP No. 719068 10 8 SCHEDULE 13D/A Page 6 of 11
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Obus and Landes, directly and through WCM, control Wynnefield. The
principal occupation of Obus and Landes is financial management.
Wynnefield I:
WCM, a New York limited liability company, is the general partner of
Wynnefield I. The principal business of WCM is money management and acting as an
advisor to Wynnefield I and other entities and activities related thereto.
Obus and Landes, directly and through WCM, control Wynnefield I. The
principal occupation of Obus and Landes is financial management.
Wynnefield Offshore:
Capital, a Delaware corporation, is the investment manager of
Wynnefield Offshore. The principal business of Capital is money management and
acting as an advisor to Wynnefield Offshore and other entities and activities
related thereto. Obus and Landes are the directors, principal executive officers
and controlling shareholders of Capital. The principal occupation of Obus and
Landes is financial management.
During the last five (5) years, no Item 2 Person has been convicted
in any criminal proceeding (excluding traffic violations or similar
misdemeanors) and no Item 2 Person was a party to a civil proceeding of a
judicial or administrative body of competent jurisdiction such that, as a result
of such proceeding, any Item 2 Person 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.
Obus and Landes are citizens of the United States.
Item 3. Source and Amount of Funds or Other Consideration
The source of the funds used by each of the Reporting Persons to
purchase the securities as described below was working capital.
Wynnefield acquired 194,636 shares of Common Stock from May 3, 1995
through December 21, 1999 on the open market or in private transactions at
prices ranging from $1.25 to $10.00.
Wynnefield I acquired 135,764 shares of Common Stock from November
4, 1997 through December 21, 1999 on the open market or in private transactions
at prices ranging from $1.25 to $5.37.
Wynnefield Offshore acquired 85,550 shares of Common Stock from
February 4, 1997 through December 30, 1998 on the open market or in private
transactions at prices ranging from $1.26 to $5.75.
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CUSIP No. 719068 10 8 SCHEDULE 13D/A Page 7 of 11
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Item 4. Purpose of Transaction
Each member of the Wynnefield Group originally acquired the Shares
reported in Item 5 below for investment purposes only and has continued to
monitor the efforts of the Issuer.
The Wynnefield Group believes that management and the directors have
not taken effective steps to remedy the lack of shareholder value. Wynnefield
has been dissatisfied with the lack of effective management initiatives to
create shareholder value and has frequently expressed its views to management
directors of the Issuer to no avail.
On January 22, 2002, the Wynnefield Group sent the letter attached
hereto as Exhibit 99.1 to the Issuer's executive management and directors. The
letter sets forth Wynnefield's reasons for submitting a shareholder proposal
that will be considered at the Issuer's Annual Meeting of Shareholders on
February 12, 2002. That shareholder proposal, like an earlier proposal submitted
by the Wynnefield Group on September 6, 2000, requests the implementation of
cumulative voting to elect the Issuer's Board of Directors.
If the shareholder proposal is approved by the shareholders and
cumulative voting is implemented, the Wynnefield Group may nominate an
individual for director. Cumulative voting would permit the Wynnefield Group to
vote its shares with those of other outside minority shareholders representing
approximately three percent of the outstanding shares in order to elect an
independent director to the Issuer's Board of Directors.
The Wynnefield Group wishes to utilize cumulative voting to elect a
single independent director with the purpose of further encouraging the Board
and management to enhance shareholder value.
The Wynnefield Group has also urged management to consider measures
to enhance shareholder value, such as engaging in the sale of the corporation,
seeking strategic partnerships or combinations to improve the Issuer's position
in the industry, or a "going private" transaction in which shares of all
minority holders would be purchased at a fair price. The Wynnefield Group may in
the future determine to: (i) acquire additional securities of the Issuer through
open market purchases, private agreements or otherwise, (ii) dispose of all or a
portion of the securities of the Issuer owned by them, or (iii) consider plans
or proposals which would relate to or result in: (a) the acquisition by any
person of additional securities of the Issuer; (b) any extraordinary corporate
transaction such as a merger, reorganization or liquidation, involving the
Issuer or any of its subsidiaries; (c) the sale or transfer of a material amount
of assets of the Issuer or any of its subsidiaries; (d) any change in the board
of directors or management of the Issuer, including any plans or proposals to
change the number or terms of directors or to fill any existing vacancies on the
board of directors of the Issuer; (e) any material change in the present
capitalization or dividend policy of the Issuer; (f) any other material change
in the Issuer's business or corporate structure; (g) changes in the Issuer's
charter, bylaws or instruments; and (h) any other action whether or not similar
to those enumerated above. The Reporting Persons also reserve the right to take
other actions to influence the management of the Issuer should they deem such
actions appropriate.
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CUSIP No. 719068 10 8 SCHEDULE 13D/A Page 8 of 11
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Item 5. Interest in Securities of the Issuer
(a) The following table provides the aggregate number and
percentage of Common Stock beneficially owned by the Reporting
Persons on January 23, 2002 (based on 3,006,945 shares of
Common Stock outstanding as reported in the Issuer's Form 10-K
for fiscal year 2001).
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Wynnefield Wynnefield I Wynnefield Total
Offshore
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Common Stock 194,636 135,764 85,550 415,950
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Percentage 6.5% 4.5% 2.8% 13.8%
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*Common Stock beneficially owned as a percent of 3,006,945 shares of
Common Stock.
Controlling Persons
Each of WCM, Obus and Landes may be deemed to be the beneficial
owner of the reported securities beneficially owned by Wynnefield.
Each of WCM, Obus and Landes may be deemed to be the beneficial
owner of the reported securities beneficially owned by Wynnefield I.
Each of Capital, Obus and Landes may be deemed to be beneficial
owners of the securities owned by Wynnefield Offshore.
(b) Reporting Persons
Each of the Reporting Persons has the sole power to vote or direct
the vote and to dispose or direct the disposition of the reported
securities it holds.
(c) Not applicable.
(d) Not applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to
Securities of the Issuer.
On September 6, 2000, the Wynnefield Group submitted to the Issuer a
shareholder proposal to be voted on at the 2001 Annual Meeting of the
Shareholders of the Issuer. The shareholder proposal requested the
implementation of cumulative voting to elect the Issuer's Board of Directors,
and was omitted by the Issuer from its proxy materials for the 2001 Annual
Meeting. On September 5, 2001, the Wynnefield Group submitted a substantially
identical proposal that will be considered at the 2002 Annual Meeting of
Shareholders on February 12, 2002.
If the shareholder proposal is approved by the shareholders and
cumulative voting is implemented, the Wynnefield Group may nominate an
individual for director. Cumulative voting
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CUSIP No. 719068 10 8 SCHEDULE 13D/A Page 9 of 11
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would permit the Wynnefield Group to vote its shares with those of other outside
minority shareholders representing approximately three percent of the
outstanding shares in order to elect an independent director to the Issuer's
Board of Directors.
The Wynnefield Group wishes to utilize cumulative voting to elect a
single independent director with the purpose of further encouraging the Board
and management to enhance shareholder value.
Item 7. Material to be filed as Exhibits
Exhibit No. Description
99.1 Letter to Issuer's management and Board of Directors,
dated January 23, 2002.
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CUSIP No. 719068 10 8 SCHEDULE 13D/A Page 10 of 11
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SIGNATURES
After reasonable inquiry and to the best of their knowledge and
belief, the undersigned certify that the information set forth in this Statement
is true, complete, and correct.
Date: January 24, 2002.
WYNNEFIELD PARTNERS SMALL CAP VALUE, LP
By: Wynnefield Capital Management,
LLC, its general partner
/s/ Nelson Obus
------------------------------------
Name: Nelson Obus
Title: Managing Member
WYNNEFIELD PARTNERS SMALL CAP VALUE, LP I
By: Wynnefield Capital Management,
LLC, its general partner
/s/ Nelson Obus
------------------------------------
Name: Nelson Obus
Title: Managing Member
WYNNEFIELD SMALL CAP VALUE OFFSHORE FUND, LTD.
By: Wynnefield Capital, Inc.,
its general partner
/s/ Nelson Obus
------------------------------------
Name: Nelson Obus
Title: President
Attention: Intentional misstatements or omissions of fact constitute federal
criminal violations (See 18 U.S.C. 1001).
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CUSIP No. 719068 10 8 SCHEDULE 13D/A Page 11 of 11
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APPENDIX A
JOINT FILING AGREEMENT
In accordance with Rule 13d-1(k) under the Securities Exchange Act
of 1934, as amended, the persons named below agree to the joint filing on behalf
of each of them of a Statement on Schedule 13D/A (including amendments thereto)
with respect to the common stock and depository receipts of Phoenix Gold
International, Inc. This Joint Filing Agreement shall be included as an exhibit
to such filing. In evidence thereof, each of the undersigned, being duly
authorized where appropriate, hereby executes this Joint Filing Agreement as of
the 24th day of January, 2002.
WYNNEFIELD PARTNERS SMALL CAP VALUE, LP
By: Wynnefield Capital Management,
LLC, its general partner
/s/ Nelson Obus
------------------------------------
Name: Nelson Obus
Title: Managing Member
WYNNEFIELD PARTNERS SMALL CAP VALUE, LP I
By: Wynnefield Capital Management,
LLC, its general partner
/s/ Nelson Obus
------------------------------------
Name: Nelson Obus
Title: Managing Member
WYNNEFIELD SMALL CAP VALUE OFFSHORE FUND, LTD.
By: Wynnefield Capital, Inc.,
its general partner
/s/ Nelson Obus
------------------------------------
Name: Nelson Obus
Title: President