sc13d
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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. __)*
Grand Canyon Education, Inc.
(Name of Issuer)
Common Stock, $0.01 per value
(Title of Class of Securities)
38526M 106
(CUSIP Number)
Christopher C. Richardson
3300 West Camelback Road
Phoenix, Arizona 85017
602-639-7500
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
November 25, 2008
(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 § §240.1 3d- l(e), 240.13d-l(f) or 240.13d- l(g), check the
following box. o
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 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 (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).
Persons who respond to the collection of information contained in this form are not
required to respond unless the form displays a currently valid OMB control number.
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1 |
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NAMES OF REPORTING PERSONS.
Brent D. Richardson |
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2 |
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
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(a) o |
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(b) þ (See Item 4) |
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3 |
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SEC USE ONLY |
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4 |
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SOURCE OF FUNDS (SEE INSTRUCTIONS) |
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PF |
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5 |
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CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |
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o |
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6 |
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CITIZENSHIP OR PLACE OF ORGANIZATION |
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United States
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7 |
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SOLE VOTING POWER |
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NUMBER OF |
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0 |
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SHARES |
8 |
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SHARED VOTING POWER |
BENEFICIALLY |
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BY OWNED BY |
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19,516,243 (See Item 4) |
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EACH |
9 |
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SOLE DISPOSITIVE POWER |
REPORTING |
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PERSON |
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0 |
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WITH |
10 |
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SHARED DISPOSITIVE POWER |
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3,503,172 (See Item 5) |
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11 |
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AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
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19,516,243 (See Item 4 and Item 5) |
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12 |
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CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) |
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o
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13 |
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PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) |
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43.0%* |
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14 |
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TYPE OF REPORTING PERSON (SEE INSTRUCTIONS) |
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IN |
* Based on 45,415,838 shares of Grand Canyon Education, Inc. common stock outstanding as of December 4, 2008.
1
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1 |
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NAMES OF REPORTING PERSONS.
Christopher C. Richardson |
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2 |
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
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(a) o |
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(b) þ (See Item 4) |
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3 |
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SEC USE ONLY |
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4 |
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SOURCE OF FUNDS (SEE INSTRUCTIONS) |
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PF |
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5 |
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CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |
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o |
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6 |
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CITIZENSHIP OR PLACE OF ORGANIZATION |
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United States
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7 |
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SOLE VOTING POWER |
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NUMBER OF |
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0 |
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SHARES |
8 |
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SHARED VOTING POWER |
BENEFICIALLY |
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BY OWNED BY |
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19,516,243 (See Item 4) |
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EACH |
9 |
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SOLE DISPOSITIVE POWER |
REPORTING |
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PERSON |
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0 |
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WITH |
10 |
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SHARED DISPOSITIVE POWER |
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3,504,036 (See Item 5) |
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11 |
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AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
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19,516,243 (See Item 4 and Item 5) |
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12 |
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CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) |
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o
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13 |
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PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) |
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43.0%* |
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14 |
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TYPE OF REPORTING PERSON (SEE INSTRUCTIONS) |
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IN |
* Based on 45,415,838 shares of Grand Canyon Education, Inc. common stock outstanding as of December 4, 2008.
2
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1 |
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NAMES OF REPORTING PERSONS.
Rich Crow Enterprises, LLC |
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2 |
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
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(a) o |
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(b) þ (See Item 4) |
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3 |
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SEC USE ONLY |
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4 |
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SOURCE OF FUNDS (SEE INSTRUCTIONS) |
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WC |
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5 |
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CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |
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o |
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6 |
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CITIZENSHIP OR PLACE OF ORGANIZATION |
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Arizona
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7 |
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SOLE VOTING POWER |
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NUMBER OF |
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0 |
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SHARES |
8 |
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SHARED VOTING POWER |
BENEFICIALLY |
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BY OWNED BY |
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10,047,485 (See Item 5) |
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EACH |
9 |
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SOLE DISPOSITIVE POWER |
REPORTING |
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PERSON |
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0 |
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WITH |
10 |
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SHARED DISPOSITIVE POWER |
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10,047,485 (See Item 5) |
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11 |
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AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
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10,047,485 (See Item 5) |
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12 |
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CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) |
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o
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13 |
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PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) |
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22.1%* |
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14 |
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TYPE OF REPORTING PERSON (SEE INSTRUCTIONS) |
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OO |
* Based on 45,415,838 shares of Grand Canyon Education, Inc. common stock outstanding as of December 4, 2008.
3
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1 |
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NAMES OF REPORTING PERSONS.
Masters Online, LLC |
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2 |
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
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(a) o |
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(b) þ (See Item 4) |
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3 |
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SEC USE ONLY |
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4 |
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SOURCE OF FUNDS (SEE INSTRUCTIONS) |
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WC |
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5 |
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CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |
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o |
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6 |
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CITIZENSHIP OR PLACE OF ORGANIZATION |
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Arizona
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7 |
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SOLE VOTING POWER |
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NUMBER OF |
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0 |
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SHARES |
8 |
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SHARED VOTING POWER |
BENEFICIALLY |
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BY OWNED BY |
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864,793 (See Item 5) |
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EACH |
9 |
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SOLE DISPOSITIVE POWER |
REPORTING |
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PERSON |
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0 |
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WITH |
10 |
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SHARED DISPOSITIVE POWER |
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864,793 (See Item 5) |
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11 |
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AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
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864,793 (See Item 5) |
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12 |
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CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) |
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o
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13 |
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PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) |
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1.9%* |
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14 |
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TYPE OF REPORTING PERSON (SEE INSTRUCTIONS) |
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OO |
* Based on 45,415,838 shares of Grand Canyon Education, Inc. common stock outstanding as of December 4, 2008.
4
Item 1. Security and Issuer.
This Schedule 13D (the Schedule 13D) relates to the shares of common stock, par value $0.01
per share (the Shares) of Grand Canyon Education, Inc., a Delaware corporation (the Issuer).
The address of the principal executive offices of the Issuer is 3300 West Camelback Road, Phoenix,
Arizona 85017.
Item 2. Identity and Background.
This Schedule 13D is being filed by Brent D. Richardson, Christopher C. Richardson, Rich Crow
Enterprises, LLC (Rich Crow), and Masters Online, LLC (Masters Online and collectively, the
Reporting Persons).
Brent D. Richardson, who is the Executive Chairman of the Issuer, and Christopher C.
Richardson, who is the General Counsel of the Issuer, are both directors of the Issuer. Brent D.
Richardson and Christopher C. Richardson are also U.S. citizens and their principal business
address is 3300 West Camelback Road, Phoenix, Arizona 85017.
Brent D. Richardson and Christopher C. Richardson, among others, are members of Rich Crow and
Masters Online, the principal business address for both of which is 7227 N. 16th Street, #190,
Phoenix, Arizona 85020. Rich Crow and Masters Online are Arizona limited liability companies and
are member managed.
During the last five years, none of the Reporting Persons has been convicted in any criminal
proceeding (excluding traffic violations or similar misdemeanors), nor has any of them been a party
to a civil proceeding of a judicial or administrative body of competent jurisdiction as a result of
which proceeding he or it was or is subject to a judgment, decree or final order either enjoining
future violations of, or prohibiting or mandating activities subject to, United States federal or
state securities laws, or finding any violation with respect to such laws.
Item 3. Source and Amount of Funds or Other Consideration.
See Item 4 below.
Item 4. Purpose of Transaction.
In connection with the initial public offering of the Issuers Shares (the Offering),
certain of the Issuers stockholders entered into a proxy and voting agreement (the Proxy) that
became effective on November 25, 2008, the closing of the Offering, pursuant to which such persons
granted to Brent D. Richardson, the Issuers Executive Chairman and a director, and Christopher C.
Richardson, the Issuers General Counsel and director, a five-year irrevocable proxy to exercise
voting authority with respect to all Shares held by such persons, excluding certain shares owned by
one stockholder. The Reporting Persons disclaim status as a group for purposes of Section 13 of
the Securities Exchange Act of 1934, as amended, except and to the extent of the Proxy.
Brent D. Richardson and Christopher C. Richardson intend to continue to participate in the
management and operations of the Issuer. Except as is consistent with their respective positions
with the Issuer, neither Brent D. Richardson nor Christopher C. Richardson have any plans or
proposals that would result in any of the actions specified in clauses (a) through (j) of the
instructions to Item 4 of Schedule 13D.
Item 5. Interest in Securities of the Issuer.
Brent D. Richardson is the beneficial owner of a 32% interest in Rich Crow and the beneficial
owner of a 33.3% interest in Masters Online. Christopher C. Richardson is the beneficial owner of
a 32% interest in Rich Crow and the beneficial owner of a 33.4% interest in Masters Online.
Excluding Shares that may be beneficially owned by Brent D. Richardson and Christopher C.
Richardson as a result of the Proxy, beneficial ownership for Brent D. Richardson and Christopher
C. Richardson represents Shares attributable to, and beneficially owned by, each in their
respective capacities as members of Rich Crow and Masters Online.
(a, b) Brent D. Richardson. As a result of and subject to the terms of the Proxy, as
of the date hereof, Brent D. Richardson may be deemed to be the beneficial owner of 19,516,243
Shares, constituting approximately 43.0% of the Shares outstanding of the Issuer, based upon
45,415,838 Shares outstanding as of December 4, 2008. Beneficial ownership for Brent D. Richardson
consists of:
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(i) |
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10,047,485 Shares held by Rich Crow, of which Brent D.
Richardson has a 32% interest; |
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(ii) |
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864,793 Shares held by Masters Online, of which Brent D.
Richardson has a 33.3% interest; |
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(iii) |
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2,971,144 Shares held by Significant Ventures, LLC; |
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(iv) |
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198,456 Shares held by 220 GCU, L.P.; |
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(v) |
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1,391,742 Shares held by 220 Education, L.P.; |
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(vi) |
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1,113,411 Shares held by 220 SigEd, L.P.; |
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(vii) |
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2,597,938 Shares held by SV One, L.P.; |
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(viii) |
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278,350 Shares held by the Carey Family Trust; and |
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(ix) |
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52,924 Shares held by Lavaca SigEd, L.P. |
Brent D. Richardson disclaims beneficial ownership of the Shares held by Significant Ventures,
LLC, 220 GCU, L.P., 220 Education, L.P., 220 SigEd, L.P., SV One, L.P., the Carey Family Trust, and
Lavaca SigEd, L.P., except to the extent of his voting interest in such Shares as a result of the
Proxy. Brent D. Richardson also disclaims beneficial ownership of 6,832,290 Shares held by Rich
Crow that are beneficially owned by other members of Rich Crow and 576,817 Shares held by Masters
Online that are beneficially owned by other members of Masters Online.
Brent D. Richardson has the sole power to vote or direct the vote of 0 Shares; has the shared
power to vote or direct the vote of 19,516,243 Shares; has sole power to dispose or direct the
disposition of 0 Shares; and has shared power to dispose or direct the disposition of 3,503,172
Shares.
(a, b) Christopher C. Richardson. As a result of and subject to the terms of the
Proxy, as of the date hereof, Christopher C. Richardson may be deemed to be the beneficial owner of
19,516,243 Shares, constituting approximately 43.0% of the Shares outstanding of the Issuer, based
upon 45,415,838 Shares outstanding as of December 4, 2008. Beneficial ownership for Christopher C.
Richardson consists of:
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(i) |
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10,047,485 Shares held by Rich Crow, of which Christopher C.
Richardson has a 32% interest; |
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(ii) |
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864,793 Shares held by Masters Online, of which Christopher C.
Richardson has a 33.4% interest; |
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(iii) |
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2,971,144 Shares held by Significant Ventures, LLC; |
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(iv) |
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198,456 Shares held by 220 GCU, L.P.; |
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(v) |
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1,391,742 Shares held by 220 Education, L.P.; |
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(vi) |
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1,113,411 Shares held by 220 SigEd, L.P.; |
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(vii) |
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2,597,938 Shares held by SV One, L.P.; |
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(viii) |
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278,350 Shares held by the Carey Family Trust; and |
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(ix) |
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52,924 Shares held by Lavaca SigEd, L.P. |
Christopher C. Richardson disclaims beneficial ownership of the Shares held by Significant
Ventures, LLC, 220 GCU, L.P., 220 Education, L.P., 220 SigEd, L.P., SV One, L.P., the Carey Family
Trust, and Lavaca SigEd, L.P., except to the extent of his voting interest in such Shares as a
result of the Proxy. Christopher C. Richardson also disclaims beneficial ownership of 6,832,290
Shares held by Rich Crow that are beneficially owned by other members of Rich Crow and 575,952
Shares held by Masters Online that are beneficially owned by other members of Masters Online.
Christopher C. Richardson has the sole power to vote or direct the vote of 0 Shares; has the
shared power to vote or direct the vote of 19,516,243 Shares; has sole power to dispose or direct
the disposition of 0 Shares; and has shared power to dispose or direct the disposition of 3,504,036
Shares.
(a, b) Rich Crow. As of the date hereof, Rich Crow may be deemed to be the beneficial
owner of 10,047,485 Shares, constituting approximately 22.1% of the Shares outstanding of the
Issuer, based upon 45,415,838 Shares outstanding as of December 4, 2008.
Rich Crow has the sole power to vote or direct the vote of 0 Shares; has the shared power to
vote or direct the vote of 10,047,485 Shares; has sole power to dispose or direct the disposition
of 0 Shares; and has shared power to dispose or direct the disposition of 10,047,485 Shares.
(a, b) Masters Online. As of the date hereof, Masters Online may be deemed to be the
beneficial owner of 864,793 Shares, constituting approximately 1.9% of the Shares outstanding of
the Issuer, based upon 45,415,838 Shares outstanding as of December 4, 2008.
Masters Online has the sole power to vote or direct the vote of 0 Shares; has the shared power
to vote or direct the vote of 864,793 Shares; has sole power to dispose or direct the disposition
of 0 Shares; and has shared power to dispose or direct the disposition of 864,793 Shares.
Item 6. Contracts, Arrangements, Understandings or Relationships With Respect to Securities
of the Issuer.
On September 17, 2008, Rich Crow and Masters Online entered into an amended investor rights
agreement (the Investor Rights Agreement) with the Issuer, Endeavour Capital Fund IV, L.P.,
Endeavour Associates Fund IV, L.P., and Endeavour Capital Parallel Fund, IV, L.P. (collectively,
the Endeavour Funds), and certain other stockholders of the Issuer. Pursuant to the Investor
Rights Agreement, the Issuer agreed, under certain circumstances, to register Shares held by each
of the parties to the agreement under the Securities Act of 1933, as amended. The registration
rights provisions of the Investor Rights Agreement grant to the Endeavour Funds the right,
beginning 90 days following the completion of the Offering, to cause the Issuer, at its expense, to
use its reasonable commercial efforts to register Shares held by the Endeavour Funds for public
resale, subject to certain limitations. The exercise of this right is limited to two requests. In
the event that the Issuer registers any of its Shares following completion of the Offering, the
Endeavour Funds and the other holders are entitled to piggyback registration rights in which they
may require the Issuer to include their Shares in future registration statements that the Issuer
may file, either for its own account or for the account of other security holders exercising
registration rights. In addition, after the Issuer has completed the Offering, these entities have
the right to request that their Shares be registered on a Registration Statement on Form S-3 so
long as the anticipated aggregate sales price of such Shares as of the date of filing of the
Registration Statement on Form S-3 is at least $1 million. These registration rights are subject
to various conditions and limitations, including the right of the underwriters of an offering to
limit the number of registrable securities that may be included in the offering. The Issuer is
generally required to bear all of the expenses of these registrations, except underwriting
discounts and selling commissions and transfer taxes, if any. Registration of any securities
pursuant to these registration rights will result in shares becoming freely tradable without
restriction under the Securities Act of 1933, as amended, immediately upon effectiveness of such
registration.
Item 7. Material to be Filed as Exhibits.
Exhibit 1. Joint Filing Agreement.
Exhibit 2. Voting Agreement.
Exhibit 3. Investor Rights Agreement.
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.
December 5, 2008
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By:
Name:
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/s/ Brent D. Richardson
Brent D. Richardson
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By:
Name:
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/s/ Christopher C. Richardson
Christopher C. Richardson
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RICH CROW ENTERPRISES, LLC |
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By:
Name:
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/s/ Brent D. Richardson
Brent D. Richardson
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Title:
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Member |
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MASTERS ONLINE, LLC |
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By:
Name:
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/s/ Brent D. Richardson
Brent D. Richardson
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Title:
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Member |
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