UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G
Under the Securities Exchange Act of 1934
(Amendment No. 3)*
Cell Therapeutics, Inc
Common Stock, no par value per share
(Title of Class of Securities)
February 14, 2003
(CUSIP Number: 150934107)
December 31, 2002
(Date of Event which Requires Filing
of this Statement)
Check the appropriate box to designate the rule pursuant to which this Schedule
is filed:
|_| Rule 13d-1(b)
|X| Rule 13d-1(c)
|_| Rule 13d-1(d)
*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 the
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).
Continued on following pages
Page 1 of 13 Pages
Exhibit Index: Page 12
SCHEDULE 13G
CUSIP No. 150934107 Page 2 of 13 Pages
--------------------------------------------------------------------------------
1. NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
PARAMOUNT CAPITAL ASSET MANAGEMENT, INC.
--------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) |_|
(b) |X|
--------------------------------------------------------------------------------
3. SEC USE ONLY
--------------------------------------------------------------------------------
4. CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
--------------------------------------------------------------------------------
NUMBER OF 5. SOLE VOTING POWER
SHARES 0
-----------------------------------------------------------------
BENEFICIALLY 6. SHARED VOTING POWER
OWNED BY 1,546,411
-----------------------------------------------------------------
EACH 7. SOLE DISPOSITIVE POWER
REPORTING 0
-----------------------------------------------------------------
PERSON 8. SHARED DISPOSITIVE POWER
WITH 1,546,411
--------------------------------------------------------------------------------
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,546,411
--------------------------------------------------------------------------------
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES
(SEE INSTRUCTIONS)
|_|
--------------------------------------------------------------------------------
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
4.73%
--------------------------------------------------------------------------------
12. TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
CO
--------------------------------------------------------------------------------
SCHEDULE 13G
CUSIP No. 150934107 Page 3 of 13 Pages
--------------------------------------------------------------------------------
1. NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
ARIES DOMESTIC FUND, L.P.
--------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) |_|
(b) |X|
--------------------------------------------------------------------------------
3. SEC USE ONLY
--------------------------------------------------------------------------------
4. CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
--------------------------------------------------------------------------------
NUMBER OF 5. SOLE VOTING POWER
SHARES 0
-----------------------------------------------------------------
BENEFICIALLY 6. SHARED VOTING POWER
OWNED BY 583,645
-----------------------------------------------------------------
EACH 7. SOLE DISPOSITIVE POWER
REPORTING 0
-----------------------------------------------------------------
PERSON 8. SHARED DISPOSITIVE POWER
WITH 583,645
--------------------------------------------------------------------------------
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
583,645
--------------------------------------------------------------------------------
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES
(SEE INSTRUCTIONS)
|X|
--------------------------------------------------------------------------------
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
1.79%
--------------------------------------------------------------------------------
12. TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
PN
--------------------------------------------------------------------------------
SCHEDULE 13G
CUSIP No. 150934107 Page 4 of 13 Pages
--------------------------------------------------------------------------------
1. NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
ARIES DOMESTIC FUND II, L.P.
--------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) |_|
(b) |X|
--------------------------------------------------------------------------------
3. SEC USE ONLY
--------------------------------------------------------------------------------
4. CITIZENSHIP OR PLACE OF ORGANIZATION
CAYMAN ISLANDS
--------------------------------------------------------------------------------
NUMBER OF 5. SOLE VOTING POWER
SHARES 0
-----------------------------------------------------------------
BENEFICIALLY 6. SHARED VOTING POWER
OWNED BY 119,372
-----------------------------------------------------------------
EACH 7. SOLE DISPOSITIVE POWER
REPORTING 0
-----------------------------------------------------------------
PERSON 8. SHARED DISPOSITIVE POWER
WITH 119,372
--------------------------------------------------------------------------------
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
119,372
--------------------------------------------------------------------------------
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES
(SEE INSTRUCTIONS)
|X|
--------------------------------------------------------------------------------
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
0.37%
--------------------------------------------------------------------------------
12. TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
PN
--------------------------------------------------------------------------------
SCHEDULE 13G
CUSIP No. 150934107 Page 5 of 13 Pages
--------------------------------------------------------------------------------
1. NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
ARIES MASTER FUND II
--------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) |_|
(b) |X|
--------------------------------------------------------------------------------
3. SEC USE ONLY
--------------------------------------------------------------------------------
4. CITIZENSHIP OR PLACE OF ORGANIZATION
CAYMAN ISLANDS
--------------------------------------------------------------------------------
NUMBER OF 5. SOLE VOTING POWER
SHARES 0
-----------------------------------------------------------------
BENEFICIALLY 6. SHARED VOTING POWER
OWNED BY 843,394
-----------------------------------------------------------------
EACH 7. SOLE DISPOSITIVE POWER
REPORTING 0
-----------------------------------------------------------------
PERSON 8. SHARED DISPOSITIVE POWER
WITH 843,394
--------------------------------------------------------------------------------
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
843,394
--------------------------------------------------------------------------------
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES
(SEE INSTRUCTIONS)
|X|
--------------------------------------------------------------------------------
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
2.58%
--------------------------------------------------------------------------------
12. TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
CO
--------------------------------------------------------------------------------
SCHEDULE 13G
CUSIP No. 150934107 Page 6 of 13 Pages
--------------------------------------------------------------------------------
1. NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
LINDSAY A. ROSENWALD, M.D.**
--------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) |_|
(b) |X|
--------------------------------------------------------------------------------
3. SEC USE ONLY
--------------------------------------------------------------------------------
4. CITIZENSHIP OR PLACE OF ORGANIZATION
UNITED STATES
--------------------------------------------------------------------------------
NUMBER OF 5. SOLE VOTING POWER
SHARES 1,579,510
-----------------------------------------------------------------
BENEFICIALLY 6. SHARED VOTING POWER
OWNED BY 1,546,411
-----------------------------------------------------------------
EACH 7. SOLE DISPOSITIVE POWER
REPORTING 1,579,510
-----------------------------------------------------------------
PERSON 8. SHARED DISPOSITIVE POWER
WITH 1,546,411**
--------------------------------------------------------------------------------
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,160,921
--------------------------------------------------------------------------------
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES
(SEE INSTRUCTIONS)
|_|
--------------------------------------------------------------------------------
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
9.66%
--------------------------------------------------------------------------------
12. TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IA
--------------------------------------------------------------------------------
----------
** Dr. Rosenwald disclaims beneficial ownership of the securities described
herein, except to the extent of his pecuniary interest therein, if any.
Page 7 of 13 Pages
Item 1(a) Name of Issuer:
Cell Therapeutics, Inc. (the "Issuer").
Item 1(b) Address of the Issuer's Principal Executive Offices:
201 ELLIOTT AVE W, STE 400
SEATTLE, WA 98119
PHONE: 206-270-7100
Item 2(a) Name of Person Filing:
This statement is filed on behalf of Paramount Capital Asset Management, Inc.
("Paramount Capital"), Aries Domestic Fund, L.P. ("Aries Domestic"), Aries
Domestic Fund II, L.P. ("Aries II"), Aries Master Fund II, a Cayman Island
exempted company ("Aries Fund") and Lindsay A. Rosenwald, M.D. ("Dr. Rosenwald"
and collectively, the "Reporting Persons").
Dr. Rosenwald is an investment banker, venture capitalist, fund manager and sole
stockholder of Paramount Capital. Paramount Capital is the General Partner to
Aries Domestic and Aries II. Paramount Capital is the Investment Manager to
Aries Fund.
This statement relates to Shares (as defined herein) held for the accounts of
Aries Domestic, Aries II and Aries Fund.
Item 2(b) Address of Principal Business Office or, if None, Residence:
The address of the principal business office of Paramount Capital, Aries
Domestic, Aries II and Dr. Rosenwald is 787 Seventh Avenue, 48th Floor, New
York, New York, 10019. The address of the principal business office of Aries
Fund is c/o Fortis Fund Services Cayman Limited, Grand Pavilion Commercial
Center, 802 West Bay Road, Grand Cayman, Cayman Islands.
Item 2(c) Citizenship:
1) Paramount Capital is a Subchapter S corporation incorporated
in Delaware;
2) Aries Domestic is a Delaware limited partnership;
3) Aries II is a Delaware limited partnership;
4) Aries Fund is a Cayman Islands exempted company; and
5) Dr. Rosenwald is a citizen of the United States.
Item 2(d) Title of Class of Securities:
Common Stock, no par value per share (the "Shares").
Item 2(e) CUSIP Number:
150934107
Page 8 of 13 Pages
Item 3. If this statement is filed pursuant to Rule 13d-1(b), or 13d-2(b) or
(c), check whether the person filing is a:
This Item 3 is not applicable.
Item 4. Ownership:
Item 4(a) Amount Beneficially Owned:
Each of the Reporting Persons may be deemed the beneficial owner of the
following number of Shares:
(i) Paramount Capital may be deemed to own 1,546,411 shares of
Common Stock.
(ii) Aries Domestic may be deemed the beneficial owner of 583,645
Shares.
(iii) Aries II may be deemed the beneficial owner of 119,372 Shares.
(iv) Aries Fund may be deemed the beneficial owner of 843,394
Shares.
(v) Dr. Rosenwald may be deemed the beneficial owner of 3,160,921
Shares. Dr. Rosenwald disclaims the beneficial ownership of
the securities beneficially owned by PCAM except to the extent
of his pecuniary interest therein, if any.
Item 4(b) Percent of Class:
(i) The number of Shares of which each of Paramount Capital may be
deemed to be the beneficial owner constitutes approximately 4.73% of the total
number of Shares outstanding.
(ii) The number of Shares of which Aries Domestic may be deemed to
be the beneficial owner constitutes approximately 1.79% of the total number of
Shares outstanding.
(iii) The number of Shares of which Aries II may be deemed to be the
beneficial owner constitutes approximately 0.37% of the total number of Shares
outstanding.
(iv) The number of Shares of which Aries Fund may be deemed to be
the beneficial owner constitutes approximately 2.58% of the total number of
Shares outstanding.
(v) The number of Shares of which Dr. Rosenwald may be deemed to be
the beneficial owner constitutes approximately 9.66% of the total number of
Shares outstanding.
Page 9 of 13 Pages
Item 4(c) Number of shares as to which such person has:
Paramount Capital
(i) Sole power to vote or direct the vote: 0
(ii) Shared power to vote or to direct the vote 1,546,411
(iii) Sole power to dispose or to direct the disposition of 0
(iv) Shared power to dispose or to direct the disposition of 1,546,411
Aries Domestic
(i) Sole power to vote or direct the vote: 0
(ii) Shared power to vote or to direct the vote 583,645
(iii) Sole power to dispose or to direct the disposition of 0
(iv) Shared power to dispose or to direct the disposition of 583,645
Aries II
(i) Sole power to vote or direct the vote: 0
(ii) Shared power to vote or to direct the vote 119,372
(iii) Sole power to dispose or to direct the disposition of 0
(iv) Shared power to dispose or to direct the disposition of 119,372
Aries Fund
(i) Sole power to vote or direct the vote: 0
(ii) Shared power to vote or to direct the vote 843,394
(iii) Sole power to dispose or to direct the disposition of 0
(iv) Shared power to dispose or to direct the disposition of 843,394
Dr. Rosenwald
(i) Sole power to vote or direct the vote: 1,579,411
(ii) Shared power to vote or to direct the vote 1,546,411
(iii) Sole power to dispose or to direct the disposition of 1,579,411
(iv) Shared power to dispose or to direct the disposition of 1,546,411
Item 5. Ownership of Five Percent or Less of a Class:
This Item 5 is not applicable.
Item 6. Ownership of More than Five Percent on Behalf of Another Person:
(i) Dr. Rosenwald, as the shareholder of Paramount Capital, has the
right to participate in the receipt of dividends from, or proceeds from the sale
of, Shares held by Paramount Capital in accordance with his ownership interests
in Paramount Capital.
Page 10 of 13 Pages
(ii) The partners of Aries Domestic have the right to participate in
the receipt of dividends from, or proceeds from the sale of, the securities held
for the account of Aries Domestic in accordance with their partnership interests
in Aries Domestic.
(iii) The partners of Aries II have the right to participate in the
receipt of dividends from, or proceeds from the sale of, the securities held for
the account of Aries Domestic in accordance with their partnership interests in
Aries II.
(iv) The shareholders of Aries Fund have the right to participate in
the receipt of dividends from, or proceeds from the sale of, the securities held
for the account of Aries Fund in accordance with their ownership interests in
Aries Fund.
Item 7. Identification and Classification of the Subsidiary Which Acquired
the Security Being Reported on by the Parent Holding Company:
This Item 7 is not applicable.
Item 8. Identification and Classification of Members of the Group:
This Item 8 is not applicable.
Item 9. Notice of Dissolution of Group:
This Item 9 is not applicable.
Item 10. Certification:
By signing below each of the Reporting Persons certifies that, to
the best of such person's knowledge and belief, the securities referred to above
were acquired and are held in the ordinary course of business and were not
acquired and are not held for the purpose of or with the effect of changing or
influencing the control of the Issuer of such securities and were not acquired
and are not held in connection with or as a participant in any transaction
having such purpose or effect.
Page 11 of 13 Pages
SIGNATURES
After reasonable inquiry and to the best of my knowledge and belief, the
undersigned certifies that the information set forth in this statement is true,
complete and correct.
Date: February 14, 2003 PARAMOUNT CAPITAL ASSET MANAGEMENT, INC.
By: /s/ Lindsay A. Rosenwald
-------------------------------------
Name: Lindsay A. Rosenwald, M.D.
Title: Chairman
ARIES DOMESTIC FUND, L.P.
By: Paramount Capital Asset Management,
Inc.
Its Investment Manager
By: /s/ Lindsay A. Rosenwald
-------------------------------------
Name: Lindsay A. Rosenwald, M.D.
Title: Chairman
ARIES MASTER FUND II
By: Paramount Capital Asset Management,
Inc.
Its Investment Manager
By: /s/ Lindsay A. Rosenwald
-------------------------------------
Name: Lindsay A. Rosenwald, M.D.
Title: Chairman
LINDSAY A. ROSENWALD, M.D.
/s/ Lindsay A. Rosenwald
----------------------------------------
Page 12 of 13 Pages
EXHIBIT INDEX
Page No.
--------
A. Joint Filing Agreement, dated as of February 14, 2003, by and
among Paramount Capital Asset Management, Inc., Aries Domestic
Fund, L.P., Aries Domestic Fund II, L.P., Aries Master Fund II
and Lindsay A. Rosenwald, M.D................................. 13
Page 13 of 13 Pages
EXHIBIT A
JOINT FILING AGREEMENT
The undersigned hereby agree that the statement on Schedule 13G with
respect to the Common Stock, no par value per share, of Cell Therapeutics, Inc.,
dated as of February 14, 2003, is, and any amendments thereto (including
amendments on Schedule 13D) signed by each of the undersigned shall be, filed on
behalf of each of us pursuant to and in accordance with the provisions of Rule
13d-1(k) under the Securities Exchange Act of 1934.
Date: February 14, 2003 PARAMOUNT CAPITAL ASSET MANAGEMENT, INC.
By: /s/ Lindsay A. Rosenwald
-------------------------------------
Name: Lindsay A. Rosenwald, M.D.
Title: Chairman
ARIES DOMESTIC FUND, L.P.
By: Paramount Capital Asset Management,
Inc.
Its Investment Manager
By: /s/ Lindsay A. Rosenwald
-------------------------------------
Name: Lindsay A. Rosenwald, M.D.
Title: Chairman
ARIES MASTER FUND II
By: Paramount Capital Asset Management,
Inc.
Its Investment Manager
By: /s/ Lindsay A. Rosenwald
-------------------------------------
Name: Lindsay A. Rosenwald, M.D.
Title: Chairman
LINDSAY A. ROSENWALD, M.D.
/s/ Lindsay A. Rosenwald
----------------------------------------