UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
AMENDMENT NO. 9 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)
JANUARY 31, 2005
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(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, and on June 23, 2003 by Amendment No. 8, is hereby
further amended to read 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
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7 SOLE VOTING POWER
NUMBER OF 4,890,201 (see Item 5(a))
SHARES ----------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 0
EACH ----------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON WITH 4,890,201
----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY THE REPORTING PERSON
4,890,201
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGREGATE AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
35.4%
--------------------------------------------------------------------------------
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 ITEM 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 ----------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 0
EACH ----------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON WITH 442,995
----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY THE REPORTING PERSON
442,995
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGREGATE AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.2%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
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3
Page 4 of 9 of the Schedule 13D, as amended, is hereby further amended
to read in its entirety as follows:
SCHEDULE 13D
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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 ITEM 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 ----------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 0
EACH ----------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON WITH 20,044
----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY THE REPORTING PERSON
20,044
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGREGATE AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.15%
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14 TYPE OF REPORTING PERSON
PN
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4
Page 5 of 9 of the Schedule 13D, as amended, is hereby further amended
to read in its entirety as follows:
SCHEDULE 13D
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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
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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
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 774,500 (see Item 5(a))
SHARES ----------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 0
EACH ----------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON WITH 774,500
----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY THE REPORTING PERSON
774,500
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGREGATE AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.6%
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14 TYPE OF REPORTING PERSON
IN
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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 6,127,740 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) 1,936,500 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) 1,959,444 warrants (the
"Warrants"), which as of the date hereof may be
exercised for an aggregate of 1,959,444 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:
"William R. Grant, a Reporting Person, acquired in a
private transaction with the Issuer on January 31,
2005, 100,000 units at a purchase price of $0.50 per
unit for an aggregate amount of $50,000 in cash. The
units consist of 100,000 shares of Common Stock and
warrants to purchase an additional 100,000 shares of
Common Stock."
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 Shares
of Common Stock of Common Stock
into which Series which may be Percentage of
B, Series C and acquired Outstanding
Series D Preferred pursuant to Total of Shares of Common
Number of Shares Stock is exercise of Columns (2), Stock (see Note
Reporting Person of Common Stock Convertible Warrants (3) and (4) below)
================= ==================== ==================== ================ ================= ==================
Galen 1,152,611 2,038,869 1,698,721 4,890,201 35.4%
----------------- -------------------- -------------------- ---------------- ----------------- ------------------
Galen Intl 104,654 184,577 153,764 442,995 3.2%
----------------- -------------------- -------------------- ---------------- ----------------- ------------------
GEF 4,735 8,350 6,959 20,044 0.15%
----------------- -------------------- -------------------- ---------------- ----------------- ------------------
Grant 674,500 0 100,000 774,500 5.6%
----------------- -------------------- -------------------- ---------------- ----------------- ------------------
Total 1,936,500 2,231,796 1,959,444 6,127,740 44.35%
================= ==================== ==================== ================ ================= ==================
Note: The percentages shown in each row of column (6) were calculated,
for each respective row, by (i) adding the total in the bottom rows of columns
(3) and (4) to 9,624,007 (the number of shares of Common Stock outstanding as of
September 30, 2004, as set forth in the Issuer's Quarterly Report on Form 10-QSB
for the quarter then ended, plus the 100,000 shares of Common Stock acquired by
William R. Grant as reported herein (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: February 2, 2005 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