UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
TeamStaff, Inc.
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(Name of Issuer)
Common Stock, $.001 par value
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(Title of Class of Securities)
87815U204
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(CUSIP Number)
Wynnefield Partners Small Cap Value, L.P.
450 Seventh Avenue, Suite 509
New York, New York 10123
Attention: Mr. Nelson Obus
212-760-0134
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(Name, Address and Telephone Number of Person Authorized
to Receive Notices and Communications)
March 9, 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 ss.ss. 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the
following box. [X].
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CUSIP NO. 87815U204
---------------------------- -------------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (entities only)
Wynnefield Partners Small Cap Value, L.P.
13-3688497
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [X]
(b)
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3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
WC
--------------------------------------------------------------------------------
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
- 0 -
NUMBER OF
SHARES --------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 779,225 (1)
EACH
REPORTING --------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH - 0 -
--------------------------------------------------------
10 SHARED DISPOSITIVE POWER
779,225 (1)
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,235,500 (2)
--------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(See Instructions)
[ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
PN
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(1) Includes 20,625 shares issuable upon exercise of warrants to purchase shares
of Common Stock.
(2) Includes 62,500 shares issuable upon exercise of warrants to purchase shares
of Common Stock held by the Wynnefield Group.
2
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CUSIP NO. 87815U204
---------------------------- -------------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (entities only)
Wynnefield Partners Small Cap Value, L.P. I
13-3953291
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [X]
(b)
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3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
WC
--------------------------------------------------------------------------------
5 CHECK 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
- 0 -
NUMBER OF
SHARES --------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 896,650 (1)
EACH
REPORTING --------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH - 0 -
--------------------------------------------------------
10 SHARED DISPOSITIVE POWER
896,650 (1)
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,235,500 (2)
--------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(See Instructions)
[ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12%
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14 TYPE OF REPORTING PERSON (See Instructions)
PN
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(1) Includes 26,250 shares issuable upon exercise of warrants to purchase shares
of Common Stock.
(2) Includes 62,500 shares issuable upon exercise of warrants to purchase shares
of Common Stock held by the Wynnefield Group.
3
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CUSIP NO. 87815U204
---------------------------- -------------------------
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (entities only)
Wynnefield Small Cap Value Offshore Fund, Ltd.
(No IRS Identification No.)
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(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
- 0 -
NUMBER OF
SHARES --------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 559,625 (1)
EACH
REPORTING --------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH - 0 -
--------------------------------------------------------
10 SHARED DISPOSITIVE POWER
559,625 (1)
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,235,500 (2)
--------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(See Instructions)
[ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12%
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14 TYPE OF REPORTING PERSON (See Instructions)
CO
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(1) Includes 15,625 shares issuable upon exercise of warrants to purchase shares
of Common Stock.
(2) Includes 62,500 shares issuable upon exercise of warrants to purchase shares
of Common Stock held by the Wynnefield Group.
4
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CUSIP NO. 87815U204
---------------------------- -------------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (entities only)
Wynnefield Capital Management, LLC
13-4018186
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) X
(b) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
WC
--------------------------------------------------------------------------------
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
New York
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7 SOLE VOTING POWER
- 0 -
NUMBER OF
SHARES --------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 1,675,875 (1)
EACH
REPORTING --------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH - 0 -
--------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,675,875 (1)
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,235,500 (2)
--------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(See Instructions)
[ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
OO (Limited Liability Company)
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(1) Wynnefield Capital Management, LLC holds an indirect beneficial ownership
interest in these shares which are directly beneficially owned by Wynnefield
Partners Small Cap Value, L.P. and Wynnefield Partners Small Cap Value, L.P. I.
and includes: (i) 20,625 shares issuable upon exercise of warrants to purchase
shares of Common Stock held by Wynnefield Partners Small Cap Value, L.P. and
(ii) 26,250 shares issuable upon exercise of warrants to purchase shares of
Common Stock held by Wynnefield Partners Small Cap Value, L.P. I.
(2) Includes 62,500 shares issuable upon exercise of warrants to purchase shares
of Common Stock held by the Wynnefield Group.
5
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CUSIP NO. 87815U204
---------------------------- -------------------------
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (entities only)
Wynnefield Capital, Inc.
(No IRS Identification No.)
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(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
- 0 -
NUMBER OF
SHARES --------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 559,625 (1)
EACH
REPORTING --------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH - 0 -
--------------------------------------------------------
10 SHARED DISPOSITIVE POWER
559,625 (1)
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,235,500 (2)
--------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(See Instructions)
[ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
CO
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(1) Wynnefield Capital, Inc. holds an indirect beneficial ownership interest in
these shares which are directly beneficially owned by Wynnefield Small Cap Value
Offshore Fund, Ltd. and includes 15,625 shares issuable upon exercise of
warrants to purchase shares of Common Stock held by Wynnefield Small Cap Value
Offshore Fund, Ltd.
(2) Includes 62,500 shares issuable upon exercise of warrants to purchase shares
of Common Stock held by the Wynnefield Group.
6
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CUSIP NO. 87815U204
---------------------------- -------------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (entities only)
Nelson Obus
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a)
(b) [X]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
WC
--------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(E) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States of America
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
- 0 -
NUMBER OF
SHARES --------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 2,235,500 (1)
EACH
REPORTING --------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH - 0 -
--------------------------------------------------------
10 SHARED DISPOSITIVE POWER
2,235,500 (1)
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,235,500 (2)
--------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(See Instructions)
[ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
IN
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(1) Mr. Obus may be deemed to have an indirect beneficial ownership in such
shares through his positions as a managing member of Wynnefield Capital
Management, LLC and a principal executive officer of Wynnefield Capital, Inc.
Wynnefield Capital Management, LLC holds an indirect beneficial ownership
interest in 1,629,000 shares and 46,875 shares issuable upon exercise of
warrants which are directly beneficially owned by Wynnefield Partners Small Cap
Value, L.P. and Wynnefield Partners Small Cap Value, L.P. I. Wynnefield Capital,
Inc. holds an indirect beneficial ownership interest in 544,000 shares and
15,625 shares issuable upon exercise of warrants which are directly beneficially
owned by Wynnefield Small Cap Value Offshore Fund, Ltd.
(2) Includes: (i) 20,625 shares issuable upon exercise of warrants to purchase
shares of Common Stock held by Wynnefield Partners Small Cap Value, L.P.; (ii)
26,250 shares issuable upon exercise of warrants to purchase shares of Common
Stock held by Wynnefield Partners Small Cap Value, L.P. I; and (iii) 15,625
shares issuable upon exercise of warrants to purchase shares of Common Stock
held by Wynnefield Small Cap Value Offshore Fund, Ltd.
7
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CUSIP NO. 87815U204
---------------------------- -------------------------
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (entities only)
Joshua H. Landes
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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 (See Instructions)
WC
--------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(E) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States of America
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
- 0 -
NUMBER OF
SHARES --------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 2,235,500 (1)
EACH
REPORTING --------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH - 0 -
--------------------------------------------------------
10 SHARED DISPOSITIVE POWER
2,235,500 (1)
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,235,500 (2)
--------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(See Instructions)
[ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
IN
--------------------------------------------------------------------------------
(1) Mr. Landes may be deemed to have an indirect beneficial ownership in such
shares through his positions as a managing member of Wynnefield Capital
Management, LLC and a principal executive officer of Wynnefield Capital, Inc.
Wynnefield Capital Management, LLC holds an indirect beneficial ownership
interest in 1,629,000 shares and 46,875 shares issuable upon exercise of
warrants which are directly beneficially owned by Wynnefield Partners Small Cap
Value, L.P. and Wynnefield Partners Small Cap Value, L.P. I. Wynnefield Capital,
Inc. holds an indirect beneficial ownership interest in 544,000 shares and
15,625 shares issuable upon exercise of warrants which are directly beneficially
owned by Wynnefield Small Cap Value Offshore Fund, Ltd.
(2) Includes: (i) 20,625 shares issuable upon exercise of warrants to purchase
shares of Common Stock held by Wynnefield Partners Small Cap Value, L.P.; (ii)
26,250 shares issuable upon exercise of warrants to purchase shares of Common
Stock held by Wynnefield Partners Small Cap Value, L.P. I; and (iii) 15,625
shares issuable upon exercise of warrants to purchase shares of Common Stock
held by Wynnefield Small Cap Value Offshore Fund, Ltd.
8
Information contained in this Statement is as of the date hereof, unless
otherwise expressly provided herein.
ITEM 1. SECURITY AND ISSUER.
Title of Class of Securities:
Common Stock $.001 par value per share (the "Shares")
Name and Address of Issuer:
TeamStaff, Inc. (the "Company" or the "Issuer")
300 Atrium Drive
Somerset, NJ 08873
ITEM 2. IDENTITY AND BACKGROUND.
This statement is being filed by Wynnefield Partners Small Cap Value, L.P.
("Partnership"), Wynnefield Partners Small Cap Value, L.P. I ("Partnership-I"),
Wynnefield Small Cap Value Offshore Fund, Ltd. (the "Fund"), Nelson Obus ("Mr.
Obus"), Joshua H. Landes ("Mr. Landes"), Wynnefield Capital Management, LLC
("WCM"), Wynnefield Capital, Inc. ("WCI", and collectively with Partnership,
Partnership-I, the Fund, Mr. Obus, Mr. Landes, and WCM, the "Wynnefield
Group"). Each of the listed entities is separate and distinct with different
beneficial owners (whether designated as limited partners or stockholders). Mr.
Obus and Mr. Landes are individuals.
WCM, a New York limited liability company, is the general partner of Partnership
and Partnership-I, private investment companies organized as limited
partnerships under the laws of the State of Delaware. Mr. Obus and Mr. Landes
are the managing members of WCM and the principal executive officers of WCI, a
corporation organized under the laws of the Cayman Islands. WCI is the
investment manager of the Fund, a private investment company organized under the
laws of the Cayman Islands. Mr. Obus and Mr. Landes are citizens of the United
States of America.
The business address of Mr. Obus, Mr. Landes, and each of the entities in the
Wynnefield Group is 450 Seventh Avenue, Suite 509, New York, New York 10123.
During the last five years, neither Mr. Obus, Mr. Landes, nor any of the
entities comprising the Wynnefield Group has been (i) convicted in a criminal
proceeding (excluding traffic violations or similar misdemeanors), or (ii) a
party to a civil proceeding of a judicial or administrative body of competent
jurisdiction and as a result of such proceeding 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.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
The shares of Common Stock of the Issuer were paid for from the working capital
of each entity in the Wynnefield Group. Each entity in the Wynnefield Group
maintains a
9
separate investment fund, consisting of capital contributions from their
respective partners and investors and capital appreciation derived therefrom for
the principal purpose of buying and selling securities (including financial and
money market instruments) and interests in domestic and foreign securities,
including, without limitation, convertible securities, stock index futures
contracts, options, puts and calls on stock and warrants.
ITEM 4. PURPOSE OF TRANSACTION.
Each member of the Wynnefield Group originally acquired the shares of Common
Stock reported in Item 5 below for its own account, and for investment purposes,
with no intention of changing or influencing control of the Issuer or as a
participant in any transaction having that purpose or effect. However, the
Wynnefield Group has recommended, and from time-to-time, may continue to
recommend to the Issuer's management various strategies for increasing
shareholders' value. The Wynnefield Group and the Issuer's management have
continued their dialogue on this and related subjects.
On March 9, 2005, representatives of the Wynnefield Group held telephone
discussions with T. Stephen Johnson, the Chairman of the Board of the Issuer,
concerning the possible appointment by the Wynnefield Group of two members to
the Issuer's Board. Mr. Johnson indicated he would take the Wynnefield Group's
request under advisement and would discuss it with the other members of the
Issuer's Board. On March 11, 2005, a Wynnefield representative held further
telephone discussions with Mr. Johnson concerning such possible appointments at
which time Mr. Johnson indicated that he and certain other members of the
Issuer's Board, with whom he had discussed the matter, were favorably inclined
to the Wynnefield Group nominating two directors to the Issuer's Board and that
such Board members would support the nominees of the Wynnefield Group for
appointment as directors. On March 17, 2005, T. Kent Smith, the Issuer's
President and Chief Executive Officer, advised the Wynnefield Group that the
Issuer's Board had appointed Peter Black, a portfolio manager with WCI, to the
Issuer's Board subject to his acceptance. As discussed with the Issuer, the
Wynnefield Group reserves the right to nominate an additional member to the
Issuer's Board. On March 18, 2005, Mr. Black accepted his appointment to the
Issuer's Board.
The Wynnefield Group will also continue to evaluate on an ongoing basis the
Issuer's financial condition, business, operations and prospects, the market
price for the shares of Common Stock, conditions in the securities markets
generally, general economic conditions, conditions affecting the Issuer's
operations and other factors, specifically management's ability to maximize
shareholder value. In particular, the Wynnefield Group may purchase shares of
Common Stock, or may sell or otherwise dispose of all or a portion of the shares
of Common Stock, in public and private transactions and/or may enter into
negotiated derivative transactions to hedge the market risk of some or all
positions in, or to obtain greater exposure to, the shares of the Common Stock.
Any such transactions may be effected at any time or from time to time, subject
to any applicable limitations imposed on the sale of shares of the Common Stock
by the Securities Act of 1933, as amended, the Securities Exchange Act of 1934,
as amended, and applicable state securities or "blue sky" laws. In addition, the
Wynnefield Group may seek to influence the policies, procedures, goals and
strategic plans of the Issuer through direct communication with the Issuer's
management or otherwise.
10
The Wynnefield Group reserves the right to change its plans and intentions at
any time as it deems appropriate with respect to all matters referred to in this
Item 4.
Except as otherwise set forth above, no member of the Wynnefield Group has any
plans to effect any of the transactions required to be described in Item 4 of
Schedule 13D.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
(a) - (b) As of March 14, 2005, the Wynnefield Group beneficially owned in the
aggregate 2,235,500 shares of Common Stock (including: (i) 20,625 shares
issuable upon exercise of warrants to purchase shares of Common Stock held by
Partnership; (ii) 26,250 shares issuable upon exercise of warrants to purchase
shares of Common Stock held by Partnership I; and (iii) 15,625 shares issuable
upon exercise of warrants to purchase shares of Common Stock held by Fund),
constituting approximately 12% of the outstanding shares of Common Stock (the
percentage of shares owned being based upon 18,106,229 shares of Common Stock
outstanding as of February 7, 2005, as set forth in the Issuer's report on Form
10-Q for the quarter ended December 31, 2004 plus 62,500 shares issuable upon
exercise of warrants to purchase shares of Common Stock held by the Wynnefield
Group.). Each member of the Wynnefield Group may be deemed to beneficially own
the 2,235,500 shares of Common Stock referenced in the preceding sentence
because they together constitute a "group" as that term is used in Section
13(d)(3) of the Exchange Act and thereby may each be deemed to share voting and
dispositive power with respect to the Common Stock owned directly by any member.
Partnership owns 758,600 shares of Common Stock and 20,625 shares issuable upon
exercise of warrants to purchase shares of Common Stock directly. Partnership-I
owns 870,400 shares of Common Stock and 26,250 shares issuable upon exercise of
warrants to purchase shares of Common Stock directly. WCM has an indirect
beneficial ownership interest in shares of Common Stock owned by Partnership and
Partnership-I through its status as the sole general partner of Partnership and
Partnership-I. Messrs. Landes and Obus are co-managing members of WCM and may
also be deemed to have an indirect beneficial ownership interest in shares of
Common Stock owned by Partnership and Partnership-I.
The Fund owns 544,000 shares of Common Stock and 15,625 shares issuable upon
exercise of warrants to purchase shares of Common Stock directly. WCI has an
indirect beneficial ownership interest in the shares of Common Stock owned by
the Fund through its status as investment manager of the Fund. Messrs. Landes
and Obus are the principal executive officers of WCI and may also be deemed to
have an indirect beneficial ownership interest in shares of Common Stock owned
by the Fund.
The filing of this Statement and any future amendment by the Wynnefield Group,
and the inclusion of information herein and therein with respect to Messrs. Obus
and Landes, shall not be considered an admission that any of such persons, for
the purpose of Section 16(b) of the Exchange Act, are the beneficial owners of
any shares in which such persons do not have a pecuniary interest. Messrs. Obus
and Landes disclaim any beneficial ownership of the shares covered by this
Statement.
11
(c) To the best knowledge of the Wynnefield Group, any person in control
(ultimately or otherwise) of the Wynnefield Group, or any general partner,
executive officer or director thereof, as applicable, there have been no
transactions in Common Stock effected during the sixty days prior to the filing
of this Statement.
(d) No person, other than each member of the Wynnefield Group referred to as the
direct beneficial owner of the shares of Common Stock set forth in this response
to Item 5, has the right to receive or the power to direct the receipt of
dividends from, or the proceeds from the sale of, such shares of Common Stock.
(e) Not applicable.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO
SECURITIES OF THE ISSUER.
On November 10, 2004, each of Partnership, Partnership I, and Fund entered into
a Securities Purchase Agreement with the Issuer (the "Securities Purchase
Agreement"). The Securities Purchase Agreement provided that, among other
things, that each of Partnership, Partnership I, and Fund will not effect any
disposition of the shares of Common Stock and the associated warrants to
purchase shares of Common Stock purchased therein unless the Issuer has filed a
registration statement which has been declared effective by the Securities and
Exchange Commission registering such shares of Common Stock.
Except as set forth above under this Item 6, to the best knowledge of the
Wynnefield Group, any person in control (ultimately or otherwise) of the
Wynnefield Group, or any general partner, executive officer or director thereof,
as applicable, there are no contracts, arrangements, understandings or
relationships (legal or otherwise) between the Wynnefield Group, and any other
person, with respect to any securities of the Issuer, including, but not limited
to, transfer or voting of any of the securities, finder's fees, joint ventures,
loan or option agreements, puts or calls, guarantees of profits, divisions of
profits or loss, or the giving or withholding of proxies.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
Exhibit 1. Joint Filing Agreement, dated as of March 18, 2005 among the
Partnership, Partnership-I, Fund, Mr. Obus, Mr. Landes, WCM and
WCI.
12
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.
Date: March 18, 2005
WYNNEFIELD PARTNERS SMALL
CAP VALUE, L.P.
By: Wynnefield Capital Management, LLC,
General Partner
By: /s/ Nelson Obus
----------------------------
Nelson Obus, Co-Managing
Member
WYNNEFIELD PARTNERS SMALL
CAP VALUE, L.P. I
By: Wynnefield Capital Management, LLC,
General Partner
By: /s/ Nelson Obus
----------------------------
Nelson Obus, Co-Managing
Member
WYNNEFIELD SMALL CAP VALUE
OFFSHORE FUND, LTD.
By: Wynnefield Capital, Inc.
By: /s/ Nelson Obus
----------------------------
Nelson Obus, President
WYNNEFIELD CAPITAL
MANAGEMENT, LLC
By: /s/ Nelson Obus
----------------------------------
Nelson Obus, Co-Managing Member
WYNNEFIELD CAPITAL, INC.
By: /s/ Nelson Obus
----------------------------------
Nelson Obus, President
/s/ Joshua H. Landes
----------------------------------
Joshua H. Landes, Individually
/s/ Nelson Obus
----------------------------------
Nelson Obus, Individually
13
EXHIBIT INDEX
Exhibit 1. Joint Filing Agreement, dated as of March 18, 2005 among the
Partnership, Partnership-I, Fund, Mr. Obus, Mr. Landes, WCM and
WCI.
14