0001144204-17-023042.txt : 20170428 0001144204-17-023042.hdr.sgml : 20170428 20170428115837 ACCESSION NUMBER: 0001144204-17-023042 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 3 FILED AS OF DATE: 20170428 DATE AS OF CHANGE: 20170428 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: SITO MOBILE, LTD. CENTRAL INDEX KEY: 0001157817 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-BUSINESS SERVICES, NEC [7389] IRS NUMBER: 134122844 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-85736 FILM NUMBER: 17793060 BUSINESS ADDRESS: STREET 1: 100 TOWN SQUARE PLACE STREET 2: SUITE 204 CITY: JERSEY CITY STATE: NJ ZIP: 07310 BUSINESS PHONE: 201-275-0555 MAIL ADDRESS: STREET 1: 100 TOWN SQUARE PLACE STREET 2: SUITE 204 CITY: JERSEY CITY STATE: NJ ZIP: 07310 FORMER COMPANY: FORMER CONFORMED NAME: SINGLE TOUCH SYSTEMS INC DATE OF NAME CHANGE: 20080806 FORMER COMPANY: FORMER CONFORMED NAME: HOSTING SITE NETWORK INC DATE OF NAME CHANGE: 20010821 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: SINGER KAREN CENTRAL INDEX KEY: 0001265181 FILING VALUES: FORM TYPE: SC 13D/A MAIL ADDRESS: STREET 1: 212 VACCARO DRIVE CITY: CRESSKILL STATE: NJ ZIP: 07626 SC 13D/A 1 v465397_sc13da.htm SC 13D/A

 

 

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

SCHEDULE 13D/A

(Rule 13d-101)

 

INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULE 13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO RULE 13d-2(a)

 

(Amendment No. 2)1

 

 

SITO Mobile, Ltd.
(Name of Issuer)
Common Stock, par value $0.001 per share
(Title of Class of Securities)
  82988R203  
  (CUSIP Number)  

 

Karen Singer, 212 Vaccaro Drive, Cresskill, NJ 07626 (Tel.) (201) 750-0415

(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)
  April 28, 2017  
  (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 Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following box [X].

 

Note. Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 13d-7 for other parties to whom copies are to be sent.

 

(Continued on following pages)

 

Page 1 of 7 pages

 

 

______________________

1 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 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).

 

 

 

 

 

CUSIP No. 82988R203

 

13D/A2

 

 

Page 2 of 7

 

 

 

1

 

NAME OF REPORTING PERSON

 

Karen Singer

 

2

 

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*

 

(a)

 

[  ]  

 

 

 

 

(b)

 

[  ]

 

3

 

SEC USE ONLY

 

 

 

4

_______________

SOURCE OF FUNDS*

OO

 

5

 

CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2I

 

[ ]

 

 

 

 

6

 

CITIZENSHIP OR PLACE OF ORGANIZATION

United States

 

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

 

7

 

SOLE VOTING POWER

2,100,718

 

8

 

SHARED VOTING POWER

0

 

9

 

SOLE DISPOSITIVE POWER

2,100,718

 

10

 

SHARED DISPOSITIVE POWER

0

 

11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

2,100,718

 

12

 

CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*

[  ]

 

 

 

 

13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

10.2%

 

14

 

TYPE OF REPORTING PERSON*

IN
             

 

 

 

 

 

CUSIP No. 82988R203

 

13D/A2

 

 

Page 3 of 7

 

 

 

1

 

NAME OF REPORTING PERSON

 

TAR Holdings LLC

 

2

 

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*

 

(a)

 

[  ]

 

 

 

 

 

 

 

(b)

 

[  ]

 

3

 

SEC USE ONLY

 

 

 

4

_______________

SOURCE OF FUNDS*

OO

 

5

 

CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2I

 

[ ]

 

 

 

 

6

 

CITIZENSHIP OR PLACE OF ORGANIZATION

Delaware

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

 

7

 

SOLE VOTING POWER

2,100,7182

 

8

 

SHARED VOTING POWER

0

 

9

 

SOLE DISPOSITIVE POWER

2,100,7183

 

10

 

SHARED DISPOSITIVE POWER

0

 

11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

2,100,718

 

12

 

CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*

[  ]

 

 

 

 

13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

10.2%

 

14

 

TYPE OF REPORTING PERSON*

OO
             

______________________

2 Ms. Singer has sole voting power with respect to all the shares held by TAR Holdings LLC.

3 Ms. Singer has sole dispositive power with respect to all the shares held by TAR Holdings LLC.

 

 

 

SCHEDULE 13D/A2

 

This constitutes Amendment No. 2 (the “Amendment No. 2”) to the statement on Schedule 13D filed on behalf of Karen Singer, dated and filed April 3, 2017 (as amended, the “Statement”), relating to the common stock, $0.001 par value per share (the “Common Stock”), of SITO Mobile, Ltd. (the “Company” or the “Issuer”). Unless specifically amended or modified hereby, the disclosure set forth in the Statement shall remain unchanged.

 

Item 4. Purpose of the Transaction

 

Item 4 of the Statement is hereby amended to add the following:

 

The purpose of this Amendment No. 2 is to report that, on April 28, 2017, a letter (attached as Exhibit 99.2 to the Statement, the “April 28 Letter”) was sent on behalf of TAR Holdings LLC (“TAR Holdings”) to the Board of Directors (the “Board”) of the Issuer, in response to (i) a letter from the Issuer, dated April 20, 2017 (the “April 20 Letter”), addressed to TAR Holdings LLC and asking TAR Holdings to submit an affidavit to the Issuer attesting to various matters in connection with TAR Holdings’ nomination of nominees to the Issuer’s board of directors (the “Board”) at the 2017 annual meeting of the Issuer’s stockholders (the “Annual Meeting”), and (ii) the Issuer’s press release, dated April 25, 2017 (the “April 25 Press Release”), in which the Issuer made various inaccurate, unfounded and irrelevant statements with respect to TAR Holdings and Karen Singer (sole member of TAR Holdings), among others.

 

Among other things, the April 28 Letter stated that TAR Holdings believes that: (i) the April 20 Letter and the April 25 Press Release represent further examples of the repeated and improper attempts by the current members of the Issuer’s board of directors and management (“Management”) - - who collectively own a de minimis amount of the Issuer’s common stock - - to entrench themselves to the detriment of the Issuer’s stockholders. Such examples include, without limitation, the purported adoption by the Issuer of (a) Amended and Restated Bylaws on March 23, 2017 (the “Purported Amended Bylaws”) and (b) that certain Section 382 Tax Benefits Preservation Plan on April 3, 2017 (the “Purported Poison Pill”), each promptly following filings by Issuer stockholders indicating that the Issuer had been mismanaged and that significant changes needed to be made at both the Board and Management level to rectify such acts and omissions and to reorient the Issuer’s focus toward creating and increasing its value for its owners, the stockholders; (ii) such inappropriate and unenforceable actions evidence the Board’s and Management’s disregard for the best interests of the Issuer and its stockholders; (iii) such actions are also a waste of the Issuer’s resources and seem to constitute a breach of the Board’s and Management’s fiduciary duties to the Issuer’s stockholders; and (iv) the Issuer’s Board and Management should focus on managing the Issuer rather than wasting valuable time and Issuer resources disparaging TAR Holdings and Karen Singer and making improper and groundless allegations of so-called “group” activity that are not relevant to the Issuer and its continued underperformance.

 

In addition, in the April 28 Letter, TAR Holdings reiterated its prior requests that the Board (i) promptly provide a current and accurate analysis of the potential for an ownership change under Section 382 of the Internal Revenue Code and (ii) waive the application of the terms of the Purported Poison Pill and the application of Section 203 of the Delaware General Corporations Law if TAR Holdings (or Karen Singer) acquires shares of common stock of the Issuer such that its aggregate beneficial ownership of Issuer common stock does not exceed 19.9% of the outstanding shares of Issuer common stock.

 

 

 

 

TAR Holdings also confirmed that there are no “extensive and undisclosed ties” between TAR Holdings and Karen Singer, on the one hand, and Stephen Baksa and Thomas Candelaria, on the other hand, and that no relationship (whether as a “group” under section 13(d) of the Securities and Exchange Act of 1934, or otherwise) exists between TAR Holdings or Karen Singer and Messrs’ Baksa and Candelaria, as the Issuer improperly alleged in the April 25 Press Release.

 

Except in connection with the matters described in this Item 4 and as contemplated herein, Ms. Singer does not currently have any specific plans or proposals that relate to or would result in any of the actions or events specified in clauses (a) through (j) of Item 4 of Schedule 13D. Ms. Singer reserves the right to change plans and take any and all actions that Ms. Singer may deem appropriate to maximize the value of her investment, including, among other things, purchasing or otherwise acquiring additional securities of the Issuer, selling or otherwise disposing of any securities of the Issuer beneficially owned by her, in each case in the open market or in privately negotiated transactions or formulating other plans or proposals regarding the Issuer or its securities to the extent deemed advisable by Ms. Singer in light of her general investment policies, market conditions, subsequent developments affecting the Issuer and the general business and future prospects of the Issuer. Ms. Singer may take any other action with respect to the Issuer or any of the Issuer’s debt or equity securities in any manner permitted by applicable law.

 

Item 5. Interest in Securities of the Issuer.

  

Item 5 of the Statement is hereby amended and restated as follows:

 

The aggregate percentage of shares of Common Stock reported owned is based upon 20,681,047 shares of Common Stock outstanding as reported in the Issuer’s Form 10-K filed on April 17, 2017.

 

A. TAR Holdings LLC

 

(a) As of the date hereof, TAR Holdings beneficially owns 2,100,718 shares of Common Stock, which shares are held directly by TAR Holdings.

 

Percentage: Approximately 10.16%

 

(b)           1. Sole power to vote or direct vote: 2,100,718

 

2. Shared power to vote or direct vote: 0

 

3. Sole power to dispose or direct the disposition: 2,100,718

 

4. Shared power to dispose or direct the disposition: 0

 

(c) Not applicable.

 

 

 

 

B. Ms. Singer

 

(a) As of the date hereof, Ms. Singer, as the sole Member of TAR Holdings, indirectly beneficially owns 2,100,718 shares of Common Stock held by TAR Holdings.

 

Percentage: Approximately 10.16%

 

(b)           1. Sole power to vote or direct vote: 2,100,718

 

2. Shared power to vote or direct vote: 0

 

3. Sole power to dispose or direct the disposition: 2,100,718

 

4. Shared power to dispose or direct the disposition: 0

 

(c)        Not applicable.

 

As of the date hereof, the Reporting Person beneficially owns an aggregate of 2,100,718 shares of Common Stock, constituting approximately 10.16% of the Shares outstanding.

 

(d)       No person other than the Reporting Person is known to have the right to receive, or the power to direct the receipt of dividends from, or proceeds from the sale of, the shares of Common Stock.

 

(e)       Not applicable.

 

Item 7. Material to be Filed as Exhibits.

 

Item 7 of the Statement is hereby amended to add the following exhibits:

 

99.1Form of Indemnification Letter Agreement (Filed as Exhibit 99.1 to Amendment No. 1 to the Statement, filed by the Reporting Person with the Securities and Exchange Commission on April 10, 2017).

 

99.2Letter, dated April 28, 2017, to the Issuer.

 

 

 

 

After reasonable inquiry and to the best of his knowledge and belief, each of the undersigned certifies that the information set forth in this statement is true, complete and correct.

 

Dated: April 28, 2017

 

TAR Holdings LLC

 

 

 

By: /s/ Karen Singer
Name: Karen Singer
Title: Member

 

 

 

 

EX-99.2 2 v465397_ex99-2.htm EXHIBIT 99.2

 

450 Lexington Avenue

New York, New York 10017

+1.212.850.2800 Phone

+1.212.850.2929 Fax

andrewskurthkenyon.com

 

Paul N. Silverstein

+1.212.850.2819 Phone

paulsilverstein@andrewskurth.com

 

 

SEE LEGEND BELOW

 

April 28, 2017

 

VIA EMAIL, FEDEX AND COURIER

 

Morgan, Lewis & Bockius LLP

1111 Pennsylvania Ave. NW

Washington, DC 20004-2541

Attn: Keith Gottfried, Esq.

 

Dear Mr. Gottfried:

 

We have the letter, dated April 20, 2017 (the “April 20 Letter”), from your client, SITO Mobile, Ltd. (the “Company”), addressed to our client, TAR Holdings LLC (“TAR Holdings”). As your client knows, TAR Holdings owns approximately 10.2% of the Company’s common stock. The Company has asked TAR Holdings to submit an affidavit to the Company attesting to various matters in connection with TAR Holdings’ nomination of nominees to the Company’s board of directors (the “Board”) at the 2017 annual meeting of the Company’s stockholders (the “Annual Meeting”). We also have the Company’s press release, dated April 25, 2017 (the “April 25 Press Release”), in which the Company makes various inaccurate, unfounded and irrelevant statements with respect to TAR Holdings and Karen Singer (sole member of TAR Holdings), among others.

 

TAR Holdings believes that the April 20 Letter and the April 25 Press Release represent further examples of the repeated and improper attempts by the current members of the Company’s board of directors (the “Board”) and management (“Management”) - - who collectively own a de minimis amount of the Company’s common stock - - to entrench themselves to the detriment of the Company’s stockholders. Such examples include, without limitation, the purported adoption by the Company of (i) Amended and Restated Bylaws on March 23, 2017 (the “Purported Amended Bylaws”) and (ii) that certain Section 382 Tax Benefits Preservation Plan on April 3, 2017 (the “Purported Poison Pill”), each promptly following filings by Company stockholders indicating their belief that the Company had been mismanaged and that significant changes needed to be made at both the Board and Management level to rectify such acts and omissions and to reorient the Company’s focus toward creating and increasing its value for its owners, the stockholders. TAR Holdings believes that such inappropriate and unenforceable actions evidence the Board’s and Management’s disregard for the best interests of the Company and its stockholders. Such actions are also a waste of the Company’s resources and seem to constitute a breach of the Board’s and Management’s fiduciary duties to the Company’s stockholders. TAR Holdings believes that the Company’s Board and Management should focus on managing the Company rather than wasting valuable time and Company resources disparaging TAR Holdings and Karen Singer and making improper and groundless allegations of so-called “group” activity that are not relevant to the Company and its continued underperformance.

 

 

 

 

April 28,. 2017

Page 2

 

 

 

TAR Holdings continues to believe, as set forth in the Schedule 13D Amendment that was filed on April 10, 2017, that the foregoing actions, along with (i) the significant underperformance of the Company, (ii) the turmoil at the Board and Management level in recent months, and (iii) the lack of meaningful ownership of Company securities by members of the Board and Management, among other things, warrant significant changes to the composition of the Board. In addition, the Company has failed to respond to TAR Holdings’ requests for (a) a current and accurate analysis of the potential for an ownership change under Section 382 of the Internal Revenue Code and (b) a waiver of the terms of the Purported Poison Pill1 to permit TAR Holdings to acquire additional common stock of the Company.

 

On behalf of TAR Holdings, we hereby reiterate TAR Holdings’ prior requests that the Board (i) promptly provide a current and accurate analysis of the potential for an ownership change under Section 382 of the Internal Revenue Code and (ii) waive the application of the terms of the Purported Poison Pill and the application of Section 203 of the Delaware General Corporations Law if TAR Holdings (or Karen Singer) acquires shares of common stock of the Company such that its aggregate beneficial ownership of Company common stock does not exceed 19.9% of the outstanding shares of Company common stock.

 

With respect to the Company’s request for an affidavit from TAR Holdings, neither the Company’s Bylaws, dated November 1, 2001 and amended on May 5, 2016 (the “Original Bylaws”), nor the Purported Amended Bylaws require TAR Holdings to submit to the Company the affidavit requested in your April 20 Letter. Consequently, TAR Holdings will not submit the requested affidavit.2

 

With respect to the April 25 Press Release, in which the Company states that there are “extensive and undisclosed ties” between TAR Holdings and Karen Singer, on the one hand, and Stephen Baksa and Thomas Candelaria, on the other hand, there are no such “extensive and undisclosed ties.” There is no relationship (whether as a “group” under section 13(d) of the Securities and Exchange Act of 1934, or otherwise) between TAR Holdings or Karen Singer and Messrs’ Baksa and Candelaria. TAR Holdings also cannot opine on the reasons that Messrs. Baksa and Candelaria nominated their proposed nominees to the Board. As you are aware, TAR Holdings nominated its own slate of nominees to the Board.

 

 

 

_____________________

 

1 TAR Holdings believes that the adoption of the Purported Poison Pill was neither permissible nor enforceable. Nothing in this letter shall be deemed to constitute a waiver of TAR Holdings’ rights to challenge the purported adoption of the Purported Poison Pill or an acknowledgment that the adoption of the Purported Poison Pill was effective.

 

2 TAR Holdings believes that the adoption of the Purported Amended Bylaws was neither permissible nor enforceable. Notwithstanding the clear defects with, and unenforceability of, the Purported Amended Bylaws, TAR Holdings nonetheless has complied with the matters described therein, as well as those of the Original Bylaws, and the information contained in TAR Holdings’ notice, dated April 7, 2017, was true and correct and not false or misleading.

 

 

 

 

April 28,. 2017

Page 3

 

 

 

Notwithstanding the Company’s apparent disregard for the interests of its stockholders, TAR Holdings (a) remains open to engaging with the Board and Management to attempt to reach a mutually agreeable resolution that would avoid the need for an election contest at the Annual Meeting, and (b) reserves all rights with respect to any of its claims, or the Company’s claims, against the Board, Management, and the Company’s advisors.

 

If you have any questions or would like to discuss the foregoing, please feel free to contact us.

 


Sincerely,

 

/s/ Paul N. Silverstein

 

Paul N. Silverstein
 

 

cc:Karen Singer, TAR Holdings LLC
 Betsy Bernard, SITO Mobile, Ltd.
 Marcelle Balcombe, Sichenzia Ross Ference Kesner LLP

 

TAR Holdings LLC, Karen Singer and the other participants to be named therein (the “Participants”), intend to file a preliminary proxy statement (the “Proxy Statement”) with the Securities and Exchange Commission (the “SEC”) in connection with the solicitation of proxies for the 2017 Annual Meeting of Stockholders or any special meeting held in lieu thereof to elect directors (the “Annual Meeting”) of SITO Mobile, Ltd. (the “Company”). As of the date hereof, TAR Holdings LLC directly owns 2,100,718 shares of the Company’s common stock, and Ms. Singer indirectly owns 2,100,718 shares of the Company’s common stock as the member of TAR Holdings LLC. Additional information regarding the interests of the Participants will be included in the Proxy Statement and other relevant documents to be filed with the SEC in connection with the Annual Meeting.

 

STOCKHOLDERS ARE URGED TO READ THE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT DOCUMENTS THAT THE COMPANY WILL FILE WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Stockholders may obtain, free of charge, copies of the definitive Proxy Statement and any other documents filed by the Participants with the SEC in connection with the Annual Meeting at the SEC’s web site (http://www.sec.gov). In addition, the Participants will provide copies of the proxy statement without charge, when available, upon request. Requests for copies should be directed to the Participants’ proxy solicitor.

 

 

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