3 1 form3.htm FORM3.HTM Form 3 – Initial Statement of Beneficial Ownership of Securities – EDGAR Services Provided by St Ives Burrups
FORM 3
  
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549

INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES


Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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 1. Name and Address of Reporting Person *

Lenfest H.F.

(Last)        (First)        (Middle)
 2. Date of Event
     Requiring Statement
     (Month/Day/Year)
 
2/18/03
 4. Issuer Name Environmental Tectonics Corporation
     and Ticker or Trading Symbol ETC
 
 
c/o The Lenfest Group, LLC
1332 Enterprise Drive, Suite 200
 3. I.R.S. Identification
    Number of Reporting
    Person, if an entity
    (Voluntary)

 
 
 5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

 Director                           10% Owner
 Officer (give title below)  Other (specify below)



 6. If Amendment, Date of Original
    (Month/Day/Year)
 

(Street)

West Chester, PA 19380

 7. Individual or Joint/Group
     Filing (Check Applicable Line)

 Form filed by One Reporting Person
 Form filed by More than One 
     Reporting Person
(City)        (State)        (Zip)

Table I - Non-Derivative Securities Beneficially Owned
1. Title of Security
    (Instr. 4)

2. Amount of
    Securities
    Beneficially
    Owned
    (Instr. 4)
 3. Ownership
     Form:
     Direct
     (D) or
     Indirect (I)
     (Instr. 5)
4.  Nature of
     Indirect
     Beneficial
     Ownership
     (Instr. 5)
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.  
* If the form is filed by more than one reporting person, see Instruction 5(b)(v). (Over)
    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.  


Form 3
(continued)
Table II - Derivative Securities Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
    (Instr. 4)
2. Date Exercisable
    and Expiration Date
    (Month/Day/Year)
3. Title and Amount of Securities
    Underlying Derivative Security
    (Instr. 4)
4. Conver-
    sion or
    Exercise
    Price of
    Derivative
    Security
5. Ownership Form
     of Derivative
     Security:
     Direct (D) or
     Indirect (I)
      (Instr. 5)
6. Nature of Indirect
     Beneficial Ownership
     (Instr. 5)
Date
Exercisable
Expiration
Date
   Title    Amount or Number of Shares
10.0% Senior Subordinated Convertible Note  Immed.  2/18/09  Common Stock  1,652,892 (1)(2)  $6.05   
Stock Purchase Warrant  Immed.  2/18/09  Common Stock  803,048(1)(3)  (4)   
Explanation of Responses:
(1) Effective February 18, 2003, pursuant to a Convertible Note and Warrant Purchase Agreement (the “Agreement”), the reporting person acquired the 10.0% Senior Subordinated Convertible Note (the “Note”) and the Stock Purchase Warrant (the “Warrant”). The aggregate number of shares that the reporting person may acquire pursuant to the exercise of the Warrant and conversion of the Note may not exceed 1,325,731 shares prior to the approval by the shareholders of the Issuer of the transactions contemplated by the Agreement. In addition, upon each conversion of the Note or upon the grant by the Issuer of any of the 568,368 available but unissued stock options under the Issuer's stock option plan, the Issuer shall issue additional warrants entitling the reporting person to purchase shares of common stock equal to ten percent (10%) of the shares of common stock either issued upon such conversion of the Note or issuable upon the exercise of such stock options. The exercise price and other terms and conditions of these additional shares shall be the same as may then apply to the Warrant. (2) The Note bears interest on the outstanding principal amount at a rate of ten percent (10%) per annum. The Issuer is permitted to defer its quarterly payments of interest, which, upon deferral, will be added to the principal of the Note and will accrue interest thereon. At any time, or from time to time, the reporting person may convert all or a portion of the then outstanding principal balance of, and accrued and unpaid interest on, the Note into shares of common stock at a conversion price of $6.05 per share. Payments of principal and interest on the Note are subordinated to repayment of certain senior debt and are not permitted to be made if there is a default under such senior debt. (3) The number of shares issuable under the Warrant is subject to adjustment in accordance WIth anti-dilution provisions in the Warrant. (4) The Warrant may be exercised at an exercise price equal to the lesser of (i) $4.00 per share or (ii) 66 2/3 percent of the Market Price (as defined in the Warrant); provided, however, that if the Issuer's shareholders do not approve the transactions contemplated by the Agreement, the exercise price shall be the lower of (i)$2.00 per share or (ii) 66 2/3 percent of the Market Price.
       
  H.F. Lenfest   2/28/03
 
 
  ** Signature of Reporting Person   Date
   
      ** Intentional misstatements or omissions of facts constitute Federal Criminal Violations.
See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
 
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient,
see Instruction 6 for procedure.
 
Potential persons who are to respond to the collection of information contained in this form are not
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