UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(Amendment No. 1)
Latin American Casinos, Inc.
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(Name of Issuer)
Common Stock, $.00067 par value
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(Title of Class of Securities)
5127W103
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(CUSIP Number)
Mr. David Matteson
Augustine Capital Management, LLC
141 W. Jackson
Suite 2182
Chicago, IL 60604
(312) 427-5461
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(Name, Address and Telephone Number of Person Authorized to Receive
Notices and Communications)
November 22, 2000
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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. [ ]
SCHEDULE 13D
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CUSIP NO. 5127W103
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1 NAME OF REPORTING PERSONS/I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
(ENTITIES ONLY)
Augustine Fund, L.P.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [X]
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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) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Illinois
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7 SOLE VOTING POWER
NUMBER OF 0 shares
SHARES -----------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 0 shares
EACH -----------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON 0 shares
WITH -----------------------------------------------
10 SHARED DISPOSITIVE POWER
0 shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,121,234 shares
--------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[X]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
42.9%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
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2
SCHEDULE 13D
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CUSIP NO. 5127W103
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1 NAME OF REPORTING PERSONS/I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
(ENTITIES ONLY)
Augustine Capital Management, LLC
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [X]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
AF
--------------------------------------------------------------------------------
5 CHECK BOX 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
NUMBER OF 0 shares
SHARES -----------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 0 shares
EACH -----------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON 0 shares
WITH -----------------------------------------------
10 SHARED DISPOSITIVE POWER
0 shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,121,234 shares
--------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[X]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
42.9%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
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3
SCHEDULE 13D
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CUSIP NO. 5127W103
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1 NAME OF REPORTING PERSONS/I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
(ENTITIES ONLY)
John T. Porter
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
AF
--------------------------------------------------------------------------------
5 CHECK BOX 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
United States
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7 SOLE VOTING POWER
NUMBER OF 0 shares
SHARES -----------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 2,761,949 shares
EACH -----------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON 0 shares
WITH -----------------------------------------------
10 SHARED DISPOSITIVE POWER
2,761,949 shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,121,234 shares
--------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[X]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
42.9%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
--------------------------------------------------------------------------------
4
SCHEDULE 13D
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CUSIP NO. 5127W103
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1 NAME OF REPORTING PERSONS/I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
(ENTITIES ONLY)
Brian D. Porter
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [X]
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3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
AF
--------------------------------------------------------------------------------
5 CHECK BOX 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
United States
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 285,714 shares
SHARES -----------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 2,761,949 shares
EACH -----------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON 285,714 shares
WITH -----------------------------------------------
10 SHARED DISPOSITIVE POWER
2,761,949 shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,121,234 shares
--------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[X]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
42.9%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
--------------------------------------------------------------------------------
5
SCHEDULE 13D
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CUSIP NO. 5127W103
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1 NAME OF REPORTING PERSONS/I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
(ENTITIES ONLY)
Thomas Duszynski
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
AF
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5 CHECK BOX 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
United States
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 0 shares
SHARES -----------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 2,761,949 shares
EACH -----------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON 0 shares
WITH -----------------------------------------------
10 SHARED DISPOSITIVE POWER
2,761,949 shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,121,234 shares
--------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[X]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
42.9%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
--------------------------------------------------------------------------------
6
SCHEDULE 13D
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CUSIP NO. 5127W103
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1 NAME OF REPORTING PERSONS/I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
(ENTITIES ONLY)
David R. Asplund
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
AF
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5 CHECK BOX 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
United States
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 0 shares
SHARES -----------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 2,761,949 shares
EACH -----------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON 0 shares
WITH -----------------------------------------------
10 SHARED DISPOSITIVE POWER
2,761,949 shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,121,234 shares
--------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[X]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
42.9%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
--------------------------------------------------------------------------------
7
SCHEDULE 13D
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CUSIP NO. 5127W103
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1 NAME OF REPORTING PERSONS/I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
(ENTITIES ONLY)
Devenshire Management Corporation
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
WC
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5 CHECK BOX 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
Nevada
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 0 shares
SHARES -----------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 0 shares
EACH -----------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON 0 shares
WITH -----------------------------------------------
10 SHARED DISPOSITIVE POWER
0 shares
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,475,117 shares
--------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[X]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
28.9%
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14 TYPE OF REPORTING PERSON
CO
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8
SCHEDULE 13D
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CUSIP NO. 5127W103
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1 NAME OF REPORTING PERSONS/I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
(ENTITIES ONLY)
Todd Sanders
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
AF
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5 CHECK BOX 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
United States
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 1,475,117 shares
SHARES -----------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 0 shares
EACH -----------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON 1,475,117 shares
WITH -----------------------------------------------
10 SHARED DISPOSITIVE POWER
0 shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,475,117 shares
--------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[X]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
28.9%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
--------------------------------------------------------------------------------
9
SCHEDULE 13D
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CUSIP NO. 5127W103
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1 NAME OF REPORTING PERSONS/I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
(ENTITIES ONLY)
William C. Bossung
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
PF
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5 CHECK BOX 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
United States
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 1,589,403 shares
SHARES -----------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 0 shares
EACH -----------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON 1, 589, 403 shares
WITH -----------------------------------------------
10 SHARED DISPOSITIVE POWER
0 shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,589,403 shares
--------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[X]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
30.4%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
--------------------------------------------------------------------------------
10
SCHEDULE 13D
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CUSIP NO. 5127W103
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1 NAME OF REPORTING PERSONS/I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
(ENTITIES ONLY)
Alliance Financial Network, Inc.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
WC
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Nevada
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 0 shares
SHARES -----------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 0 shares
EACH -----------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON 0 shares
WITH -----------------------------------------------
10 SHARED DISPOSITIVE POWER
0 shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,589,403 shares
--------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[X]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
30.4%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
CO
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11
SCHEDULE 13D
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CUSIP NO. 5127W103
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1 NAME OF REPORTING PERSONS/I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
(ENTITIES ONLY)
David M. Matteson
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [X]
--------------------------------------------------------------------------------
3 SEC USE ONLY
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4 SOURCE OF FUNDS
AF
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 73,571 shares
SHARES -----------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 2,761,949 shares
EACH -----------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON 73,571 shares
WITH -----------------------------------------------
10 SHARED DISPOSITIVE POWER
2,761,949 shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,121,234 shares
--------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[X]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
42.9%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
--------------------------------------------------------------------------------
12
This is Amendment No. 1 to the Schedule 13D (the "Original 13D") filed
jointly by Augustine Capital Management, LLC ("Augustine Capital"), Augustine
Fund, LP ("Augustine Fund"), John T. Porter, Brian D. Porter, Thomas Duszynski,
David R. Asplund and (as of this Amendment No. 1) David M. Matteson, with
respect to the shares of Common Stock beneficially owned by the foregoing
entities (collectively, the "Augustine Entities"); Devenshire Management
Corporation ("Devenshire Management") and Todd Sanders (collectively, the
"Devenshire Entities"), with respect to the shares of Common Stock beneficially
owned by the Devenshire Entities; and William C. Bossung (and, as of this
Amendment No. 1, Alliance Financial Network Inc. ("Alliance") (collectively, the
"Alliance Entities")) with respect to the shares of Common Stock beneficially
owned by the Alliance Entities. The following items in the Original 13D are
amended to read in their entirety as follows:
ITEM 1. SECURITY AND ISSUER
The class of equity securities to which this Schedule 13D relates is
the common stock, par value $.00067 per share ("Common Stock"), of Latin
American Casinos, Inc., a Delaware corporation (the "Issuer"). The address of
the principal executive offices of the Issuer is 2000 NE 164th Street, North
Miami Beach, Florida 33162. The joint filing agreement of the persons filing
this Schedule 13D is attached as Exhibit 1.
ITEM 2. IDENTITY AND BACKGROUND
(a)-(c) This statement is filed by the Augustine Entities with respect
to the shares of Common Stock beneficially owned by the Augustine Entities, all
of which Common Stock is held in the name of Augustine Fund. Augustine Capital
is the general partner of Augustine Fund. The controlling members, directors and
officers of Augustine Capital are John T. Porter, Brian D. Porter, Thomas
Duszynski, David R. Asplund and David M. Matteson. The business address of each
of the Augustine Entities is 141 W. Jackson, Suite 2182, Chicago, IL 60604. The
principal employment of John T. Porter, Brian D. Porter and Thomas Duszynski is
investing in securities, conducted through Augustine Capital and Augustine Fund.
The principal employment of David R. Asplund is trading securities. The
principal employment of David M. Matteson is as an officer of certain of the
Augustine Entities. Augustine Capital is a Delaware limited liability company
and Augustine Fund is an Illinois limited partnership.
This statement is filed by the Devenshire Entities with respect to the
shares of Common Stock beneficially owned by the Devenshire Entities, all of
which Common Stock is held in the name of Devenshire Management. The business
address of each of the Devenshire Entities is 19800 MacArthur Boulevard, Suite
580, Irvine, California 92612. Mr. Sanders is self-employed as a consultant.
This statement is filed by the Alliance Entities with respect to the
shares of Common Stock beneficially owned by the Alliance Entities. The business
address of each of the Alliance Entities is 9800 Camden Hills Avenue, Las Vegas,
Nevada 89145. Mr. Bossung is self-employed as a consultant.
13
(d) During the past five years, no Reporting Person has been convicted
in a criminal proceeding (excluding traffic violations or similar misdemeanors).
(e) During the past five years, no Reporting Person (a) has been 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.
(f) All of the individuals who are Reporting Persons are citizens of
the United States.
Collectively the foregoing entities are the "Reporting Persons."
As a result of the acquisition of the securities set forth on this Schedule 13D,
the Reporting Persons may be deemed to have formed a "group" with each other.
Each of the Reporting Persons expressly declares that the filing of this
Schedule 13D shall not be construed as an admission by any of them that it has
formed any such group.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
The amount of funds expended to date by Augustine Fund to acquire the
804, 806 shares of Common Stock it currently holds in its name and the Issuer's
6% Convertible Debentures it owns is $1,736,056. Such funds were provided from
Augustine Fund's available capital. The amount of funds expended to date by
Brian D. Porter to acquire the Issuer's 6% Convertible Debentures he owns is
$500,000. Such funds were provided from Mr. Porter's available capital. The
amount of funds expended to date by David M. Matteson to acquire the Issuer's 6%
Convertible Debentures he owns is $50,000. Such funds were provided from Mr.
Matteson's available capital.
The amount of funds expended to date by Devenshire Management to
acquire the 514,403 shares of Common Stock, the 125,000 publicly traded warrants
of the Issuer, the $150,000 of the Issuer's 6% Convertible Debentures and the
additional warrants to purchase 750,000 shares of Common Stock it currently
holds in its name (except for 20,000 of these warrants which are in the name of
The Zachary Todd Sanders Trust, Zachary Todd Sanders is the son of Todd Sanders)
is $676,388. Such funds were provided from Devenshire Management's available
capital.
The amount of funds expended to date by the Alliance Entities to
acquire the 414,403 shares of Common Stock, the 125,000 publicly traded warrants
of the Issuer and the $350,000 of the Issuer's 6% Convertible Debentures Mr.
Bossung currently holds in his name, and the 100,000 shares of Common Stock and
the warrants to purchase 750,000 shares of Common Stock Alliance holds in its
name, is $876,388. Such funds were provided from Mr. Bossung's and Alliance's
available capital.
14
ITEM 4. PURPOSE OF TRANSACTION
The Reporting Persons acquired the shares of Common Stock beneficially
owned by the Reporting Persons with the intent to exercise control of the
Issuer. Mr. Sanders has recently been appointed to the Issuer's Board of
Directors and elected chief executive officer of the Issuer and Mr. Bossung has
recently been appointed to the Issuer's Board of Directors and elected chief
operating officer of the Issuer. Although Mr. Sanders, Mr. Bossung and the
Augustine Entities have no formal arrangements with respect to control of the
Issuer, at the present time Mr. Sanders and Mr. Bossung, as well as the
Augustine Entities in their capacity as stockholder, contemplate working
together to implement policies that they believe are in the best interests of
the Issuer and its stockholders. Mr. Sanders, Mr. Bossung and the Augustine
Entities intend to work together to formulate an ongoing business model with
respect to the Issuer. Such policies may include sale of all or substantially
all of the Issuer's assets, merger with another entity, or similar transactions.
As a result, Mr. Sanders, Mr. Bossung and the Augustine Entities are currently
contemplating various material changes in the business of the Issuer; however,
no specific plans have been finalized for any specific such change.
Each Reporting Person may make further purchases of shares of Common
Stock. Reporting Persons may dispose of any or all the shares of Common Stock
held by them, although they have no current intention to do so. Except as noted
in this Schedule 13D, no Reporting Person has any plans or proposals which
relate to, or could result in, any of the matters referred to in paragraphs (b)
through (j), inclusive, of Item (4) of Schedule 13D. Reporting Persons may, at
any time and from time to time, review or reconsider their positions and
formulate plans or proposals with respect thereto.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
The percentages used in this Schedule 13D are calculated based upon the
number of outstanding shares of Common Stock, 3,296,600, reported as the number
of outstanding shares as of November 14, 2000, on a Form 10-Q for the period
ended September 30, 2000, plus certain additional issuances known to the
Reporting Persons to have occurred since that time. All purchases and sales of
Common Stock reported herein were made in private transactions.
Each of the Augustine Entities disclaims beneficial ownership of shares
of Common Stock held by the Devenshire Entities or the Alliance Entities. Each
of the Devenshire Entities disclaims beneficial ownership of shares of Common
Stock held by the Augustine Entities or the Alliance Entities. Each of the
Alliance Entities disclaims beneficial ownership of shares of Common Stock held
by the Augustine Entities or the Devenshire Entities.
(A) Augustine Capital
(a)-(b) See cover page.
15
(c) Augustine Capital has effected no transactions in the Common Stock
(other than through Augustine Fund).
(d) Decisions regarding the Common Stock with respect to Augustine Capital,
the general partner of Augustine Fund, are made by the controlling
members, directors and officers of Augustine Capital, all of whom are
John T. Porter, Brian D. Porter, Thomas Duszynski, David R. Asplund and
David M. Matteson.
(e) N/A.
(B) Augustine Fund
(a)-(b) See cover page.
(c) On December 7, 2000, Augustine Fund exercised an option to
acquire 325,000 shares of Common Stock at $1.25 per share from
a third party; such shares were issued by the Issuer to the
third party and re-sold to Augustine Fund. On December 14,
2000, Augustine Fund purchased $800,000 of the Issuer's 6%
Convertible Debentures, due June 13, 2001, convertible into
common stock at $1.75 per share.
(d) Decisions regarding the Common Stock with respect to Augustine
Fund, the general partner of which is Augustine Capital, are
made by the controlling members, directors and officers of
Augustine Capital, all of whom are John T. Porter, Brian D.
Porter, Thomas Duszynski, David R. Asplund and David M.
Matteson.
(e) N/A.
(C) John T. Porter
(a)-(b) See cover page.
(c) John T. Porter has effected no transactions in the Common
Stock (other than through Augustine Fund).
(d) N/A.
(e) N/A.
(D) Brian D. Porter
(a)-(b) See cover page.
16
(c) On December 14, 2000, Brian D. Porter purchased $500,000 of
the Issuer's 6% Convertible Debentures, due June 13, 2001,
convertible into common stock at $1.75 per share.
(d) N/A.
(e) N/A.
(E) Thomas Duszynski
(a)-(b) See cover page.
(c) Thomas Duszynski has effected no transactions in the Common
Stock (other than through Augustine Fund).
(d) N/A.
(e) N/A.
(F) David R. Asplund
(a)-(b) See cover page.
(c) David R. Asplund has effected no transactions in the Common
Stock (other than through Augustine Fund).
(d) N/A.
(e) N/A.
(G) Devenshire Management
(a)-(b) See cover page.
(c) On December 7, 2000, Devenshire Management exercised an option
to acquire 162,500 shares of Common Stock at $1.25 per share
from a third party; such shares were issued by the Issuer to
the third party and re-sold to Devenshire Management. On or
about December 12, 2000, Devenshire Management (on behalf of
Todd Sanders) received from the Issuer, as consideration for
Mr. Sanders's employment with the Issuer, 100,000 shares of
Common Stock and additional warrants to purchase 750,000
shares of Common Stock at $1.75 per share (20,000 of these
warrants which are in the name of The Zachary Todd Sanders
Trust, Zachary Todd Sanders is the son of Todd Sanders). A
copy of that warrant agreement is attached as Exhibit 2. On
17
December 14, 2000, Devenshire Management purchased $150,000 of
the Issuer's 6% Convertible Debentures, due June 13, 2001,
convertible into common stock at $1.75 per share. A copy of
such debenture is attached as Exhibit 3.
(d) Decisions regarding the Common Stock held in the name of
Devenshire Management are made exclusively by Todd Sanders,
the President of Devenshire Management.
(e) N/A.
(H) Todd Sanders
(a)-(b) See cover page.
(c) Todd Sanders has effected no transactions in the Common Stock
(other than through Devenshire Management).
(d) N/A.
(e) N/A.
(I) William C. Bossung
(a)-(b) See cover page.
(c) On December 7, 2000, Mr. Bossung exercised an option to
acquire 162,500 shares of Common Stock at $1.25 per share from
a third party; such shares were issued by the Issuer to the
third party and re-sold to Mr. Bossung. On or about November
22, 2000, Mr. Bossung received from the Issuer, as
consideration for Mr. Bossung's employment with the Issuer,
100,000 shares of Common Stock. On or about December 12, 2000,
Mr. Bossung received from the Issuer, as consideration for Mr.
Bossung's employment with the Issuer, warrants to purchase
750,000 shares of Common Stock at $1.75 per share. A copy of
that warrant agreement is attached as Exhibit 2. Both of those
issuances were issued in the name of Alliance. On December 14,
2000, Mr. Bossung purchased $350,000 of the Issuer's 6%
Convertible Debentures, due June 13, 2001, convertible into
common stock at $1.75 per share. A copy of such debenture is
attached as Exhibit 3.
(d) N/A.
(e) N/A.
18
(J) Alliance Financial Network, Inc.
(a)-(b) See cover page.
(c) Alliance has effected no transactions in the Common Stock
(other than through Mr. Bossung).
(d) Decisions by Alliance are made exclusively by William Bossung,
the President of Alliance.
(e) N/A.
(K) David M. Matteson
(a)-(b) See cover page.
(c) On or about December 12, 2000, David M. Matteson received from
the Issuer, as consideration for services rendered, warrants
to purchase 45,000 shares of Common Stock at $1.75 per share.
A copy of that warrant agreement is attached as Exhibit 2. On
December 14, 2000, Mr. Matteson purchased $50,000 of the
Issuer's 6% Convertible Debentures, due June 13, 2001,
convertible into common stock at $1.75 per share. A copy of
such debenture is attached as Exhibit 3.
(d) N/A.
(e) N/A.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER.
Delano Group Securities LLC, a Delaware limited liability company which
is owned by certain of the Augustine Entities, has entered into an agreement
with the Issuer to provide placement and investment banking services to the
Issuer, pursuant to which it received warrants to purchase 1.5 million shares of
Common Stock at $1.75 per share. A copy of that warrant agreement is attached as
Exhibit 2. Certain principals of Augustine Entities may be deemed to
beneficially own Common Stock issuable upon exercise of such warrant and such
shares are included in the amounts of Common Stock beneficially owned by the
Augustine Entities set forth on the cover pages to this Schedule 13D. Other than
that Agreement, the Joint Filing Agreement filed as Exhibit 1 to this filing and
as described elsewhere in this Schedule 13D, there are no contracts,
arrangements, understandings or relationships among the persons named in Item 2
hereof and between such persons and any person with respect to any securities of
the Issuer.
19
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
NO. DESCRIPTION
--- -----------
1 Joint Filing Agreement.
2 Form of Warrant Agreements entered into between the Issuer and
each of Devenshire Management, Alliance, David M. Matteson and
Delano Group Securities LLC.
3 Copy of the Issuer's 6% Convertible Debentures, due June 13,
2001.
20
SIGNATURES
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: January 12, 2001
AUGUSTINE FUND, L.P.
By: AUGUSTINE CAPITAL MANAGEMENT, LLC
General Partner
By: /s/ JOHN T. PORTER
--------------------------------
John T. Porter, President
AUGUSTINE CAPITAL MANAGEMENT, LLC
By: /s/ JOHN T. PORTER
--------------------------------
John T. Porter, President
DEVENSHIRE MANAGEMENT CORPORATION
By: /s/ TODD SANDERS
--------------------------------
Todd Sanders, President
ALLIANCE FINANCIAL NETWORK, INC.
By: /s/ WILLIAM BOSSUNG
--------------------------------
William Bossung, President
By: /s/ JOHN T. PORTER
----------------------------
John T. Porter
By: /s/ BRIAN D. PORTER
----------------------------
Brian D. Porter
By: /s/ THOMAS DUSZYNSKI
----------------------------
Thomas Duszynski
By: /s/ DAVID R. ASPLUND
----------------------------
David R. Asplund
By: /s/ TODD SANDERS
----------------------------
Todd Sanders
By: /s/ WILLIAM C. BOSSUNG
----------------------------
William C. Bossung
By: /s/ DAVID M. MATTESON
----------------------------
David M. Matteson
21