Unassociated Document

 
SCHEDULE 13G
 
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
 
Under the Securities Exchange Act of 1934
(Amendment No. )*
 
GENTA INCORPORATED
(Name of Issuer)
 
Common Stock, par value $0.001 per share
(Title of Class of Securities)
 
 
37245M603
  
 
(CUSIP Number)
 
September 4, 2009
  
 
(Date of Event which Requires Filing of this Statement)
  
 
Check the appropriate box to designate the rule pursuant to which this Schedule is filed:
 
o Rule 13d-1(b)
 
x Rule 13d-1(c)
 
o Rule 13d-1(d)
 
*The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.
 
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 (the “Act”) 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).
 
 
Page 1 of 9 Pages
 

CUSIP No.  37245M603
 
1
 NAMES OF REPORTING PERSONS
 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
  Felix J. Baker
2
 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) 
(a) ¨
(b) ¨
 
3
 
 SEC USE ONLY
 
4
 
 CITIZENSHIP OR PLACE OF ORGANIZATION
 
  United States
 
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH
 
5
 
 SOLE VOTING POWER
 
       -0-
 
6
 
 SHARED VOTING POWER
 
        16,968,279
 
7
 
 SOLE DISPOSITIVE POWER
 
           -0-
 
8
 
 SHARED DISPOSITIVE POWER
 
       16,968,279
 
9
 
 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 
       16,968,279
 
10
 
 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES 
¨
 (See Instructions)
 
11
 
 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
 
     9.9%
 
12
 
 TYPE OF REPORTING PERSON (See Instructions)
      IN
 
 

 
 
Page 2 of 9 Pages
 
 
CUSIP No.  37245M603
 
 
1
 
 NAMES OF REPORTING PERSONS
 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
 
  Julian C. Baker
 
2
 
 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) 
(a) ¨
(b) ¨
 
3
 
 SEC USE ONLY
 
4
 
 CITIZENSHIP OR PLACE OF ORGANIZATION
 
  United States
 
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH
 
5
 
 SOLE VOTING POWER
 
       -0-
 
6
 
 SHARED VOTING POWER
 
        16,968,279
 
7
 
 SOLE DISPOSITIVE POWER
 
           -0-
 
8
 
 SHARED DISPOSITIVE POWER
 
16,968,279
 
9
 
 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 
       16,968,279
 
10
 
 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES 
¨
 (See Instructions)
 
11
 
 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
 
     9.9%
 
12
 
 TYPE OF REPORTING PERSON (See Instructions)
      IN
 



 
Page 3 of 9 Pages
 
Item 1(a)                      Name of Issuer:
 
      Genta Incorporated, a Delaware corporation (the “Issuer”)
 
Item 1(b)                      Address of Issuer’s Principal Executive Offices:
 
      200 Connell Drive
      Berkeley Heights, NJ  07922
 
Item 2(a)                      Name of Person Filing:
 
      This Schedule 13G is being filed jointly by Felix J. Baker and Julian C. Baker (the “Reporting Persons”).
 
Item 2(b)                      Address of Principal Business Office or, if None, Residence:
 
Name
Business Address
   
Felix J. Baker
667 Madison Avenue
New York, NY  10065
   
Julian C. Baker
667 Madison Avenue
New York, NY  10065
 
Item 2(c)                      Citizenship:
 
      Each of the Reporting Persons is a United States citizen.
 
Item 2(d)                      Title of Class of Securities:
 
      Common Stock, par value $0.001 per share
 
Item 2(e)                      CUSIP Number:
 
37245M603
 
Item 3.
If this statement is filed pursuant to §§240.13d-1(b) or (c), check whether the person filing is a:   N/A
 
(a) o Broker or dealer registered under Section 15 of the Exchange Act.
 
(b) o Bank as defined in section 3(a)(6) of the Exchange Act.
 
(c) o Insurance company as defined in section 3(a)(19) of the Exchange Act.
 
(d) o Investment company registered under section 8 of the Investment Company Act of 1940.
 
(e) o An investment adviser in accordance with Rule 13d-1(b)(1)(ii)(E).
 
 
Page 4 of 9 Pages
 
(f) o An employee benefit plan or endowment fund in accordance with Rule 13d-1(b)(1)(ii)(F).
 
(g) o A parent holding company or control person in accordance with Rule 13d-1(b)(1)(ii)(G).
 
(h) o A savings association as defined in Section 3(b) of the Federal Deposit Insurance Act.
 
(i) o A church plan that is excluded from the definition of an investment company under section 3(c)(14) of the Investment Company Act of 1940.
 
(j) o Group, in accordance with Rule 13d-1(b)(1)(ii)(J).
 
Item 4.                                Ownership.
 
Set forth below is the aggregate number of shares of Common Stock held, including shares that may be acquired upon conversion of Convertible notes as described below up to 9.999% of outstanding shares and the exercise of warrants as described below up to 4.999% of outstanding shares, as of the date hereof by each of the following. Together with the percentage of outstanding shares of Common Stock that such number represents based upon 169,684,485 shares outstanding according to information obtained from the Company on September 16, 2009 and the number of shares of common stock that would have been issued upon conversion of convertible notes and exercise of warrants if converted and or exercised.
 
Name
  
Number of Shares
    
Percent of Class
Outstanding
  
667, L.P.
     11,647,351       6.5 %
Baker Brothers Life Sciences, L.P.
     16,968,279       9.7 %
14159, L.P.
     1,581,684       0.9 %
 
  
 
    
 
  
Total
     16,968,279       9.9 %

The Reporting Persons beneficially own $292,000 principal amount 8% Unsecured convertible notes due July 7, 2011 and $1,979,000 principal amount 8% Unsecured Subordinated Convertible notes due September 4, 2011, both of which are only convertible to the extent that the holders thereof and their affiliates would beneficially own, for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, no more than 9.999% of the outstanding shares of Common Stock of the Issuer after conversion.
 
The Reporting Persons beneficially own $1,850,000 principal amount 8% Senior convertible notes due April 12, 2012, $75,000 principal amount 15% Senior convertible notes due June 9, 2010, $11,000 principal amount 15% Senior convertible notes due June 9, 2010, $62,000 principal amount 15% Senior convertible notes due April 2, 2012, and $3,200 principal amount 15% Senior convertible notes due June 9, 2010, all of which are only convertible to the extent that the holders thereof and their affiliates would beneficially own, for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, no more than 4.999% of the outstanding shares of Common Stock of the Issuer after conversion.
 
 
Page 5 of 9 Pages
 
As a result of these restrictions, the number of shares that may be issued on conversion of the notes by the above holders may change depending upon changes in the outstanding shares.  The number of shares issuable upon conversion of the notes held by any particular Baker Bros. affiliate will also depend upon the extent to which the notes held by other Baker Bros. affiliates have theretofore been converted.
 
The Reporting Persons are the beneficial owners of a warrant issued in April 2009 to purchase  4,625,000 shares of the Issuer’s common stock at an exercise price of $0.50 per share which expires on October 2, 2012 (the “April 2009 Warrant”), a warrant issued in July 2009 to purchase  1,660,000 shares of the Issuer’s common stock at an exercise price of $0.50 per share which expires on July, 7, 2011 (the “July 2009 Warrant”), and a warrant issued in September 2009 to purchase  4,947,514 shares of the Issuer’s common stock at an exercise price of $1.00 per share which expires on March 4, 2012 (the “September 2009 Warrant”).
 
The April 2009 Warrant is exercisable within 60 days of the date of this filing on October 2, 2009 but only to the extent that after such exercise, the Reporting Persons would beneficially own no more than 4.999% of the Issuer’s Common Stock.
 
The July 2009 Warrant and the September 2009 Warrant are not exercisable until January 7, 2010 and March 4, 2010, respectively and after such dates are only exercisable to the extent that after such exercise, the Reporting Persons would beneficially own no more than 4.999% of the Issuer’s Common Stock.
 
As a result of these restrictions, the number of shares that may be issued upon exercise of the warrants by the above holders may change depending upon changes in the outstanding shares.  The number of shares issuable upon exercise of the warrants held by any particular Baker Bros. affiliate will also depend upon the extent to which the warrants and notes held by other Baker Bros. affiliates have theretofore been converted.
 
By virtue of their ownership of entities that have the power to control the investment decisions of the limited partnerships listed in the table above, Felix J. Baker and Julian C. Baker may each be deemed to be beneficial owners of shares owned by such entities and may be deemed to have shared power to vote or direct the vote of and shared power to dispose or direct the disposition of such securities.
 
Item 5.  
Ownership of Five Percent or Less of a Class.
 
If this statement is being filed to report the fact that as of the date hereof the reporting person has ceased to be the beneficial owner of more than five percent of the class of securities, check the following o.      N/A
 
 
Page 6 of 9 Pages
 
Item 6.  
Ownership of More than Five Percent on Behalf of Another Person.
 
The entities listed in Item 4 above are investment funds the investors in which have the right to receive dividends, interest and the proceeds of sale of securities owned by such funds.
 
Item 7.
Identification and Classification of the Subsidiary Which Acquired the Security Being Reported on by the Parent Holding Company or Control Person.
 
N/A
 
Item 8.
Identification and Classification of Members of the Group.
 
N/A
 
Item 9.
Notice of Dissolution of Group.
 
N/A
 
Item 10.
Certification.
 
By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect.
 

 
Page 7 of 9 Pages
 
 
SIGNATURE
 
After reasonable inquiry and to the best of my knowledge and belief, I hereby certify that the information set forth in this statement is true, complete and correct.
 
September 16, 2009
 
 
/s/ Felix J. Baker
 
Felix J. Baker
   
   
 
/s/ Julian C. Baker
 
Julian C. Baker
   

 
 
Page 8 of 9 Pages
 
AGREEMENT
 
In accordance with Rule 13d-1(k)(1) under the Securities Exchange Act of 1934, as amended, the undersigned hereby agree that this Statement on Schedule 13G relating to the Common Stock of Genta Incorporated is being filed with the Securities and Exchange Commission on behalf of each of them.
 
September 16, 2009
 
 
/s/ Felix J. Baker
 
Felix J. Baker
   
   
 
/s/ Julian C. Baker
 
Julian C. Baker
   

 
 
Page 9 of 9 Pages