CUSIP No.: | 291345106 |
13D | Page 2 of 10 Pages |
1 | NAME OF REPORTING PERSONS MHR CAPITAL PARTNERS MASTER ACCOUNT LP |
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2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) |
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(a) o | |||||||||||
(b) þ | |||||||||||
3 | SEC USE ONLY | ||||||||||
4 | SOURCE OF FUNDS (See Instructions) | ||||||||||
WC | |||||||||||
5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) | ||||||||||
o | |||||||||||
6 | CITIZENSHIP OR PLACE OF ORGANIZATION | ||||||||||
Anguilla, British West Indies | |||||||||||
7 | SOLE VOTING POWER | ||||||||||
NUMBER OF | 5,101,144 | ||||||||||
SHARES | 8 | SHARED VOTING POWER | |||||||||
BENEFICIALLY | |||||||||||
OWNED BY | 0 | ||||||||||
EACH | 9 | SOLE DISPOSITIVE POWER | |||||||||
REPORTING | |||||||||||
PERSON | 5,101,144 | ||||||||||
WITH | 10 | SHARED DISPOSITIVE POWER | |||||||||
0 | |||||||||||
11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON | ||||||||||
5,101,144 | |||||||||||
12 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (See Instructions) | ||||||||||
o | |||||||||||
13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) | ||||||||||
15.8% | |||||||||||
14 | TYPE OF REPORTING PERSON (See Instructions) | ||||||||||
PN |
CUSIP No.: | 291345106 |
13D | Page 3 of 10 Pages |
1 | NAME OF REPORTING PERSONS MHR ADVISORS LLC |
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2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) |
||||||||||
(a) o | |||||||||||
(b) þ | |||||||||||
3 | SEC USE ONLY | ||||||||||
4 | SOURCE OF FUNDS (See Instructions) | ||||||||||
AF | |||||||||||
5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) | ||||||||||
o | |||||||||||
6 | CITIZENSHIP OR PLACE OF ORGANIZATION | ||||||||||
Delaware | |||||||||||
7 | SOLE VOTING POWER | ||||||||||
NUMBER OF | 5,797,905 | ||||||||||
SHARES | 8 | SHARED VOTING POWER | |||||||||
BENEFICIALLY | |||||||||||
OWNED BY | 0 | ||||||||||
EACH | 9 | SOLE DISPOSITIVE POWER | |||||||||
REPORTING | |||||||||||
PERSON | 5,797,905 | ||||||||||
WITH | 10 | SHARED DISPOSITIVE POWER | |||||||||
0 | |||||||||||
11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON | ||||||||||
5,797,905 | |||||||||||
12 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (See Instructions) | ||||||||||
o | |||||||||||
13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) | ||||||||||
17.8% | |||||||||||
14 | TYPE OF REPORTING PERSON (See Instructions) | ||||||||||
OO |
CUSIP No.: | 291345106 |
13D | Page 4 of 10 Pages |
1 | NAME OF REPORTING PERSONS MHR INSTITUTIONAL PARTNERS II LP |
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2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) |
||||||||||
(a) o | |||||||||||
(b) þ | |||||||||||
3 | SEC USE ONLY | ||||||||||
4 | SOURCE OF FUNDS (See Instructions) | ||||||||||
WC | |||||||||||
5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) | ||||||||||
o | |||||||||||
6 | CITIZENSHIP OR PLACE OF ORGANIZATION | ||||||||||
Delaware | |||||||||||
7 | SOLE VOTING POWER | ||||||||||
NUMBER OF | 1,599,035 | ||||||||||
SHARES | 8 | SHARED VOTING POWER | |||||||||
BENEFICIALLY | |||||||||||
OWNED BY | 0 | ||||||||||
EACH | 9 | SOLE DISPOSITIVE POWER | |||||||||
REPORTING | |||||||||||
PERSON | 1,599,035 | ||||||||||
WITH | 10 | SHARED DISPOSITIVE POWER | |||||||||
0 | |||||||||||
11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON | ||||||||||
1,599,035 | |||||||||||
12 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (See Instructions) | ||||||||||
o | |||||||||||
13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) | ||||||||||
5.1% | |||||||||||
14 | TYPE OF REPORTING PERSON (See Instructions) | ||||||||||
PN |
CUSIP No.: | 291345106 |
13D | Page 5 of 10 Pages |
1 | NAME OF REPORTING PERSONS MHR INSTITUTIONAL PARTNERS IIA LP |
||||||||||
2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) |
||||||||||
(a) o | |||||||||||
(b) þ | |||||||||||
3 | SEC USE ONLY | ||||||||||
4 | SOURCE OF FUNDS (See Instructions) | ||||||||||
WC | |||||||||||
5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) | ||||||||||
o | |||||||||||
6 | CITIZENSHIP OR PLACE OF ORGANIZATION | ||||||||||
Delaware | |||||||||||
7 | SOLE VOTING POWER | ||||||||||
NUMBER OF | 4,028,459 | ||||||||||
SHARES | 8 | SHARED VOTING POWER | |||||||||
BENEFICIALLY | |||||||||||
OWNED BY | 0 | ||||||||||
EACH | 9 | SOLE DISPOSITIVE POWER | |||||||||
REPORTING | |||||||||||
PERSON | 4,028,459 | ||||||||||
WITH | 10 | SHARED DISPOSITIVE POWER | |||||||||
0 | |||||||||||
11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON | ||||||||||
4,028,459 | |||||||||||
12 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (See Instructions) | ||||||||||
o | |||||||||||
13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) | ||||||||||
12.0% | |||||||||||
14 | TYPE OF REPORTING PERSON (See Instructions) | ||||||||||
PN |
CUSIP No.: | 291345106 |
13D | Page 6 of 10 Pages |
1 | NAME OF REPORTING PERSONS MHR INSTITUTIONAL ADVISORS II LLC |
||||||||||
2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) |
||||||||||
(a) o | |||||||||||
(b) þ | |||||||||||
3 | SEC USE ONLY | ||||||||||
4 | SOURCE OF FUNDS (See Instructions) | ||||||||||
AF | |||||||||||
5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) | ||||||||||
o | |||||||||||
6 | CITIZENSHIP OR PLACE OF ORGANIZATION | ||||||||||
Delaware | |||||||||||
7 | SOLE VOTING POWER | ||||||||||
NUMBER OF | 5,627,494 | ||||||||||
SHARES | 8 | SHARED VOTING POWER | |||||||||
BENEFICIALLY | |||||||||||
OWNED BY | 0 | ||||||||||
EACH | 9 | SOLE DISPOSITIVE POWER | |||||||||
REPORTING | |||||||||||
PERSON | 5,627,494 | ||||||||||
WITH | 10 | SHARED DISPOSITIVE POWER | |||||||||
0 | |||||||||||
11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON | ||||||||||
5,627,494 | |||||||||||
12 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (See Instructions) | ||||||||||
o | |||||||||||
13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) | ||||||||||
16.1% | |||||||||||
14 | TYPE OF REPORTING PERSON (See Instructions) | ||||||||||
OO |
CUSIP No.: | 291345106 |
13D | Page 7 of 10 Pages |
1 | NAME OF REPORTING PERSONS MHR FUND MANAGEMENT LLC |
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2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) |
||||||||||
(a) o | |||||||||||
(b) þ | |||||||||||
3 | SEC USE ONLY | ||||||||||
4 | SOURCE OF FUNDS (See Instructions) | ||||||||||
AF | |||||||||||
5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) | ||||||||||
o | |||||||||||
6 | CITIZENSHIP OR PLACE OF ORGANIZATION | ||||||||||
Delaware | |||||||||||
7 | SOLE VOTING POWER | ||||||||||
NUMBER OF | 11,425,399 | ||||||||||
SHARES | 8 | SHARED VOTING POWER | |||||||||
BENEFICIALLY | |||||||||||
OWNED BY | 0 | ||||||||||
EACH | 9 | SOLE DISPOSITIVE POWER | |||||||||
REPORTING | |||||||||||
PERSON | 11,425,399 | ||||||||||
WITH | 10 | SHARED DISPOSITIVE POWER | |||||||||
0 | |||||||||||
11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON | ||||||||||
11,425,399 | |||||||||||
12 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (See Instructions) | ||||||||||
o | |||||||||||
13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) | ||||||||||
30.8% | |||||||||||
14 | TYPE OF REPORTING PERSON (See Instructions) | ||||||||||
OO |
CUSIP No.: | 291345106 |
13D | Page 8 of 10 Pages |
1 | NAME OF REPORTING PERSONS MARK H. RACHESKY, M.D. |
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2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) |
||||||||||
(a) o | |||||||||||
(b) þ | |||||||||||
3 | SEC USE ONLY | ||||||||||
4 | SOURCE OF FUNDS (See Instructions) | ||||||||||
AF | |||||||||||
5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) | ||||||||||
o | |||||||||||
6 | CITIZENSHIP OR PLACE OF ORGANIZATION | ||||||||||
United States of America | |||||||||||
7 | SOLE VOTING POWER | ||||||||||
NUMBER OF | 11,519,697 | ||||||||||
SHARES | 8 | SHARED VOTING POWER | |||||||||
BENEFICIALLY | |||||||||||
OWNED BY | 0 | ||||||||||
EACH | 9 | SOLE DISPOSITIVE POWER | |||||||||
REPORTING | |||||||||||
PERSON | 11,519,697 | ||||||||||
WITH | 10 | SHARED DISPOSITIVE POWER | |||||||||
0 | |||||||||||
11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON | ||||||||||
11,519,697 | |||||||||||
12 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (See Instructions) | ||||||||||
o | |||||||||||
13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) | ||||||||||
31.0% | |||||||||||
14 | TYPE OF REPORTING PERSON (See Instructions) | ||||||||||
IN; HC |
Item 3 is hereby amended to add the following:
The source of funds to be used to purchase the Units (as defined herein) as described in Item 4 below will be $4 million of working capital of certain of the Reporting Persons.
Item 4 is hereby amended to add the following:
Securities Purchase Agreement
On August 19, 2009, Fund Management and the Issuer entered into that certain Securities Purchase Agreement (the Securities Purchase Agreement), whereby Fund Management agreed, subject to certain conditions, to purchase from the Issuer 6,015,037 Shares and warrants to purchase 3,729,323 Shares at an exercise price per warrant of $0.70 (the Offering Warrants). The Shares and Offering Warrants will be sold in units (the Units), with each Unit consisting of one Share and an Offering Warrant to purchase 0.62 Shares. Each Unit will be purchased at a price of $0.665, which purchase is expected to close on or about August 21, 2009, subject to the satisfaction of customary closing conditions. The Shares and Offering Warrants are immediately separable and will be issued separately. The Offering Warrants will be exercisable at any time after issuance and will expire five years from the date they are first exercisable. The obligation of Fund Management to purchase the Units is conditioned upon, among other things, the consummation of a concurrent registered offering to sell 5,714,286 Shares and warrants to purchase 2,685,714 Shares to two other institutional investors. The purchase of the Units by Fund Management is in lieu of, and satisfies any rights that it or any of its affiliates may have to acquire securities of the Company in the concurrent registered offering pursuant to the Issuers amended and restated certificate of incorporation.
The preceding paragraph is a summary description of the material terms of the Securities Purchase Agreement and the Offering Warrants, and is qualified in its entirety by reference to the terms of the Securities Purchase Agreement and Form of Offering Warrant, which are filed as Exhibits 1 and 2 hereto, respectively, and are incorporated herein by reference.
Exhibit No. | Description |
1 | Securities Purchase Agreement by and between Fund Management and the Issuer, dated as of August 19, 2009 (incorporated by reference to Exhibit 10.3 to the Issuers Current Report on Form 8-K filed August 20, 2009). |
2 | Form of Offering Warrant (incorporated by reference to Exhibit 4.2 to the Issuers Current Report on Form 8-K filed August 20, 2009). |
Date: August 20, 2009 | MHR CAPITAL PARTNERS MASTER ACCOUNT LP | |||||||
By: | MHR Advisors LLC, | |||||||
its General Partner | ||||||||
By: /s/ Hal Goldstein | ||||||||
Name: Hal Goldstein | ||||||||
Title: Vice President | ||||||||
MHR ADVISORS LLC | ||||||||
By: /s/ Hal Goldstein | ||||||||
Name: Hal Goldstein | ||||||||
Title: Vice President | ||||||||
MHR INSTITUTIONAL PARTNERS II LP | ||||||||
By: | MHR Institutional Advisors II LLC, | |||||||
its General Partner | ||||||||
By: /s/ Hal Goldstein | ||||||||
Name: Hal Goldstein | ||||||||
Title: Vice President | ||||||||
MHR INSTITUTIONAL PARTNERS IIA LP | ||||||||
By: | MHR Institutional Advisors II LLC, | |||||||
its General Partner | ||||||||
By: /s/ Hal Goldstein | ||||||||
Name: Hal Goldstein | ||||||||
Title: Vice President | ||||||||
MHR INSTITUTIONAL ADVISORS II LLC | ||||||||
By: /s/ Hal Goldstein | ||||||||
Name: Hal Goldstein | ||||||||
Title: Vice President | ||||||||
MHR FUND MANAGEMENT LLC | ||||||||
By: /s/ Hal Goldstein | ||||||||
Name: Hal Goldstein | ||||||||
Title: Managing Principal | ||||||||
MARK H. RACHESKY, M.D. | ||||||||
/s/ Hal Goldstein, Attorney in Fact | ||||||||