Filed Pursuant to Rule 424(b)(3) and (c)
File Number 333-35079
PROSPECTUS SUPPLEMENT DATED AUGUST 31, 1997
to
Prospectus Dated November 12, 1997
ATLANTIC PHARMACEUTICALS, INC.
1,500,000 PREVIOUSLY REGISTERED REDEEMABLE WARRANTS, EACH
EXERCISABLE FOR ONE SHARE OF COMMON STOCK, OFFERED BY CERTAIN SELLING
SECURITYHOLDERS
3,702,750 PREVIOUSLY REGISTERED SHARES OF COMMON STOCK
3,805,654 SHARES OF COMMON STOCK,
OFFERED BY CERTAIN SELLING SECURITYHOLDERS
THIS PROSPECTUS SUPPLEMENT SUPPLEMENTS THE PROSPECTUS DATED
NOVEMBER 12, 1997 (THE "PROSPECTUS") OF ATLANTIC PHARMACEUTICALS, INC., A
DELAWARE CORPORATION (THE "COMPANY"), RELATING TO THE PUBLIC OFFERING, WHICH
IS NOT BEING UNDERWRITTEN, OF (a) 1,500,000 PREVIOUSLY REGISTERED REDEEMABLE
WARRANTS (THE "WARRANTS"), EACH OF WHICH IS EXERCISABLE FOR ONE PREVIOUSLY
REGISTERED SHARE OF COMMON STOCK, PAR VALUE $0.001 PER SHARE (THE "COMMON
STOCK"), OF THE COMPANY, (b) AN AGGREGATE OF 3,702,750 PREVIOUSLY REGISTERED
SHARES OF COMMON STOCK (COLLECTIVELY, THE "UNIT OFFERING SHARES") AND (c) AN
AGGREGATE OF 2,530,637 SHARES OF COMMON STOCK (COLLECTIVELY, THE "NEW
SHARES"), CONSISTING OF (i) 2,202,216 SHARES ISSUABLE UPON CONVERSION OF
1,237,200 SHARES OF THE COMPANY'S SERIES A CONVERTIBLE PREFERRED STOCK, PAR
VALUE $0.001 PER SHARE (THE "SERIES A PREFERRED"), RECEIVED BY CERTAIN
SELLING SECURITYHOLDERS IN PRIVATE PLACEMENT TRANSACTIONS OF THE COMPANY,
(ii) 220,221 SHARES ISSUABLE UPON CONVERSION OF 123,720 SHARES OF SERIES A
PREFERRED UNDERLYING WARRANTS TO PURCHASE SUCH SHARES OF SERIES A PREFERRED,
(iii) 103,200 SHARES ISSUED IN CONNECTION WITH THE COMPANY'S ACQUISITION OF
THE MINORITY INTEREST IN CHANNEL THERAPEUTICS, INC. AND (iv) 5,000 SHARES
TRANSFERRED TO CERTAIN SELLING SECURITYHOLDERS BY A CERTAIN OTHER STOCKHOLDER
IN CONNECTION WITH A SETTLEMENT AGREEMENT. THE NEW SHARES, THE WARRANTS AND
THE UNIT OFFERING SHARES ARE COLLECTIVELY REFERRED TO AS THE "SECURITIES."
THIS PROSPECTUS SUPPLEMENT SHOULD BE READ IN CONJUNCTION WITH THE PROSPECTUS,
AND THIS PROSPECTUS SUPPLEMENT IS QUALIFIED BY REFERENCE TO THE PROSPECTUS
EXCEPT TO THE EXTENT THAT THE INFORMATION HEREIN CONTAINED SUPERSEDES THE
INFORMATION CONTAINED IN THE PROSPECTUS. CAPITALIZED TERMS USED IN THIS
PROSPECTUS SUMMARY AND NOT OTHERWISE DEFINED HEREIN HAVE THE MEANINGS
SPECIFIED IN THE PROSPECTUS.
SELLING SECURITYHOLDERS
The following table sets forth, as of August 27, 1998, the number
of shares of Common Stock beneficially owned by stockholders of the Company
identified in the Prospectus as Selling Securityholders. However, any or all
of the shares of Common Stock listed below may be offered for sale pursuant
to this Prospectus by the Selling Securityholders from time to time.
Accordingly, no estimate can be given as to the amounts of shares of Common
Stock that will be held by the Selling Securityholders upon consummation of
any such sales. In addition, the Selling Securityholders identified below
may have sold, transferred or otherwise disposed of all or a portion of their
shares of Common Stock since the date on which the information regarding
their shares of Common Stock was provided, in transactions exempt from the
registration requirements of the Act. The table of Selling Securityholders
on page 18 of the Prospectus is hereby deleted in its entirety and
supplemented with the following table:
COMMON STOCK
------------
NUMBER NUMBER
BENEFICIALLY OFFERED
NAME AND POSITION OF SELLING SECURITYHOLDER OWNED HEREBY
- ------------------------------------------- ----- ------
Joseph Stevens & Company, L.P. (2) 330,000 330,000
Ronald J. DiCamillo 3,000 3,000
John Elges 1,000 1,000
Lindsay A. Rosenwald, M.D. (3) 1,133,458 788,951
H. Lawrence Shaw, M.D. (4) 23,682 23,557
Sumner Burstein, Ph.D. 11,250 11,250
William A. Ryan, Jr. 48 48
Carl Spana, Ph.D. 3,777 3,777
Paul Weisz, Ph.D. 7,500 7,500
Eliot Barnathan, M.D. 7,500 7,500
Alexander W. Clowes, M.D. 750 750
Dwight Robinson, M.D. 750 750
Paul Rys, Ph.D. 750 750
David DeWitt, Ph.D. 750 750
---------------------------------
TOTAL 1,524,215 1,179,583
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(2) Represents shares of Common Stock underlying the Underwriter's Warrants
and the Underwriter's Redeemable Warrants, which are fully exercisable as
of the date hereof. Joseph Stevens & Company, L.P. acted as the
underwriter of the Unit Offering and is a greater than five percent
stockholder of the Company.
(3) Includes 788,951 shares of Common Stock underlying a fully-exercisable
option granted to Dr. Rosenwald. Dr. Rosenwald, a principal stockholder
of the Company, is the President and sole stockholder of the Placement
Agent and of VentureTek, L.P., a principal stockholder of the Company.
(4) Includes 23,557 shares of Common Stock underlying a fully-exercisable
option granted to Dr. Shaw.
The preceding table has been prepared based upon information
furnished to the Company by Continental Stock Transfer & Trust Company. From
time to time, additional information concerning ownership of the shares of
Common Stock may rest with certain holders thereof not named in the preceding
table, with whom the Company believes it has no affiliation.
The following table sets forth the number of shares of Common Stock
issuable upon conversion of shares of Series A Preferred beneficially owned
by stockholders of the Company identified in the Prospectus as Selling
Securityholders, based upon the conversion rate as of the effective date of
the Prospectus. At such time and until August 6, 1998, each share of Series
A Preferred was convertible into 2.12 shares of Common Stock. The Company
has undertaken to register the resale of additional shares of Common Stock
issuable upon conversion of the Series A Preferred resulting from the
adjustment, effective August 7, 1998, in the conversion rate. See
"Description of Securities--Series A Preferred Stock--Conversion." Any or
all of the shares of Common Stock listed below may be offered for sale
pursuant to this Prospectus by the Selling Securityholders from time to time.
Accordingly, no estimate can be given as to the amounts of shares of Common
Stock that will be held by the Selling Securityholders upon consummation of
any such sales. In addition, the Selling Securityholders identified below
may have sold, transferred or otherwise disposed of all or a portion of their
shares of Series A Preferred since the date on which the information
regarding their Series A Preferred was provided, in transactions exempt from
the registration requirements of the Act. The table of Selling
Securityholders on pages 18 to 22 of the Prospectus is hereby deleted in its
entirety and supplemented with the following table:
COMMON STOCK (5)
------------
NUMBER NUMBER
BENEFICIALLY OFFERED
NAME AND POSITION OF SELLING SECURITYHOLDER OWNED HEREBY
- ------------------------------------------- ----- ------
Mark Abel 5,300 5,300
Ross D. Ain 2,120 2,120
Sal and Lorraine Albanese 5,359 5,359
Leslie and Maria Anderson 10,600 10,600
Andrade Enterprises, LLC 21,200 21,200
Mario Aristizabal 5,397 5,397
Harriet E. Arneson 5,300 5,300
Austray Limited 42,400 42,400
Martin G. Ballweg 10,600 10,600
Bryan C. and Leah D. Barker 5,300 5,300
Ronald Baruch 742 742
Sam & Katie Benrubi 5,300 5,300
Larry Bernstein 2,120 2,120
Blumen Partners 1,329 1,329
Lewis S. Broad 10,600 10,600
Betty Joan Burr 2,650 2,650
Henry Burr 2,650 2,650
John Burr 2,650 2,650
Cambrian Investments Limited Partnership 5,300 5,300
Robert A. Cameron 10,600 10,600
Francis P. Cappione 1,329 1,329
Thomas L. Cassidy 2,650 2,650
Jacob T. Chachkes and Bette Chachkes, Trustees for Jacob T. Chachkes, M.D., P.C., MPPP,
Dated 11-1-85 5,300 5,300
Richard L. Childs 2,650 2,650
Moun-Shung Chi & Sue-Jame Chi, Co-Trustees, Chi Living Trust 42,400 42,400
Claughton Company Inc. 5,300 5,300
CNCA SCT BRUNOY/acct BGP 53,000 53,000
Irwin J. Cohen, M.D. 5,300 5,300
Max Cohen 2,650 2,650
Concordia Partners L.P. 26,500 26,500
Robert J. Conrads 3,983 3,983
Bradley Cooper 10,600 10,600
Archibald Cox, Jr. 27,398 27,398
Thomas H. Cruikshank 10,600 10,600
Alfred C. D'Alessandro 5,300 5,300
Michael and Mary Darling JTWROS 5,300 5,300
Andrew Davilman & Nancy Davilman, JTWROS 5,300 5,300
Tommy Lee Davis 21,200 21,200
Delaware Charter FBO R. Craig Fetz 42,400 42,400
Chris P. Dialynas, as Trustee of the Chris and Sheri Dialynas Living Trust, Dated
January 30, 1997 10,600 10,600
Dorothy Dulman 10,600 10,600
David Dworetzky 5,300 5,300
Edward Dworetzky 21,200 21,200
Robert & Evelyn Elliott Trust 5,300 5,300
Richard C. & Mary Ann Fick Community Property 5,300 5,300
Denis Fortin 5,300 5,300
Lloyd A. Fox 10,600 10,600
Brian D. Frenzel 5,300 5,300
Benjamin & Sharyn Friedman 5,300 5,300
Merrit Brad Friedman 5,300 5,300
Craig S. Frolich 2,650 2,650
Gerald Frolich & Gloria A. Frolich JT Ten. 5,300 5,300
Robert J. Gall 5,300 5,300
A. Mark Gambee, M.D. and Karen D. Todd, M.D. J.T.-W.R.O.S. 5,300 5,300
Ofelia Anton Gomez 1,700 1,700
Michael J. Gordon 663 663
Robert P. Gordon 1,325 1,325
Philip Granowitz 5,300 5,300
Bernard Gross 1,066 1,066
Grossman Family Trust 5,300 5,300
Leonard Grunstein 2,323 2,323
Allison Gushe Molkenthin 10,282 10,282
Alan and Paula Halperin 5,300 5,300
Fridolf Hanson 4,240 4,240
Harrigan Family Trust 5,300 5,300
Thomas Scott Haydon & Thomas Welch Haydon 5,300 5,300
Austin E. Hills 5,300 5,300
HM Singer & Co Employee Pension Trust, Howard M. Singer TTEE U/A/D/ 1/1/95 5,300 5,300
Harry Huang and Adrienne Masters, Tenants by the Entirety 8,480 8,480
Hull Overseas, Ltd. 10,600 10,600
Gerald Johnston 10,600 10,600
Charles Jurgensmeyer 10,600 10,600
Joe Jurgensmeyer 10,600 10,600
Robert Jurgensmeyer 10,600 10,600
Virgil Jurgensmeyer 10,600 10,600
Patrick M. Kane 5,598 5,598
Amram Kass P.C. Defined Benefit Pension Plan 2,650 2,650
Ery W. & Helga L. Kehaya, JTWROS 21,200 21,200
Kenbar Group, LP 31,800 31,800
Donald R. Kendall, Jr. 10,600 10,600
John R. Kennedy 1,325 1,325
Shirley F. Kerbel 5,300 5,300
Keys Foundation 53,000 53,000
Robert Knox 5,300 5,300
Gwen S. Korovin, M.D. 5,300 5,300
Larkstone Inc. 21,200 21,200
Joseph Larosa 5,300 5,300
Laser Trading Ltd. 2,139 2,139
Stephen H. Lebovitz 10,600 10,600
Theodore Levine 5,300 5,300
Hyman Lezell Revocable Trust 21,200 21,200
L.G. Foley Inc. Profit Sharing Plan 10,600 10,600
Donna Lipman and Lawrence Lipman, Tenants in Common 5,300 5,300
Alfredo Livas 3,180 3,180
M&S Andrade Rev. Tr. For Comm. & Sep. Property UA Dtd 10/19/78, as amended 5,300 5,300
Jon S. Marks 5,300 5,300
William M. Marks 5,300 5,300
Masada I Limited Ptnrs 1,859 1,859
Kevin T. McManus, MD 1,329 1,329
Lindsay A. McManus 5,300 5,300
Mega International Corporation 5,300 5,300
William H. Metzger MD Inc. Retirement Trust 5,300 5,300
Maurice Meyer III 5,300 5,300
Michael C. Miles 5,300 5,300
Mike & Terry Miller 5,300 5,300
Moonlight International Ltd 25,440 25,440
W. Kym Murphy 5,300 5,300
Arthur J. Nagle 5,300 5,300
Mechie Nebenzahl 2,120 2,120
John S. Osterweis, Trustee For The Osterweis Revocable Trust U/A Dated 09/13/93 2,650 2,650
Palmetto Partners, Ltd. 10,648 10,648
Alan Paulenoff 5,300 5,300
Gregory P. & Christine K. Pellizzon 5,300 5,300
Peter & Pamela Pellizzon 5,300 5,300
Nita E. Pepper and James G. Pepper, Co Trustees, Trust F/B/O Nita E. Pepper U/A
Dtd 1/9/90 21,200 21,200
Dr. Tis Prager 7,950 7,950
Profutures Special Equities Fund, LP 10,600 10,600
Alois Putre Jr. 5,300 5,300
Raimundo J. Rodriguez P. and Anelies H. Huter de R. 5,300 5,300
Marion Roffer 10,600 10,600
Robert W. Rohrlich 5,300 5,300
Michael Rosenbaum 10,600 10,600
Jonathan Rothschild 5,300 5,300
RSA Trust (DTD) 3/7/95 (Ralph E. Adams Jr. and Shirlee Yvonne Adams, Trustees for
RSA Trust) 5,300 5,300
Alan T. Rubin 15,900 15,900
David W. Ruttenberg 5,300 5,300
Sagres Group Ltd. 16,198 16,198
Gordon S. Salter 5,300 5,300
Kaya K. Sarier 2,650 2,650
Barry A. Saunders 5,300 5,300
Jan A. Saunders 5,300 5,300
Robert Schlotterbeck & Barbara J. Schlotterbeck, TTEES U/A Dtd 12/22/89 The
Schlotterbeck Family Trust 5,300 5,300
Robert L. Schuessler 5,300 5,300
Carl F. Schwartz 7,950 7,950
Roberto Segovia 5,300 5,300
Uri R. Shabto M.D., P.C. 5,300 5,300
Gerald Shepps 5,300 5,300
Melvin Silon 5,300 5,300
Nathaniel Silon Revocable Living Trust Dtd 6/2/93 21,200 21,200
William & Elinor Silver 5,300 5,300
Ronald Simon 1,325 1,325
Harvey Slevin, TTEE U/A Dtd 4/25/90 Harvey Slevin Revoc. Liv. Trust 1,325 1,325
Hollis R. and Lucille B. Smith 5,300 5,300
Philip Solomon 5,300 5,300
Sovereign Partners L.P. 21,200 21,200
Robert L. Spint Trustee For Robert L. Spint Trust UAD 10/19/89 5,300 5,300
Stern Joint Venture, L.P. 15,900 15,900
Andrew Strassman 5,300 5,300
Joseph & Barbara Strassman 21,200 21,200
Richard Strassman 5,300 5,300
Robert Strassman 2,650 2,650
Burton M. Strauss, Jr. 5,300 5,300
Michael and Pamela Sulewski 2,650 2,650
Sidney Sutter 3,701 3,701
The 1992 Houston Partnership, L.P. 10,600 10,600
Tokenhouse Trading Company Limited 14,199 14,199
Alyce P. Twomey 2,650 2,650
Union D'Etudes et D'Investissements 106,000 106,000
Valori Associates, Inc. 2,650 2,650
Donald E. and Virginia V. Vinson Trust 5,300 5,300
J. Vitols 21,200 21,200
Mark & Sallie Lynn Walko 6,599 6,599
Saul Waring 5,300 5,300
Paul H. Warren 10,600 10,600
Robert J. Whetten 7,950 7,950
Allen Whipple 31,800 31,800
John R. Wiencek 1,619 1,619
B. R. Williamson Jr. 10,600 10,600
Robert B. Wolford IRA 5,300 5,300
Charles C. Young 3,975 3,975
Lindsay A. Rosenwald, M.D. (6)(7) 100,004 100,004
Scott A. Katzman (6)(8) 35,529 35,529
Michael S. Weiss (6)(9) 14,885 14,885
Wayne L. Rubin (6)(8) 14,885 14,885
Credit Agricole (6)(10) 10,593 10,593
A. Joseph Rudick, Jr., M.D. (6)(11) 10,540 10,540
Tim McInerney (6)(8) 9,484 9,484
Martin S. Kratchman (6)(8) 9,121 9,121
Richard Strassman (6)(8) 8,501 8,501
Karl Ruggeberg (6)(8) 8,102 8,102
David R. Walner (6)(8) 5,000 5,000
Bluestone Capital (6)(10) 4,370 4,370
Marc Florin (6)(8) 3,475 3,475
Joseph Edelman (6)(8) 3,276 3,276
Peter M. Kash (6)(8) 3,122 3,122
Joseph Fabiani, Jr. (6)(8) 2,648 2,648
Deborah Solomon (6)(8) 2,489 2,489
Lauren S. Fischer (6)(8) 1,135 1,135
John Knox (6)(8) 1,135 1,135
-------------------------------
TOTAL 1,827,279 1,827,279
- --------------------------
(5) Represents shares of Common Stock into which the shares of Series A
Preferred owned by such Selling Securityholder are convertible. This
Registration Statement shall also cover any additional shares of Common
Stock which become issuable in connection with the shares registered for
sale hereby by reason of any stock dividend, stock split, recapitalization
or other similar transaction effected without the receipt of consideration
which results in an increase in the number of the Selling Securityholder's
outstanding shares of Common Stock.
(6) Represents shares of Common Stock issuable upon conversion of Series A
Preferred issuable upon exercise of the Placement Warrants. This
Registration Statement shall also cover any additional shares of Common
Stock which become issuable in connection with the shares registered for
sale hereby by reason of any stock dividend, stock split, recapitalization
or other similar transaction effected without the receipt of consideration
which results in an increase in the number of the Selling Securityholder's
outstanding shares of Common Stock.
(7) Lindsay A. Rosenwald, M.D., a principal stockholder of the Company, is the
President and sole stockholder of Paramount Capital, Inc. ("Paramount").
VentureTek, L.P., a principal stockholder of the Company, is a limited
partnership, the limited partners of which include Dr. Rosenwald's wife,
children, sisters of Dr. Rosenwald's wife, and their husbands and
children.
(8) Securityholder is agent of Paramount.
(9) Michael S. Weiss, the Company's Secretary, is a Senior Managing Director
of Paramount.
(10) Securityholder acted as a Selected Dealer in the Private Placement.
(11) Dr. Rudick, an associate of the Placement Agent and Paramount Capital
Investments, LLC, is a director of each of Channel Therapeutics, Inc. and
Optex Ophthalmologics, Inc., each a wholly owned subsidiary of the
Company.
The preceding table has been prepared based upon information
furnished to the Company by Continental Stock Transfer & Trust Company. From
time to time, additional information concerning ownership of the shares of
Common Stock may rest with certain holders thereof not named in the preceding
table, with whom the Company believes it has no affiliation.
DESCRIPTION OF SECURITIES
SERIES A PREFERRED STOCK
CONVERSION. Pursuant to the Certificate of Designations of the Series
A Preferred, on August 7, 1998, the conversion price of the Series A
Preferred was adjusted from $4.72 per share to $3.06 per share. As a result,
on such date the conversion rate of the Series A Preferred was adjusted such
that each share of Series A Preferred converted after August 7, 1998 is
convertible into 3.27 shares of Common Stock, whereas each share of Series A
Preferred converted prior to August 7, 1998 was convertible into 2.12 shares
of Common Stock.
--------------------
