UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D/A
Under the Securities Exchange Act of 1934
(Amendment No. 12)*
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A.P. Pharma, Inc.
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(Name of Issuer)
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Common Stock, par value $0.01 per share
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(Title of Class of Securities)
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00202J203
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(CUSIP Number)
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Kevin C. Tang
Tang Capital Management, LLC
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4747 Executive Drive, Suite 510
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San Diego, CA 92121
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(858) 200-3830
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(Name, Address and Telephone Number of Person Authorized to
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Receive Notices and Communications)
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November 20, 2013
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(Date of Event which Requires Filing of this Statement)
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If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. x
Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See § 240.13d-7 for other parties to whom copies are to be sent.
* 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 (“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).
(Continued on following pages)
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CUSIP NO. 00202J203
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13D/A
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Page 2 of 8
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1.
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Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
Tang Capital Partners, LP
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2.
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Check the Appropriate Box if a Member of a Group
(a) ¨
(b) ý
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3.
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SEC Use Only
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4.
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Source of Funds
WC
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5.
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Check If Disclosure of Legal Proceeding Is Required Pursuant to Items 2(d) or 2(e)
¨
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6.
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Citizenship or Place of Organization
Delaware
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Number of
Shares Beneficially
Owned by
Each Reporting
Person With
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7.
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Sole Voting Power
0
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8.
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Shared Voting Power
81,713,600
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9.
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Sole Dispositive Power
0
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10.
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Shared Dispositive Power
81,713,600
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11.
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Aggregate Amount Beneficially Owned by Each Reporting Person
81,713,600
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12.
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Check if the Aggregate Amount in Row (11) Excludes Certain Shares ¨
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13.
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Percent of Class Represented by Amount in Row (11)
17.7%
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14
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Type of Reporting Person
PN
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Page 2 of 8
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CUSIP NO. 00202J203
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13D/A
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Page 3 of 8 |
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1.
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Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
Tang Capital Management, LLC
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2.
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Check the Appropriate Box if a Member of a Group
(a) ¨
(b) ý
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3.
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SEC Use Only
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4.
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Source of Funds
WC
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5.
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Check If Disclosure of Legal Proceeding Is Required Pursuant to Items 2(d) or 2(e)
¨
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6.
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Citizenship or Place of Organization
Delaware
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Number of
Shares Beneficially
Owned by
Each Reporting
Person With
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7.
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Sole Voting Power
0
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8.
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Shared Voting Power
81,713,600
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9.
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Sole Dispositive Power
0
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10.
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Shared Dispositive Power
81,713,600
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11.
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Aggregate Amount Beneficially Owned by Each Reporting Person
81,713,600
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12.
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Check if the Aggregate Amount in Row (11) Excludes Certain Shares ¨
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13.
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Percent of Class Represented by Amount in Row (11)
17.7%
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14
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Type of Reporting Person
OO
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Page 3 of 8
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CUSIP NO. 00202J203
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13D/A
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Page 4 of 10 |
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1.
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Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
Kevin C. Tang
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2.
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Check the Appropriate Box if a Member of a Group
(a) ¨
(b) ý
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3.
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SEC Use Only
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4.
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Source of Funds
PF, WC, OO
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5.
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Check If Disclosure of Legal Proceeding Is Required Pursuant to Items 2(d) or 2(e)
¨
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6.
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Citizenship or Place of Organization
United States
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Number of
Shares Beneficially
Owned by
Each Reporting
Person With
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7.
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Sole Voting Power
0
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8.
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Shared Voting Power
89,079,785
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9.
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Sole Dispositive Power
0
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10.
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Shared Dispositive Power
89,079,785
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11.
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Aggregate Amount Beneficially Owned by Each Reporting Person
89,079,785
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12.
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Check if the Aggregate Amount in Row (11) Excludes Certain Shares ¨
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13.
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Percent of Class Represented by Amount in Row (11)
19.3%
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14
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Type of Reporting Person
IN
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Page 4 of 8
Explanatory Note: This Amendment No. 12 relates to and amends the Statement of Beneficial Ownership on Schedule 13D/A (“Schedule 13D/A”) of Tang Capital Partners, LP, a Delaware partnership, Tang Capital Management, LLC, a Delaware limited liability company, and Kevin C. Tang, a United States citizen (each, a “Reporting Person” and collectively, the “Reporting Persons”), initially filed jointly by the Reporting Persons with the Securities and Exchange Commission on October 14, 2008 and amended on November 10, 2008, November 24, 2008, December 29, 2008, February 18, 2009, October 26, 2009, June 3, 2010, May 3, 2011, July 7, 2011, May 11, 2012, July 30, 2012 and May 9, 2013 (the “Statement”), with respect to the Common Stock, $0.01 par value (the “Common Stock”), of A.P. Pharma, Inc., a Delaware corporation (the “Issuer” or “Company”).
Items 3 and 5 of the Statement are hereby amended to the extent hereinafter expressly set forth. All capitalized terms used and not expressly defined herein have the respective meanings ascribed to such terms in the Statement.
Item 3. Source and Amount of Funds or Other Consideration
Item 3 of the Statement is hereby amended to add the following:
Since the date of the last amendment to this Schedule 13D/A, on November 20, 2013, Tang Capital Partners, LP purchased 17,500,000 shares of the Issuer’s Common Stock through an underwritten offering at $0.40 per share.
Since the date of the last amendment to this Schedule 13D/A, Tang Capital Partners, LP received $58,620 and $59,500 principal amount of the Issuer’s Senior Secured Convertible Notes due 2021 (the “Notes”) on July 1, 2013 and October 1, 2013, respectively, as interest paid in-kind on the existing Notes held by Tang Capital Partners, LP.
Tang Capital Partners, LP holds some of its shares in commingled margin accounts, which may extend margin credit to Tang Capital Partners, LP as and when required to open or carry positions in the margin accounts, subject to applicable federal margin regulations, stock exchange rules and credit policies. In such instances, the positions held in the margin accounts are pledged as collateral security for the repayment of debit balances in these accounts. The margin accounts may from time to time have debit balances. Since other securities are held in the margin accounts, it is not possible to determine the amounts, if any, of margin used to purchase the Notes reported herein.
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Item 5.
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Interest in Securities of the Issuer
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Item 5 of the Statement is hereby amended and restated in its entirety as follows:
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(a)
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Amount beneficially owned and percentage of class:
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Tang Capital Partners, LP
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81,713,600 shares, representing 17.7% of the class
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Tang Capital Management, LLC
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81,713,600 shares, representing 17.7% of the class
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Kevin C. Tang
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89,079,785 shares, representing 19.3% of the class
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Tang Capital Partners, LP is the beneficial owner of 81,713,600 shares of the Issuer’s Common Stock, including 18,750,000 shares of the Issuer’s Common Stock held by Tang Holdings. Tang Capital Partners, LP shares voting and dispositive power over such shares with Tang Capital Management, LLC and Kevin C. Tang.
Tang Capital Partners, LP is the record owner of $4,026,124 principal amount of Notes, which may be converted into the Issuer’s Common Stock at a conversion rate of 25,000 shares per $1,000 principal amount of Notes, subject to certain limitations discussed below.
Tang Capital Partners, LP has no right to convert the Notes to the extent that after giving effect to such conversion Tang Capital Partners, LP (together with its affiliates) would beneficially own in excess of the Maximum Percentage, or 9.99%, of the number of shares of Common Stock of the Company outstanding immediately after giving effect to such conversion. Tang Capital Partners, LP can increase or decrease the Maximum Percentage for its Notes by written notice to the Company, provided that such increase or decrease will not be effective until 61 days after delivery of the notice. The foregoing limitation remains in effect with respect to such Notes and no shares are currently issuable upon conversion of such Notes. Neither the filing of this Schedule 13D/A nor any of its contents shall be deemed to constitute an admission by Tang Capital Partners, LP or any other person that is the beneficial owner of any of the Common Stock underlying such Notes for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, or for any other purpose, and as such beneficial ownership is expressly disclaimed.
Page 5 of 8
Tang Capital Partners, LP is the record owner of a warrant to purchase up to 25,000,000 shares of Common Stock at an exercise price of $0.18 per share (the “2016 Warrant”). The 2016 Warrant is exercisable anytime until its expiration on July 1, 2016, subject to certain limitations discussed below.
There is no right to exercise the aforementioned 2016 Warrant to the extent that after giving effect to such exercise the Tang Capital Partners, LP and its affiliates would beneficially own in excess of 9.99% of the outstanding shares of Common Stock following such exercise. Tang Capital Partners, LP can amend or waive the foregoing limitation by written notice to the Company, with such waiver taking effect only upon the expiration of a 61-day notice period. The foregoing limitation remains in effect with respect to such 2016 Warrant and no shares are currently issuable upon exercise of such 2016 Warrant. Neither the filing of this Schedule 13D/A nor any of its contents shall be deemed to constitute an admission by Tang Capital Partners, LP or any other person that is the beneficial owner of any of the Common Stock underlying such 2016 Warrant for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, or for any other purpose, and as such beneficial ownership is expressly disclaimed.
Tang Capital Partners, LP is the record owner of a warrant to purchase up to 1,221,590 shares of Common Stock at an exercise price of $0.88 per share (the “2015 Warrant”). The 2015 Warrant is exercisable anytime until its expiration on January 7, 2015, subject to certain limitations discussed below.
The 2015 Warrant provides that in no event shall the 2015 Warrant be exercisable to the extent that the issuance of Common Stock upon exercise thereof, after taking into account the Common Stock then owned by Tang Capital Partners, LP and its affiliates, would result in the beneficial ownership by Tang Capital Partners, LP and its affiliates of more than 9.999% of the outstanding Common Stock (“Limitation on Exercise”). The Limitation on Exercise remains in effect with respect to such 2015 Warrant and no shares are currently issuable upon exercise of such 2015 Warrant. Neither the filing of this Schedule 13D/A nor any of its contents shall be deemed to constitute an admission by Tang Capital Partners, LP or any other person that is the beneficial owner of any of the Common Stock underlying such 2015 Warrant for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, or for any other purpose, and as such beneficial ownership is expressly disclaimed.
Tang Capital Management, LLC, as the general partner of Tang Capital Partners, LP, may be deemed to beneficially own the 81,713,600 shares beneficially owned by Tang Capital Partners, LP. Tang Capital Management, LLC shares voting and dispositive power over such shares with Tang Capital Partners, LP and Kevin C. Tang.
Kevin C. Tang is the beneficial owner of 89,079,785 shares of the Issuer’s Common Stock, comprising 62,600 shares owned by Justin L. Tang under the Uniform Transfers to Minors Act (“UTMA”), for which Kevin C. Tang serves as trustee, 53,700 shares owned by Julian K. Tang under the UTMA, for which Kevin C. Tang serves as trustee, 15,200 shares owned by Noa Y. Tang under the UTMA, for which Kevin C. Tang serves as trustee, 40,800 shares owned by the Tang Advisors, LLC Profit Sharing Plan, for which Kevin C. Tang serves as trustee and is a participant, 114,650 shares held by the Kevin C. Tang Family Trust, for which Kevin C. Tang serves as trustee, 42,950 shares owned by Kevin C. Tang’s Individual Retirement Account, 95,891 shares owned directly by Kevin C. Tang, 900,000 shares issuable upon exercise of options held by Kevin C. Tang, 6,040,394 shares owned by the Kevin C. Tang Foundation, Inc. and the 81,713,600 shares beneficially owned by Tang Capital Partners, LP.
Justin L. Tang, Julian K. Tang and Noa Y. Tang are Kevin C. Tang’s children. The Kevin C. Tang Foundation, Inc. is a private foundation, for which Kevin C. Tang serves as Chairman and President. Kevin C. Tang is a beneficiary and the sole trustee of the Kevin C. Tang Family Trust and has voting and dispositive power over the shares held by the Kevin C. Tang Family Trust. The Kevin C. Tang Foundation, Inc. is a not-for-profit corporation incorporated in the state of Delaware. Kevin C. Tang has voting and dispositive power over the shares held by this foundation. Tang Capital Management, LLC, as the general partner of Tang Capital Partners, LP, and Kevin C. Tang, as the manager of Tang Capital Management, LLC, may also be deemed to beneficially own the shares beneficially owned by Tang Capital Partners, LP. The mailing address of all of the foregoing persons and entities is c/o Tang Capital Management, LLC, 4747 Executive Drive, Suite 510, San Diego, CA 92121. Kevin C. Tang disclaims beneficial ownership of all shares reported herein except to the extent of his pecuniary interest therein.
Page 6 of 8
The percentages used herein for Tang Capital Partners, LP and Tang Capital Management, LLC are based upon 460,866,622 shares of Common Stock outstanding, as set forth in the Issuer’s Prospectus Supplement on Form 424B5, which was filed with the United States Securities and Exchange Commission on November 21, 2013. The percentages used herein for Kevin C. Tang are based upon 461,766,662 shares of the Issuer’s Common Stock outstanding (460,866,622 shares of Common Stock outstanding as described in the foregoing sentence, plus an additional 900,000 shares of Common Stock issuable upon exercise of options granted to Kevin C. Tang).
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(b)
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Voting and disposition powers:
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Sole power to vote or direct the vote:
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Tang Capital Partners, LP
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0 shares
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Tang Capital Management, LLC
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0 shares
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Kevin C. Tang
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7,366,185 shares
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Shared power to vote or direct the vote:
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Tang Capital Partners, LP
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81,713,600 shares
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Tang Capital Management, LLC
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81,713,600 shares
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Kevin C. Tang
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81,713,600 shares
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Sole power to dispose or direct the disposition:
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Tang Capital Partners, LP
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0 shares
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Tang Capital Management, LLC
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0 shares
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Kevin C. Tang
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7,366,185 shares
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Shared power to dispose or direct the disposition:
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Tang Capital Partners, LP
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81,713,600 shares
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Tang Capital Management, LLC
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81,713,600 shares
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Kevin C. Tang
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81,713,600 shares
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(c) Other than the transactions described in Item 3, none of the Reporting Persons have effected any transaction in the Issuer’s common stock within the last 60 days.
(d) N/A.
(e) N/A.
Page 7 of 8
SIGNATURES
After reasonable inquiry and to the best of his or its knowledge and belief, each of the following Reporting Persons certifies that the information set forth in this statement is true, complete and correct.
November 22, 2013
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Tang Capital Partners, LP
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By:
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Tang Capital Management, LLC
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By:
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/s/ Kevin C. Tang
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Kevin C. Tang, Manager
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Tang Capital Management, LLC
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By:
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/s/ Kevin C. Tang
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Kevin C. Tang, Manager
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/s/ Kevin C. Tang
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Page 8 of 8