SEC Form 4 · accession 0000899243-17-013023
FTE Networks, Inc. · FTNW
Statement of changes in beneficial ownership, as filed. Original on EDGAR ↗
Reporting owners
Richard de Silva
10% Owner
Lateral Global Investors LLC
10% Owner
Lateral Credit Opportunities, LLC
10% Owner
Lateral FTE Feeder LLC
10% Owner
Kenneth M. Masters
10% Owner
Period of report
Sep 30, 2016
Accepted (ET)
May 12, 2017 · 9:39 pm EDT
Rule 10b5-1 plan
unknown — predates the checkbox
Issuer CIK
0001122063
Table I — non-derivative securities
| Security | Date | Code | Shares | Price | A/D | Owned after | D/I | Nature of ownership |
|---|---|---|---|---|---|---|---|---|
| Common StockF1,F2,F3,F4,F5,F6 | Mar 3, 2017 | J | 6,420,020 | — | A | 26,120,650 | I | See Footnote |
| Common StockF1,F2,F3,F4,F5,F6 | Apr 7, 2017 | J | 1,978,068 | — | A | 31,848,718 | I | See Footnote |
| Common StockF1,F2,F6 | May 8, 2017 | J | 26,215,409 | — | A | 58,064,127 | I | See Footnote |
Table II — derivative securities
| Security | Conv. / exercise price | Date | Code | Shares | A/D | Exercisable | Expires | Underlying | Underlying shares | Owned after | D/I |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Warrant (right to buy)F1,F2,F3,F4,F5 | $0.80 | Sep 30, 2016 | J | 2,343,750 | A | — | — | Common Stock | 2,343,750 | 13,450,630 | I |
| Warrant (right to buy)F1,F2,F3,F4,F5 | $0.40 | Nov 11, 2016 | J | 2,500,000 | A | — | — | Common Stock | 2,500,000 | 15,950,630 | I |
| Warrant (right to buy)F1,F2,F3,F4,F5 | $0.40 | Dec 23, 2016 | J | 3,750,000 | A | — | — | Common Stock | 3,750,000 | 19,700,630 | I |
| Warrant (right to buy)F1,F2,F3,F4,F5 | $0.40 | Mar 29, 2017 | J | 3,750,000 | A | — | — | Common Stock | 2,343,750 | 29,870,650 | I |
Explanation of responses
- F1On September 30, 2016, the reporting persons named herein (the "Reporting Persons") beneficially acquired warrants to purchase 2,343,750 shares of the Issuer's Common Stock and as a result became the beneficial owner in the aggregate of 13,450,630 shares of the Issuer's Common Stock. On November 11, 2016, the Reporting Persons beneficially acquired warrants to purchase 2,500,000 shares of the Issuer's Common Stock and as a result became the beneficial owner in the aggregate of 15,950,630 shares of the Issuer's Common Stock. On December 23, 2016, the Reporting Persons beneficially acquired warrants to purchase 3,750,000 shares of the Issuer's Common Stock and became the beneficial owner in the aggregate of 19,700,630 shares of the Issuer's Common Stock. On March 3, 2017, the Reporting Persons beneficially acquired 6,420,020 shares of the Issuer's Common Stock and became the beneficial owner in the aggregate of 26,120,650 shares of the Issuer's Common Stock.
- F2(Continued from Footnote 1) On March 29, 2017, the Reporting Persons beneficially acquired warrants to purchase 3,750,000 shares of the Issuer's Common Stock and as a result became the beneficial owner in the aggregate of 29,870,650 shares of the Issuer's Common Stock. On April 7, 2017, the Reporting Persons beneficially acquired 1,978,068 shares of the Issuer's Common Stock and became the beneficial owner in the aggregate of 31,848,718 shares of the Issuer's Common Stock. On May 8, 2017, the Reporting Persons beneficially acquired 26,215,409 shares of the Issuer's Common Stock and as a result became the beneficial owner in the aggregate of 58,064,127 shares of the Issuer's Common Stock.
- F3Following the transactions described in Footnote 1, Lateral FTE Feeder LLC, Lateral Investment Management, LLC and Lateral U.S. Credit Opportunities Fund, L.P. are the record holder of a portion of the shares of Common Stock of the Issuer. Lateral Investment Management, LLC is the sole manager of Lateral FTE Feeder LLC, and Kenneth Masters and Dhamitha Richard de Silva are the sole managers of Lateral Investment Management, LLC. As a result of the foregoing relationships, each of Lateral Investment Management, LLC, Kenneth Masters and Dhamitha Richard de Silva may be deemed to beneficially own the shares of Common Stock held by Lateral FTE Feeder LLC.
- F4(Continued from Footnote 3) Lateral Global Investors, LLC has a management agreement with Lateral U.S. Credit Opportunities Fund, L.P.; Lateral Credit Opportunities, LLC is the sole general partner of Lateral U.S. Credit Opportunities Fund, L.P.; and Kenneth Masters and Dhamitha Richard de Silva are the sole managers of Lateral Credit Opportunities, LLC. As a result of the foregoing relationships, each of Lateral Investment Management, LLC; Lateral Credit Opportunities, LLC; Kenneth Masters and Dhamitha Richard de Silva may be deemed to beneficially own the shares of Common Stock held by Lateral U.S. Credit Opportunities Fund, L.P.
- F5Lateral Investment Management, LLC is the sole manager of Lateral FTE Feeder LLC and has a management agreement with Lateral U.S. Credit Opportunities Fund, L.P. Lateral Credit Opportunities, LLC is the sole general partner of Lateral U.S. Credit Opportunities Fund, L.P. Kenneth Masters and Dhamitha Richard de Silva are the sole managers of Lateral Investment Management, LLC and Lateral Credit Opportunities, LLC.
- F6Held by Lateral FTE Feeder LLC, Lateral Investment Management, LLC and Lateral U.S. Credit Opportunities Fund, L.P.
Remarks
The Reporting Persons filing this Form 4 jointly are the following: Lateral Investment Management, LLC; Lateral FTE Feeder LLC; Lateral U.S. Credit Opportunities Fund, L.P.; Lateral Credit Opportunities, LLC; Kenneth Masters; and Dhamitha Richard de Silva. The address of each of the Reporting Persons is 1825 South Grant Street, Suite 210, San Mateo, CA 94402-2672.