SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
SCHEDULE 13D
(Rule 13d-101)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
TO RULE 13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO
RULE 13d-2(a)
(Amendment No. 2)1
INNOVO GROUP INC.
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(Name of Issuer)
COMMON STOCK, PAR VALUE $.10 PER SHARE
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(Title of Class of Securities)
457954 50 1
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(CUSIP Number)
Seymour Braun
Braun & Goldberg
110 East 59th Street, Suite 3201
New York, New York 10022
(212) 750-0040
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
February 21, 2003
(Date of Event Which Requires Filing of This Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following box
|_|.
Note. Schedules filed in paper format shall include a signed original
and five copies of the schedule, including all exhibits. See Rule 13d-7(b) for
other parties to whom copies are to be sent.
(Continued on following pages)
(Page 1 of 7 Pages)
1The 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 be
deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 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)
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CUSIP No. 457954 50 1 13D Page 2 of 7 Pages
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1 NAME OF REPORTING PERSONS Yardworth Mortgage Corporation
A.V.V.
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS N/A
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |X|
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3 SEC USE ONLY
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4 SOURCE OF FUNDS* WC
(see response to Item 3)
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e)
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Aruba
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7 SOLE VOTING POWER
NUMBER OF SHARES 1. 1,812,500 shares of common stock
2. 1,400,000 warrants to purchase shares
of common stock (see response to Item
5).
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BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY
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EACH 9 SOLE DISPOSITIVE POWER
REPORTING 1. 1,812,500 shares of common stock
2. 1,400,000 warrants to purchase shares
of common stock (see response to Item 5).
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PERSON WITH 10 SHARED DISPOSITIVE POWER
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,212,500 (see response to Item 5).
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN
SHARES*
|_|
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
17.6% (see response to Item 5).
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14 TYPE OF REPORTING PERSON*
CO
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CUSIP No. 457954 50 1 13D Page 3 of 7 Pages
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1 NAME OF REPORTING PERSONS Praha Trust
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS N/A
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |X|
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3 SEC USE ONLY
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4 SOURCE OF FUNDS* Not applicable (see response to Item 3)
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e)
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Canada
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7 SOLE VOTING POWER
NUMBER OF SHARES 1. 1,812,500 shares of common stock
2. 1,400,000 warrants to purchase shares
of common stock (see response to Item
5).
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BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY
----- ---------------------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 1. 1,812,500 shares of common stock
2. 1,400,000 warrants to purchase shares
of common stock (see response to Item 5).
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PERSON WITH 10 SHARED DISPOSITIVE POWER
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,212,500 (see response to Item 5).
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN
SHARES*
|_|
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
17.6% (see response to Item 5).
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14 TYPE OF REPORTING PERSON*
CO
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CUSIP No. 457954 50 1 13D Page 4 of 7 Pages
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1 NAME OF REPORTING PERSONS Seymour Braun
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS 072-66-8180
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |X|
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3 SEC USE ONLY
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4 SOURCE OF FUNDS* Not applicable
(see response to Item 3)
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e)
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Canadian citizen
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7 SOLE VOTING POWER
NUMBER OF SHARES 1. 1,812,500 shares of common stock
2. 1,400,000 warrants to purchase shares
of common stock (see response to Item
5).
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BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY
----- ---------------------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 1. 1,812,500 shares of common stock
2. 1,400,000 warrants to purchase shares
of common stock (see response to Item 5).
----- ---------------------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
----- ---------------------------------------------------------------------------------------------
--------- -----------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,212,500 (see response to Item 5).
--------- -----------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN
SHARES*
|_|
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
17.6% (see response to Item 5).
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14 TYPE OF REPORTING PERSON*
IN
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Page 5 of 7
Item 1. Security and Issuer.
This statement relates to shares of the common stock, par value $.10
per share (the "Common Stock"), of Innovo Group Inc., a Delaware Corporation
(the "Company"). The Company has its principal executive offices at 2633
Kingston Pike, Suite 100, Knoxville, Tennessee 37919.
Item 2. Identity and Background.
This statement is being filed by:
1. Yardworth Mortgage Corp. ("Yardworth") is a corporation organized under the
laws of Aruba. The address of Yardworth is 105 Penstraat, Curacao, Netherlands
Antilles.
During the past five years, Yardworth has not been (a) convicted in a
criminal proceeding (excluding traffic violations or similar misdemeanors), or
(b) been a party to a civil proceeding of a judicial or administrative body of
competent jurisdiction and as a result thereof was or is subject to a judgment,
decree or final order enjoining future violations of, or prohibiting or
mandating activities subject to, federal or state securities laws or finding any
violation with respect to such laws.
2. Praha Trust ("Praha") is a trust organized under the laws of Canada. Praha is
the beneficial owner of Yardworth. The address of Praha is 105 Penstraat,
Curacao, Netherlands Antilles.
During the past five years, Praha has not been (a) convicted in a
criminal proceeding (excluding traffic violations or similar misdemeanors), or
(b) been a party to a civil proceeding of a judicial or administrative body of
competent jurisdiction and as a result thereof was or is subject to a judgment,
decree or final order enjoining future violations of, or prohibiting or
mandating activities subject to, federal or state securities laws or finding any
violation with respect to such laws.
3. Mr. Seymour Braun ("Braun"). Braun is the sole trustee of Praha. Braun's
principal occupation is an attorney. Braun is a member of the firm Braun &
Goldberg. Braun's business address is 110 East 59th Street, Suite 3201, New
York, New York 10022.
During the past five years, Braun has not been (a) convicted in a
criminal proceeding (excluding traffic violations or similar misdemeanors), or
(b) been a party to a civil proceeding of a judicial or administrative body of
competent jurisdiction and as a result thereof was or is subject to a judgment,
decree or final order enjoining future violations of, or prohibiting or
mandating activities subject to, federal or state securities laws or finding any
violation with respect to such laws. Braun is a Canadian citizen.
Braun, Praha and Yardworth are sometimes referred to collectively
herein as the "Reporting Parties."
Item 3. Source and Amount of Funds or Other Consideration.
The funds used by Yardworth to acquire the shares of the Company's
Common Stock were taken from the working capital funds of Yardworth.
Item 4. Purpose of Transaction.
On or about November 1, 2000, Yardworth entered into a note and pledge
agreement whereby Yardworth loaned Joseph Mizrachi $1,500,000. As evidence of
the loan, Joseph Mizrachi gave Yardworth a convertible note (the "Note"). At any
time prior to the maturity or full pre-payment of the Note, Yardworth had the
right to convert the outstanding Note into an 85% membership interest in
Innavation, LLC, a Delaware limited liability company ("Innavation"), wholly
owned by Joseph Mizrachi. Innavation owns 1,812,500 shares of the Company and
1,400,000 warrants to purchase shares of the Company at an exercise price of
$2.00 per share, and
Yardworth's 85% membership interest in Innavation equals
1,540,625 shares of the Company, and 1,190,000 warrants to purchase shares of
the Company. On February 6, 2003, Yardworth provided written notice to Mizrachi
that it was converting the Note into the 85% membership interest in Innavation,
effective February 21, 2003. While Yardworth's 85% ownership interest in
Innavation equals 1,540,625 shares of the Company and 1,190,000 warrants to
purchase shares of the Company, as a result of Yardworth's majority interest in
Innavation, Yardworth has the right to vote all 3,212,500 shares owned by
Innavation.
Except as described above, Braun, Praha and Yardworth do not have any
present plans or proposals which relate to or would result in:
(a) The acquisition by any person of additional securities of the Issuer, or
the disposition of securities of the Issuer;
(b) An extraordinary corporate transaction, such as a merger, reorganization or
liquidation, involving the Issuer or any of its subsidiaries;
(c) A sale or transfer of a material amount of assets of the Issuer or any of
its subsidiaries;
(d) Any change in the present board of directors or management of the Issuer,
including any plans or proposals to change the number or term of directors
or to fill any existing vacancies on the board;
(e) Any material change in the present capitalization or dividend policy of the
Issuer; (f) Any other material change in the Issuer's business or corporate
structure;
(g) Changes in the Issuer's charter, by-laws or instruments corresponding
thereto or other actions which may impede the acquisition or control of the
Issuer by any person;
(h) Causing a class of securities of the Issuer to be delisted from a national
securities exchange or to cease to be authorized to be quoted in an
inter-dealer quotation system of a registered national securities
association;
(i) A class of equity security of the Issuer becoming eligible for termination
of registration pursuant to Section 12(g)(4) of the Securities Exchange Act
of 1934; or
(j) Any action similar to any of those enumerated above.
Item 5. Interest in Securities of the Issuer.
(a) As of September 2, 2003, the Reporting Parties are the beneficial owners of
3,212,500 shares of the Common Stock, or approximately 17.6% of the Company's
Common Stock, which includes 1,400,000 warrants to purchase 1,400,000 shares of
the Company's Common Stock at an exercise price of $2.00 per share. These
warrants are currently exercisable.
The percentage of outstanding shares of common stock set out above are
computed based on 18,260,339 shares of common stock outstanding as of September
2, 2003.
(b) Braun, as the sole trustee of Praha Trust, which beneficially owns
Yardworth, has the sole power to vote or direct the vote and dispose or direct
the disposition of 3,212,500 shares of the Common Stock, including 1,400,000
warrants to purchase 1,400,000 shares of the Common Stock.
(c) Except as set forth herein, none of the Reporting Parties have engaged in
any transactions in the Common Stock of the Company during the past sixty (60)
days.
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to
Securities of the Issuer.
None
Item 7. Material to be Filed as Exhibits.
None.
SIGNATURES
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
accurate.
September 17, 2003 /s/ Seymour Braun
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Seymour Braun
PRAHA TRUST
/s/ Seymour Braun
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Seymour Braun, Trustee
YARDWORTH MORTGAGE
CORPORATION A.V.V.
BY MIDO TRUST, MANAGING DIRECTOR
/s/ Minguelita M. Lourens
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By: Minguelita M. Lourens
The original statement shall be signed by each person on whose behalf the
statement is filed or his authorized representative. If the statement is signed
on behalf of a person by his authorized representative (other than an executive
officer or general partner of this filing person), evidence of the
representative's authority to sign on behalf of such person shall be filed with
the statements, provided, however, that a power of attorney for this purpose
which is already on file with the Commission may be incorporated by reference.
The name any title of each person who signs the statement shall be typed or
printed beneath his signature.
ATTENTION: INTENTIONAL MISSTATEMENTS OR OMISSIONS OF FACT CONSTITUTE FEDERAL
CRIMINAL VIOLATIONS (SEE 18 U.S.C. 1001).