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SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 3)*
Ascendia Brands, Inc.
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(Name of Company)
Common Stock, par value $0.001 per share
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(Title of Class of Securities)
15670X104
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(CUSIP Number of Class of Securities)
Mathew Hoffman, Esq. Eleazer Klein, Esq.
Prentice Capital Management, LP Schulte Roth & Zabel LLP
623 Fifth Avenue, 32nd Floor 919 Third Avenue
New York, NY 10022 New York, NY 10022
(212) 756-8040 (212) 756-2376
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(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
December 27, 2006
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(Date of Event which Requires
Filing of this Schedule)
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 ss.ss.240.13d-1(e), 240.13d-1(f) or 240.13d-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 ss.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).
SCHEDULE 13D
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CUSIP NO. 15670X104 PAGE 2 OF 6 PAGES
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Prentice Capital Management, LP
73-1728931
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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 Item 3)
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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7 SOLE VOTING POWER
0
----------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 1,174,911
OWNED BY ---------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH 0
----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,174,911
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
1,174,911
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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) (see Item 5)
9.99%
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14 TYPE OF REPORTING PERSON*
PN
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SCHEDULE 13D
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CUSIP NO. 15670X104 PAGE 3 OF 6 PAGES
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Michael Zimmerman
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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 Item 3)
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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7 SOLE VOTING POWER
0
----------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 1,174,911
OWNED BY ----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH 0
----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,174,911
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
1,174,911
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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) (see Item 5)
9.99%
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14 TYPE OF REPORTING PERSON*
IN
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SCHEDULE 13D
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CUSIP NO. 15670X104 PAGE 4 OF 6 PAGES
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AMENDMENT NO. 3 TO SCHEDULE 13D
Reference is made to the Statement on Schedule 13D filed on July 10, 2006,
as amended on August 7, 2006 and November 17, 2006 (the "Schedule 13D"), on
behalf of Prentice Capital Management, LP ("Prentice Capital Management") and
Michael Zimmerman ("Mr. Zimmerman" and, together with Prentice Capital
Management, the "Reporting Persons"), relating to the Common Stock, par value
$0.001 per share, of Ascendia Brands, Inc., a Delaware corporation (the
"Company"). Unless the context otherwise requires, references herein to the
"Shares" are to the Common Stock of the Company. Capitalized terms used herein
and not otherwise defined have the meanings given to them in the Schedule 13D.
The Reporting Persons are making this single, joint filing because they may
be deemed to constitute a "group" within the meaning of Section 13(d)(3) of the
Act. Each of Prentice Capital Management and Mr. Zimmerman disclaims beneficial
ownership of all of the Shares reported in this Schedule 13D.
ITEM 4. PURPOSE OF TRANSACTION
Item 4 of the Schedule 13D is hereby amended to include the following:
Pursuant to an Amendment and Exchange Agreement dated as of December 27,
2006, as amended by Amendment No.1 dated as of December 29, 2006 (the "Exchange
Agreement"), the Company and the Prentice Parties agreed to, among other things,
exchange 2,200,000 Shares of Common Stock into 300 shares of Series B Preferred
Stock and 30 shares of Series B-1 Preferred Stock (collectively, the "Preferred
Shares"). The Exchange Agreement and Amendment No. 1 are attached hereto as
Exhibits H and I.
Each Preferred Share is convertible into 6,666 and 2/3 Shares of Common
Stock of the Company, subject to standard anti-dilution provisions. The
Preferred Shares have certain other rights set forth in their respective
Certificate of Designations.
Other than in connection with a Fundamental Transaction (as defined in the
applicable Certificate of Designation), the Company is not permitted to effect
any conversion of Preferred Shares, and no holder shall have the right to
convert any Preferred Shares, to the extent that after giving effect to such
conversion, a holder (together with its affiliates) would beneficially own in
excess of 9.99% of the number of shares of common stock outstanding immediately
after giving effect to such conversion (the "Blocker").
SCHEDULE 13D
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CUSIP NO. 15670X104 PAGE 5 OF 6 PAGES
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ITEM 5. PURPOSE OF TRANSACTION
Item 5 of the Schedule 13D is amended and restated as follows:
(a) Prentice Capital Management may be deemed to beneficially own, in the
aggregate, 1,174,911 Shares, representing 9.99% of the Company's outstanding
Shares (based on 11,713,056 Shares outstanding as provided by the Company). Mr.
Zimmerman may be deemed to beneficially own, in the aggregate, 1,174,911 Shares
representing approximately 9.99% of the Company's outstanding Shares. If the
Blocker were not in place, as of the date hereof each of Prentice Capital
Management and Mr. Zimmerman may be deemed to beneficially own, in the
aggregate, 3,322,482 Shares (representing 300 shares of Series B Preferred Stock
that are initially convertible into 2,000,000 Shares, 30 shares of Series B-1
Preferred Stock that are initially convertible into 200,000 Shares and 1,122,482
Shares).
(b) Prentice Capital Management and Michael Zimmerman have shared voting
power with respect to 1,174,911 Shares.
(c) Except as described herein, during the last sixty days there were no
transactions in the Common Stock effected by the Reporting Persons.
(d) The limited partners or shareholders of the private investment funds
and the entities for which Prentice Capital Management and Mr. Zimmerman manages
investments in managed accounts have the right to participate indirectly in the
receipt of dividends from, or proceeds from the sale of, the Shares in
accordance with their respective ownership interests in their respective funds.
(e) Not applicable.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH
RESPECT TO SECURITIES OF THE COMPANY.
Item 6 of the Schedule 13D is hereby amended to include the following:
As described in Item 4 above, the Prentice Parties agreed to exchange
Shares into Series B Preferred Stock and Series B-1 Preferred Stock pursuant to
the Exchange Agreement.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
Item 7 of the Schedule 13D is hereby amended to include the following:
Exhibit H - The Amendment and Exchange Agreement dated as of December 27, 2006,
by and among the Company and the Prentice Parties.
Exhibit I - Amendment No. 1 to Amendment and Exchange Agreement dated as of
December 29, 2006, by and among the Company and the Prentice Parties.
SCHEDULE 13D
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CUSIP NO. 15670X104 PAGE 6 OF 6 PAGES
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SIGNATURES
After reasonable inquiry and to the best of his knowledge and belief, each
of the undersigned certifies that the information set forth in this statement is
true, complete and correct.
Dated: December 29, 2006
PRENTICE CAPITAL MANAGEMENT, LP
By: /s/ Michael Weiss
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Name: Michael Weiss
Title: Chief Financial Officer
MICHAEL ZIMMERMAN
/s/ Michael Zimmerman
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Michael Zimmerman