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SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 7)*
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)
November 18, 2007
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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 7 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
--------- ---------------------------------------------------------------------
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 4,512,482
OWNED BY ------- ----------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH 0
------- ----------------------------------------------------
10 SHARED DISPOSITIVE POWER
4,512,482
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
4,512,482
--------- ---------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
--------- ---------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) (see Item 5)
9.99%
--------- ---------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
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SCHEDULE 13D
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CUSIP NO. 15670X104 PAGE 3 OF 7 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
--------- ----------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC (See Item 3)
--------- ----------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
--------- ----------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
------- -----------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 4,512,482
OWNED BY ------- -----------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH 0
------- -----------------------------------------------------
10 SHARED DISPOSITIVE POWER
4,512,482
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
4,512,482
--------- ----------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
--------- ----------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) (see Item 5)
9.99%
--------- ----------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
--------- ----------------------------------------------------------------------
SCHEDULE 13D
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CUSIP NO. 15670X104 PAGE 4 OF 7 PAGES
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AMENDMENT NO.7 TO SCHEDULE 13D
Reference is made to the Statement on Schedule 13D filed on July 10, 2006,
as amended on August 7, 2006, November 17, 2006, December 29, 2006, January 5,
2007, February 13, 2007 and October 25, 2007 (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:
On November 19, 2007 (the "Issuance Date"), Prencen Lending LLC ("Prencen
Lending"), an entity for which Prentice Capital Management serves as manager and
the members of which are investment funds and managed accounts managed by
Prentice Capital Management, entered into a letter agreement (the "Letter
Agreement") with the Company. Pursuant to the Letter Agreement, Prencen Lending
loaned the Company $2,000,000. In consideration for the loan, the Company issued
to Prencen Lending (i) an unsecured convertible note (the "Note") in the
principal amount of $2,000,000 and (ii) a Series A Warrant (the "Warrant")
exercisable into 3,000,000 Shares.
The Note will mature on the earlier to occur of (i) the 180th day following
the Issuance Date and (ii) the consummation of the Preferred Stock Financing (as
defined in the Note). On the maturity date, the Company shall pay the principal
and accrued but unpaid interest then due and owing under the Note in (i) shares
of Preferred Stock (as defined in the Note) if the Preferred Stock Financing is
consummated on or prior to the 180th day following the Issuance Date; or (ii)
shares of Common Stock valued at 85% of the average Weighted Average Price (as
defined in the Note) for the 10 trading days immediately preceding the 180th day
following the Issuance Date if the Preferred Stock Financing has not been
consummated on or prior to the 180th day following the Issuance Date. The Note
bears an interest rate of 15.0% per annum, subject to an increase up to the
lesser of 20% per annum or the maximum rate permitted by applicable law upon the
occurrence of specified events. Any balance under the Note is convertible at any
time, at the option of the holder, into Future Round Financing Equity issued in
any Future Round Financing (each as defined in the Note).
SCHEDULE 13D
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CUSIP NO. 15670X104 PAGE 5 OF 7 PAGES
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Interest is payable by capitalizing such interest and adding it to the then
outstanding principal of the Note.
Subject to the limitations described below, the Warrant entitles the holder
to purchase 3,000,000 Shares from the Company at an exercise price of $0.26 per
share at any time or times on or after the Issuance Date, but not after 11:59
p.m., New York Time, on the date 60 months after the Issuance Date.
THE HOLDER OF THE WARRANT SHALL NOT HAVE THE RIGHT TO EXERCISE THE WARRANT,
TO THE EXTENT THAT AFTER GIVING EFFECT TO SUCH EXERCISE, SUCH PERSON (TOGETHER
WITH SUCH PERSON'S AFFILIATES) WOULD BENEFICIALLY OWN IN EXCESS OF 9.99% OF THE
SHARES OF COMMON STOCK OUTSTANDING IMMEDIATELY AFTER GIVING EFFECT TO SUCH
EXERCISE.
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, 4,512,482 Shares, representing 9.99% of the Company's outstanding
Shares (based upon 41,779,840 Shares outstanding as reported in the Company's
Quarterly Report on Form 10-Q for the fiscal quarter ending May 26, 2007 filed
on July 24, 2007 and the amount of convertible securities beneficially owned by
the Reporting Persons). Mr. Zimmerman may be deemed to beneficially own, in the
aggregate, 4,512,482 Shares representing approximately 9.99% of the Company's
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, 333,676,526 Shares (representing 300 shares of Series B
Preferred Stock that are initially convertible into 2,000,000 Shares, 30 shares
of Series B1 Preferred Stock that are initially convertible into 200,000 Shares,
warrants to purchase 10,384,615 Shares at an exercise price of $0.26 per share,
warrants to purchase 24,661,737 Shares at an exercise price of $0.26 per share,
warrants to purchase 3,000,000 Shares at an exercise price of $0.26 per share, a
Convertible Note in the initial aggregate principal amount of $76 million which
initial aggregate principal amount is convertible into 292,307,692 Shares
(without taking into account any capitalized interest) and 1,122,482 Shares).
(b) Prentice Capital Management and Michael Zimmerman have shared voting
power with respect to 4,512,482 Shares.
(c) Except as described herein, during the last sixty days there were no
transactions in the Common Stock effected by the Reporting Persons.
SCHEDULE 13D
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CUSIP NO. 15670X104 PAGE 6 OF 7 PAGES
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(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.
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, Prencen Lending entered into the Letter
Agreement and received the Note and Warrant.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
Item 7 of the Schedule 13D is hereby amended to include the following:
Exhibit P - Letter Agreement dated as of November 19, 2007, by and among the
Company and Prencen Lending.
Exhibit Q - Convertible Note issued by the Company.
Exhibit R - The Series A Warrant to Purchase Common Stock issued by the Company.
SCHEDULE 13D
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CUSIP NO. 15670X104 PAGE 7 OF 7 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: November 21, 2007
PRENTICE CAPITAL MANAGEMENT, LP
By: /s/ Michael Weiss
-------------------------------
Name: Michael Weiss
Title: Chief Financial Officer
MICHAEL ZIMMERMAN
/s/ Michael Zimmerman
-----------------------------------
Michael Zimmerman