SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
INFORMATION TO BE INCLUDED IN STATEMENTS FILED
TO RULE 13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT
(Amendment No. 1)1
(Name of Issuer)
Common Stock, par value $0.01 per share
(Title of Class of Securities)
DANIEL B. WOLFE
180 DEGREE CAPITAL CORP.
7 N. Willow Street, Suite 4B
Montclair, NJ 07042
ANDREW FREEDMAN, ESQ.
OLSHAN FROME WOLOSKY LLP
1325 Avenue of the Americas
New York, New York 10019
(Name, Address and Telephone Number of Person Authorized to Receive
Notices and Communications)
November 24, 2020
(Date of Event which Requires Filing of this
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 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 for other parties to whom copies are to be
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).
CUSIP No. 88339B102
NAME OF REPORTING PERSONS:
180 Degree Capital Corp.
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) ☒ (b)
SEC USE ONLY
SOURCE OF FUNDS (SEE INSTRUCTIONS)
CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEM 2(d) or 2(e)
CITIZENSHIP OR PLACE OF ORGANIZATION
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON
SOLE VOTING POWER
SHARED VOTING POWER
4,000,000 shares (1)(2)
SOLE DISPOSITIVE POWER
SHARED DISPOSITIVE POWER
4,000,000 shares (1)(2)
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,000,000 shares (1)(2)
CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
PERCENT OF CLASS REPRESENTED IN ROW (11)
TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
(1) The 4,000,000 shares of Common Stock reported herein are
issuable upon conversion of 1,320 shares of Series H Preferred
Stock at the election of the Reporting Person subject to a
beneficial ownership limitation of 4.99%.
The 4.99% beneficial ownership limitation can be increased up to
9.99% at the election of the Reporting Person by providing 61 days’
notice to the Issuer.
The Reporting Person has provided such notice and, accordingly, the
9.99% beneficial ownership limitation does not currently limit the
conversion of any of the Series H Preferred Stock held by the
(2) Excludes shares of Common Stock underlying shares of Series I
Preferred Stock and Series J Preferred Stock held by the Reporting
Person which are not currently convertible as further set forth in
(3) The percentage reported herein is based upon a denominator that
is the sum of (i) 40,355,654 shares of Common Stock outstanding as
of November 20, 2020, as set forth in the Issuer’s Definitive
Consent Statement on Form DEF 14A filed with the Securities and
Exchange Commission on November 24, 2020, and (ii) the number of
shares issuable upon conversion of Series H Preferred Stock within
60 days of this filing.
CUSIP No. 88339B102
The following constitutes Amendment No. 1 to the Schedule 13D filed
by the undersigned ("Amendment No. 1"). This Amendment No. 1 amends
the Schedule 13D as specifically set forth herein.
Purpose of the Transaction.
Item 4 is hereby amended to add the following:
On November 24, 2020, 180 Degree Capital Corp. and B. Riley
Financial, Inc. delivered a letter to the Board of Directors of the
Issuer (the "Board") requesting the resignation of five members of
the Board effective immediately: David Bailey, Chairman John A.
Fichthorn, Josh Jacobs, Peter B. Mills and Rinku Sen (the
A copy of the Letter is filed as Exhibit 99.1 to this Schedule 13D
and is incorporated by reference herein. As indicated in the
Letter, B. Riley Financial, Inc. and certain of its affiliates
(collectively, "B. Riley") and the Reporting Person, are prepared
to commence a consent solicitation to solicit consents from other
stockholders to remove those five members of the Board if they do
not resign. The Reporting Person and B. Riley have also had
discussions with the Issuer’s management, certain of those five
directors and the remaining members of the Board regarding proposed
individuals to be appointed or elected to the Board. The Reporting
Person together with B. Riley may be deemed to be a group (the
for the purposes of Section 13(d)(3) of the Securities Exchange Act
of 1934, as amended (the “Act”).
180 Degree Capital Corp. and B. Riley Financial, Inc., have entered
into a Group Agreement, dated as of November 25, 2020 (the
with respect to the removal of the directors as described in the
Letter. A copy of the Group Agreement is filed as Exhibit 99.2 to
this Schedule 13D and is incorporated by reference herein. Each
member of the Group will file a separate Schedule 13D or Schedule
13D amendment as required by the Securities Exchange Act of 1934,
and the rules and regulations promulgated thereunder, containing
the required information. No member of the Group assumes any
responsibility for the information contained in the Schedule 13D or
Schedule 13D amendment filed by any other member of the Group.
Additionally, in the event that the Group shall be deemed to be the
beneficial owner of all of the securities of the Issuer reported in
the Schedule 13Ds or Schedule 13D amendments filed by the members
of the Group, the Reporting Person shall not be deemed to be the
beneficial owner of the securities of the Issuer reported in the
Schedule 13D or Schedule 13D amendment filed by any other member of
the Group, and the Reporting Person expressly disclaims beneficial
ownership of any securities of the Issuer other than those reported
in this Schedule 13D.
Interest in the Securities of the Issuer
Items 5(a) - (c) are hereby amended and restated to read as
See rows (11) and (13) of the cover page to this Schedule 13D for
the aggregate number of shares of Common Stock and percentage of
the outstanding shares of Common Stock beneficially owned by the
The percentage reported therein is based upon a denominator that is
the sum of (i) 40,355,654 shares of Common Stock outstanding as of
November 20, 2020, as set forth in the Issuer’s Definitive Consent
Statement on Form DEF 14A filed with the Securities and Exchange
Commission on November 24, 2020, and (ii) the number of shares
issuable upon conversion of Series H Preferred Stock within 60 days
of this filing.
See rows (7) through (10) of the cover page to this Schedule 13D
for the number of shares of Common Stock as to which the Reporting
Person has the sole or shared power to vote or direct the vote and
sole or shared power to dispose or to direct the disposition.
Except as otherwise noted, no person set forth on Schedule A
directly owns any shares of Common Stock as of the date
The Reporting Person has not entered into any transactions shares
of Common Stock of the Issuer during the past 60 days.
The filing of this Schedule 13D shall not be deemed an admission
that the Reporting Person is, for purposes of Section 13(d) of the
Securities Exchange Act of 1934, as amended, the beneficial owners
of any securities of the Issuer that it does not directly own. The
Reporting Persons specifically disclaims beneficial ownership of
the securities reported owned by other members of the Group that it
does not directly own.
Contracts, Arrangements, Understandings or Relationships with
Respect to Securities of the Issuer.
Item 6 is hereby amended and to add the following:
On November 25, 2020, the Group entered into the Group Agreement
(the “Group Agreement”), pursuant to which, among other things, the
Group agreed (i) to solicit proxies or written consents in
connection with the Solicitation, (ii) to take such other actions
as the Group deems necessary or advisable to achieve the foregoing,
(iii) and that the Group’s expenses incurred in connection with the
Solicitation would be shared equally by the Reporting Person and B.
In addition to the Series H Preferred Stock of the Issuer reported
owned herein, as of the date hereof, the Reporting Person
beneficially owns 5,000 shares of the Issuer’s Series I Preferred
Stock and 1,000 shares of the Issuer’s Series J Preferred
The Reporting Person may be deemed to beneficially own an
additional 5,250 shares of Series J Preferred Stock of the Issuer
that are held by a separately managed account (“SMA”) managed by
the Reporting Person.
The Reporting Person disclaims beneficial ownership of the shares
held by the SMA except to the extent of its pecuniary interest
therein. Each of the Series I Preferred Stock and Series J
Preferred Stock are not currently convertible into Common Stock and
only become convertible into Common Stock if the Issuer amends its
Articles of Incorporation to authorize additional shares of Common
Stock. This amendment has not been filed and/or accepted by the
State of Delaware as of the date of this filing.
At the time of investment in the Series I and Series J Preferred
Stock, the Reporting Person entered into voting agreements (the
“Voting Agreements”) that provide for James Heckman and Robert
Scott, jointly and severally, for the shares owned directly by the
Reporting Person and Ross Levinsohn and Robert Scott, jointly and
severally, for the shares owned by the SMA, with full right of
substitution to vote the Reporting Person's and the SMA’s shares of
Series I and Series J Preferred Stock in favor of any resolution
presented to the shareholders of the Issuer (a) to approve an
Amendment (as defined in the Securities Purchase Agreement for each
of the Series I Preferred Stock and Series J Preferred Stock) and
(b) to approve a reverse split of the Issuer’s Common Stock in any
amount of 2 to 1 up to 100 to 1, such amount to be determined in
the discretion of the Board of Directors of the Issuer. These
voting agreements are not revocable by the Reporting
The description of the Voting Agreements is qualified in its
entirety by reference to the full text of the Voting Agreements,
copies of which are attached hereto as Exhibits 99.3, 99.4 and 99.5
and are incorporated herein by reference.
Material to be Filed as Exhibits
After reasonable inquiry and to the best of its knowledge and
belief, the undersigned certifies that the information set forth in
this statement is true, complete and correct.
Dated: November 27, 2020
180 DEGREE CAPITAL CORP.
/s/ Daniel B. Wolfe
Name: Daniel B. Wolfe