U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 4
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934,
Section 17(a) of the Public Utility Holding Company Act of 1935 or
Section 30(f) of the Investment Company Act of 1940
|_| Check this box if no longer subject to Section 16. Form 4 or Form 5
obligations may continue. See Instruction 1(b).
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1. Name and Address of Reporting Person*
Rosenwald, M.D. Lindsay A.
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(Last) (First) (Middle)
787 Seventh Avenue, 48th Floor
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(Street)
New York NY 10019
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(City) (State) (Zip)
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2. Issuer Name and Ticker or Trading Symbol
Discovery Laboratories, Inc./DE (DSCO)
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3. IRS Identification Number of Reporting Person, if an Entity (Voluntary)
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4. Statement for Month/Year
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5. If Amendment, Date of Original (Month/Year)
May 2000
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6. Relationship of Reporting Person to Issuer
(Check all applicable)
|_| Director |X| 10% Owner
|_| Officer (give title below) |_| Other (specify below)
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7. Individual or Joint/Group Filing (Check Applicable Line)
|_| Form filed by one Reporting Person
|X| Form filed by more than one Reporting Person
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* If the Form is filed by more than one Reporting Person, see Instruction
4(b)(v).
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Table I -- Non-Derivative Securities Acquired, Disposed of,
or Beneficially Owned
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6.
4. 5. Owner-
Securities Acquired (A) or Amount of ship
3. Disposed of (D) Securities Form: 7.
Transaction (Instr. 3, 4 and 5) Beneficially Direct Nature of
2. Code ---------------------------- Owned at End (D) or Indirect
1. Transaction (Instr. 8) (A) of Month Indirect Beneficial
Title of Security Date ------------ Amount or Price (Instr. 3 (I) Ownership
(Instr. 3) (mm/dd/yy) Code V (D) and 4) (Instr.4) (Instr. 4)
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Common Stock 05/01/00 P 6,250 A $5.125 3,153,718(1) I By The Aries
Master Fund II(2)
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Common Stock 05/01/00 P 3,021 A $5.125 3,153,718(1) I By Aries Domestic
Fund, L.P.(2)
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Common Stock 05/01/00 P 729 A $5.125 3,153,718(1) I By Aries Domestic
Fund II, L.P.(2)
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Common Stock 05/31/00 P 3,192 A $3.900 3,153,718(1) I By Aries Domestic
Fund, L.P.(2)
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Common Stock 05/31/00 P 758 A $3.900 3,153,718(1) I By Aries Domestic
Fund II, L.P.(2)
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Reminder: Report on a separate line for each class of securities beneficially
owned directly or indirectly.
Page 1 of 3
FORM 4 (continued)
Table II -- Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
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9. 10.
Number Owner-
of ship
2. Deriv- Form of
Conver- 5. 7. ative Deriv- 11.
sion Number of Title and Amount Secur- ative Nature
of Derivative 6. of Underlying 8. ities Secur- of
Exer- 4. Securities Date Securities Price Bene- ity: In-
cise 3. Trans- Acquired (A) Exercisable and (Instr. 3 and 4) of ficially Direct direct
Price Trans- action or Disposed Expiration Date ---------------- Deriv- Owned (D) or Bene-
1. of action Code of(D) (Month/Day/Year) Amount ative at End In- ficial
Title of Deriv- Date (Instr. (Instr. 3, ---------------- or Secur- of direct Owner-
Derivative ative (Month/ 8) 4 and 5) Date Expira- Number ity Month (I) ship
Security Secur- Day/ ------ ------------ Exer- tion of (Instr. (Instr. (Instr. (Instr.
(Instr. 3) ity Year) Code V (A) (D) cisable Date Title Shares 5) 4) 4) 4)
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Explanation of Responses:
(1) See Attachment A.
(2) Securities beneficially acquired represent shares of Common Stock issued
to the Master Fund and the Partnership, respectively. Paramount Capital
Asset Management, Inc. ("Paramount Capital"), of which Dr. Rosenwald is
the sole shareholder, is the General Partner of the Partnership and also
serves as the investment manager to the Master Fund. Dr. Rosenwald may be
deemed to have voting and investment control over the securities of the
issuer owned by the Master Fund and the Partnership under Rule 16a-(a)(1)
of the Securities Exchange Act of 1934. Paramount Capital and Dr.
Rosenwald disclaim beneficial ownership of the securities held by the
Master Fund and the Partnership, except to the extent of their pecuniary
interest therein.
** Intentional misstatements or omissions of facts constitute Federal Criminal
Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
/s/ Lindsay A. Rosenwald July 10, 2000
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** Signature of Reporting Person Date
Lindsay A. Rosenwald, M.D.
Chairman
Paramount Capital Asset Management, Inc.
Investment Manager - Aries Master Fund II
General Partner - Aries Domestic Fund, L.P.
General Partner - Aries Domestic Fund II, L.P.
Note: File three copies of this Form, one of which must be manually signed. If
space provided is insufficient, see Instruction 6 for procedure.
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Attachment A
Securities beneficially owned by Dr. Rosenwald are presented on an as-converted
basis and consist of the following:
1. 168,802 shares of Common Stock and Warrants to purchase (a) 30,664 shares
of Common Stock and (b) 78,798 shares of Series B Preferred Stock, stated
value $10.00, which shares of Preferred Stock are convertible into 245,324
shares of Common Stock, owned directly by Dr. Rosenwald.
2. 1,001,732 shares of Common Stock owned by RAQ, LLC, of which Dr. Rosenwald
is the sole proprietor.
3. (a) 277,951 shares of Common Stock; (b) 210,149 shares of Common Stock
issuable upon conversion of 67,500 shares of Preferred Stock; (c) Warrants
to purchase 6,750 shares of Preferred Stock, which shares of Preferred
Stock are convertible into 21,015 shares of Common Stock; and (d) Warrants
to purchase 2,626 shares of Common Stock, owned by Aries Domestic Fund,
L.P.
4. (a) 646,999 shares of Common Stock; (b) 490,349 shares of Common Stock
issuable upon conversion of 157,500 shares of Preferred Stock; (c)
Warrants to purchase 15,750 shares of Preferred Stock, which shares of
Preferred Stock are convertible into 49,035 shares of Common Stock; and
(d) Warrants to purchase 6,129 shares of Common Stock, owned by The Aries
Master Fund II.
5. 2,943 shares of Common Stock owned by the Aries Domestic Fund II, L.P.
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