AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON MAY 22, 1998
REGISTRATION NO. 333-46685
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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AMENDMENT NO. 3 TO
FORM S-1
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
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SQL FINANCIALS INTERNATIONAL, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
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DELAWARE 7372 58-1972600
(STATE OR OTHER (PRIMARY STANDARD INDUSTRIAL (I.R.S. EMPLOYER
JURISDICTION CLASSIFICATION CODE NUMBER) IDENTIFICATION)
OF INCORPORATION OR
ORGANIZATION) ---------------
SQL FINANCIALS INTERNATIONAL, INC.
3950 JOHNS CREEK COURT, SUITE 100
SUWANEE, GEORGIA 30024
(770) 291-3900
(ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER, INCLUDING AREA CODE, OF
REGISTRANT'S PRINCIPAL EXECUTIVE OFFICES)
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THE CORPORATION TRUST COMPANY
CORPORATION TRUST CENTER
1209 ORANGE STREET
WILMINGTON, DELAWARE 19801
(302) 658-7581
(NAME, ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER, INCLUDING AREA CODE,
OF AGENT FOR SERVICE)
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COPIES TO:
G. DONALD JOHNSON, ESQ. OBY T. BREWER III, ESQ.
SHARON L. MCBRAYER, ESQ. JOHN FRANKLIN SMITH, ESQ.
ELIZABETH O. DERRICK, ESQ. LAUREN Z. BURNHAM, ESQ.
WOMBLE CARLYLE SANDRIDGE & RICE, PLLC MORRIS, MANNING & MARTIN, L.L.P.
1275 PEACHTREE STREET, N.E., SUITE 700 1600 ATLANTA FINANCIAL CENTER
ATLANTA, GEORGIA 30309 3343 PEACHTREE ROAD, N.E.
(404) 872-7000 ATLANTA, GEORGIA 30326
(404) 233-7000
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APPROXIMATE DATE OF COMMENCEMENT OF PROPOSED SALE TO THE PUBLIC: As soon as
practicable after this registration statement becomes effective.
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If any of the securities being registered on this form are to be offered on
a delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933, check the following box. [X]
If this form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, check the following box and
list the Securities Act registration statement number of the earlier effective
registration statement for the same offering. [_]
If this form is a post-effective amendment filed pursuant to Rule 462(c)
under the Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for the same offering. [_]
If delivery of the prospectus is expected to be made pursuant to Rule 434,
check the following box. [_]
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THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE OR
DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT
SHALL FILE A FURTHER AMENDMENT WHICH SPECIFICALLY STATES THAT THIS
REGISTRATION STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH
SECTION 8(A) OF THE SECURITIES ACT OF 1933 OR UNTIL THE REGISTRATION STATEMENT
SHALL BECOME EFFECTIVE ON SUCH DATE AS THE SECURITIES AND EXCHANGE COMMISSION,
ACTING PURSUANT TO SAID SECTION 8(A), MAY DETERMINE.
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PART II
ITEM 13. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION
Securities and Exchange Commission registration fee............... $ 13,440
National Association of Securities Dealers, Inc. fee.............. 5,275
Nasdaq National Market listing fee................................ 75,625
Accountants' fees and expenses.................................... 375,000
Legal fees and expenses........................................... 350,000
Blue Sky fees and expenses........................................ 10,000
Transfer Agent's fees and expenses................................ 10,000
Printing and engraving expenses................................... 150,000
Miscellaneous..................................................... 410,660
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Total Expenses.................................................. 1,400,000
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* To be completed by amendment. All fees other than the SEC registration fee,
the NASD fee and the Nasdaq listing fee are estimated.
None of the expenses of issuance and distribution will be borne by the
Selling Stockholders.
ITEM 14. INDEMNIFICATION OF DIRECTORS AND OFFICERS
The Restated By-Laws of the Company (the "Restated By-Laws") and the
Restated Certificate of Incorporation (the "Restated Certificate") of the
Company provide that the directors and officers of the Company shall be
indemnified by the Company to the fullest extent authorized by Delaware law,
as it now exists or may in the future be amended, against all expenses and
liabilities reasonably incurred in connection with service for or on behalf of
the Company. Insofar as indemnification for liabilities arising under the
Securities Act of 1933, as amended (the "Securities Act"), may be permitted to
directors, officers and controlling persons of the Company pursuant to the
Restated By-Laws, in the opinion of the Securities and Exchange Commission,
such indemnification is against public policy as expressed in the Securities
Act and is, therefore, unenforceable. The Company intends to obtain insurance
which insures the directors and officers of the Company against certain losses
and which insures the Company against certain of its obligations to indemnify
such directors and officers. In addition, the Restated Certificate of the
Company provides that the directors of the Company will not be personally
liable for monetary damages to the Company for breaches of their fiduciary
duty as directors, unless they violated their duty of loyalty to the Company
or its stockholders, acted in bad faith, knowingly or intentionally violated
the law, authorized illegal dividends or redemptions or derived an improper
personal benefit from their action as directors. Such limitations of personal
liability under the Delaware Business Corporation Law do not apply to
liabilities arising out of certain violations of the federal securities laws.
While non-monetary relief such as injunctive relief, specific performance and
other equitable remedies may be available to the Company, such relief may be
difficult to obtain or, if obtained, may not adequately compensate the Company
for its damages.
There is no pending litigation or proceeding involving any director,
officer, employee or agent of the Company where indemnification by the Company
will be required or permitted. The Company is not aware of any threatened
litigation or proceeding that might result in a claim for such
indemnification.
Section 8 of the Underwriting Agreement filed as Exhibit 1.1 hereto also
contains certain provisions pursuant to which certain officers, directors and
controlling persons of the Company may be entitled to be indemnified by the
Underwriters named therein.
ITEM 15. RECENT SALES OF UNREGISTERED SECURITIES
During the past three years, the Company has issued the securities set forth
below which were not registered under the Securities Act:
(i) On April 1, 1994, the Company issued 428,572 shares of Series C
Preferred Stock for $7.00 per share. Of the 428,572 shares of Series C
Preferred Stock, 87,500 shares were issued to Tech Ventures in exchange for
a promissory note payable by Tech Ventures in the amount of $612,500.
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(ii) On October 25, 1995, the Company issued a Warrant to Tech Ventures
to purchase 87,500 shares of Series C Preferred Stock at an exercise price
of $7.00 per share in exchange for the 87,500 shares of Series C Preferred
Stock held by Tech Ventures and amendment of the $612,500 promissory note
to the Company payable by Tech Ventures.
(iii) On February 21, 1995, the Registrant issued 15,000 shares of its
Common Stock to the Company's then-current common stockholders for $0.67
per share and 701,755 shares of its Series D Preferred Stock for $8.55 per
share. In addition, the Company issued warrants to purchase a total of
17,544 shares of its Series D Preferred Stock at an exercise price of $8.55
per share.
(iv) On January 5, 1996, the Registrant issued a warrant to purchase
5,848 shares of Series D Preferred Stock at an exercise price of $8.55 per
share. The warrant was issued to a lender in exchange for the lender's
agreement to extend the Company's working capital line of credit.
(v) On February 15, 1996, the Registrant issued 697,675 shares of its
Series E Preferred Stock for $8.60 per share. In addition, the Company
issued warrants to its lender to purchase 8,721 shares of its Series E
Preferred Stock at an exercise price of $8.60 per share.
(vi) On September 26, 1997, the Registrant issued 628,809 shares of
Series F Preferred Stock for $9.60 per share. Of the 628,809 shares of
Series F Preferred Stock, Spitfire Capital Partners, L.P., an affiliate of
NationsBanc Montgomery Securities LLC, acquired 208,334 shares of Series F
Preferred Stock for $9.60 per share.
(vii) On September 26, 1997, the Registrant issued warrants to purchase
46,821 shares of Series F Preferred Stock for $9.60 per share to certain
stockholders in connection with loans made to the Company.
(viii) On February 5, 1998, the Registrant issued 225,000 shares of
Common Stock and a warrant to purchase 300,000 shares of Common Stock at an
exercise price of $3.69 per share, to Technology Ventures LLC in exchange
for its 20% interest in SQL Financials Services, LLC.
(ix) On February 9, 15, 17, 18 and 19, 1998, the Company issued 17,544
shares of Series D Preferred Stock to certain existing stockholders upon
the exercise of existing warrants, at a price of $8.55 per share.
(x) Since March 31, 1995, the Registrant has issued stock options to
purchase an aggregate of 1,478,689 shares of its Common Stock under the
1992 Stock Option Plan at a weighted average exercise price of $3.81 per
share.
Except as described above, no underwriters were engaged in connection with
any of the foregoing issuances of securities. The sale and issuance of shares
listed above were exempt from registration under the Securities Act by virtue
of Sections 3(a), 3(b) and 4(a) of the Securities Act and in reliance on Rule
701 and Regulation D promulgated thereunder.
ITEM 16. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
(a) Exhibits. The following is a list of exhibits filed as part of the
Registration Statement.
EXHIBIT NO. DESCRIPTION
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1.1* --Form of Underwriting Agreement.
2.1* --Acquisition Agreement between the Registrant and Technology
Ventures, LLC dated February 5, 1998.
2.2* --Non-Negotiable Subordinated Promissory Note to Technology
Ventures, LLC dated February 5, 1998.
2.3* --Warrant for purchase of 200,000 shares issued to Technology
Ventures, LLC dated February 5, 1998.
3.1* --Amended and Restated Certificate of Incorporation of the
Registrant dated September 26, 1997.
3.2* --Bylaws of the Registrant.
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EXHIBIT NO. DESCRIPTION
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3.3* --Form of Amended and Restated Certificate of Incorporation of the
Registrant, to be effective upon the effectiveness of this
Offering.
3.4* --Form of Amended and Restated Bylaws of the Registrant, to be
effective upon the effectiveness of this Offering.
4.1* --See Exhibits 3.3 and 3.4 for provisions of the Amended and
Restated Certificate of Incorporation and Amended and Restated
Bylaws of the Registrant defining rights of the holders of Common
Stock of the Registrant.
4.2 --Specimen Stock Certificate.
5.1* --Opinion of Womble Carlyle Sandridge & Rice, PLLC, as to the
legality of the shares being registered.
--Amended and Restated Shareholders' Voting Agreement dated
10.1* September 1, 1995.
--Restated Shareholders Agreement dated September 1, 1995, as
10.2* amended.
10.3* --Stock Purchase Agreement dated February 15, 1996 (Series E).
10.4* --Stock Purchase Agreement dated September 26, 1997 (Series F).
10.5* --SQL 1992 Stock Option Plan, effective November 22, 1992.
--1998 Stock Incentive Plan, effective February 5, 1998 (with form
10.6* option agreement).
10.7* --Lease Agreement between the Registrant and Technology
Park/Atlanta, Inc. dated March 20, 1997.
10.8* --License and Private Label Agreement between the Registrant and
Personnel Data Systems, Inc. dated March 1, 1996 (with addendum).
--Loan and Security Agreement with Silicon Valley Bank dated March
10.9* 28, 1997.
--Leasing Technologies International, Inc. Master Lease Agreement
10.10* dated March 13, 1997.
10.11* --Leasing Technologies International, Inc. Master Note and
Security Agreement dated March 20, 1997.
10.12* --Software License and Support Agreement between the Registrant
and McCall Consulting Group dated February 5, 1998.
--Agreement between the Registrant and Joseph S. McCall dated
10.13* February 5, 1998.
10.14* --Independent Contractor Agreement between the Registrant and
McCall Consulting Group, Inc. dated February 5, 1998.
10.15* --Independent Contractor Agreement between Registrant and Joseph
S. McCall dated February 5, 1998.
10.16* --Letter Agreement regarding Joseph McCall 1998 Compensation Plan
dated February 5, 1998.
10.17 --Loan and Security Agreement between the Company, SQL Financial
Services, L.L.C. and Silicon Valley Bank
11.1* --Statement re: Computation of Per Share Earnings.
21.1* --List of Subsidiaries.
23.1 --Consent of Arthur Andersen LLP.
--Consent of Womble Carlyle Sandridge & Rice, PLLC (included in
23.2 Exhibit 5.1).
23.3* --Consent of Willamette Management Associates.
24.1 --Powers of Attorney (included on signature page).
27.1* --Financial Data Schedule. (For SEC use only)
--Report of Independent Public Accountants on Financial Statement
99.1* Schedule.
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(b) Schedule II--Valuation and Qualifying Accounts
* Previously filed.
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ITEM 17. UNDERTAKINGS
(a) The undersigned Registrant hereby undertakes to provide to the
Underwriters at the closing specified in the Underwriting Agreement
certificates in such denominations and registered in such names as required by
the Underwriters to permit prompt delivery to each purchaser.
(b) Insofar as indemnification for liabilities arising under the Securities
Act may be permitted to directors, officers and controlling persons of the
Registrant pursuant to the foregoing provisions, or otherwise, the Registrant
has been advised that, in the opinion of the Securities and Exchange
Commission, such indemnification is against public policy as expressed in the
Securities Act and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by the
Registrant of expenses incurred or paid by a director, officer or controlling
person of the Registrant in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling person in
connection with the securities being registered, the Registrant will, unless
in the opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question whether
such indemnification by it is against public policy as expressed in the
Securities Act and will be governed by the final adjudication of such issue.
(c) The Registrant hereby undertakes that:
(i) For purposes of determining any liability under the Securities Act,
the information omitted from the form of prospectus filed as part of this
Registration Statement in reliance upon Rule 430A and contained in the form
of prospectus filed by the Registrant pursuant to Rule 424(b)(1) or (4) or
497(h) under the Securities Act shall be deemed to be part of the
Registration Statement as of the time it was declared effective.
(ii) For purposes of determining any liability under the Securities Act,
each post-effective amendment that contains a form of prospectus shall be
deemed to be a new registration statement relating to the securities
offered therein, and the offering of such securities at that time shall be
deemed to be the initial bona fide offering thereof.
(d) The Registrant hereby further undertakes:
(i) To file, during any period in which offers or sales are being made, a
post-effective amendment to this registration statement:
(a) To include any prospectus required by section 10(a)(3) of the
Securities Act of 1933;
(b) To reflect in the prospectus any facts or events arising after
the effective date of the registration statement (or the most recent
post-effective amendment thereof) which, individually or in the
aggregate, represent a fundamental change in the information set forth
in the registration statement. Notwithstanding the foregoing, any
increase or decrease in volume of securities offered (if the total
dollar value of securities offered would not exceed that which was
registered) and any deviation from the low or high end of the estimated
maximum offering range may be reflected in the form of prospectus filed
with the Commission pursuant to Rule 424(b) if, in the aggregate, the
changes in volume and price represent no more than a 20% change in the
maximum aggregate offering price set forth in the "Calculation of
Registration Fee" table in the effective registration statement.
(c) To include any material information with respect to the plan of
distribution not previously disclosed in the registration statement or
any material change to such information in the registration statement.
(ii) To remove from registration by means of a post-effective amendment
any of the securities being registered which remain unsold at the
termination of the offering.
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SIGNATURES
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT, THE REGISTRANT HAS DULY
CAUSED THIS AMENDMENT NO. 3 TO REGISTRATION STATEMENT TO BE SIGNED ON ITS
BEHALF BY THE UNDERSIGNED, THEREUNTO DULY AUTHORIZED, IN THE CITY OF SUWANEE,
STATE OF GEORGIA ON THE 22ND DAY OF MAY, 1998.
SQL Financials International, Inc.
By: /s/ Stephen P. Jeffery
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STEPHEN P. JEFFERY
CHAIRMAN, CHIEF EXECUTIVE OFFICER
AND PRESIDENT
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT, THIS REGISTRATION
STATEMENT HAS BEEN SIGNED BY THE FOLLOWING PERSONS IN THE CAPACITIES AND ON
THE DATES INDICATED.
SIGNATURE TITLE DATE
Chairman, Chief
/s/ Stephen P. Jeffery Executive Officer May 22, 1998
- ------------------------------------- (Principal
STEPHEN P. JEFFERY Executive Officer);
President and
Director
Chief Financial
/s/ William A. Fielder III Officer (Principal May 22, 1998
- ------------------------------------- Financial and
WILLIAM A. FIELDER III Accounting Officer)
* Director
- ------------------------------------- May 22, 1998
JOSEPH S. MCCALL
* Director
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WILLIAM S. KAISER
* Director
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DONALD L. HOUSE
* Director
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TENCH COXE
* Director
- ------------------------------------- May 22, 1998
SAID MOHAMMADIOUN
/s/ Stephen P. Jeffery
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* By Stephen P. Jeffery, attorney-in-fact
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