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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(Amendment No. 1)*
Argan, Inc.
(Name of Issuer)
Common Stock, par value $0.15
(Title of Class of Securities)
746375104
(CUSIP Number)
Richard A. Krantz
Robinson & Cole LLP
Financial Centre
695 East Main Street
Stamford, Connecticut 06901
(203) 462-7505
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
January 28, 2005
(Date of Event Which Requires Filing of This Statement)
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), Rule 13d-1(f) or Rule 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(b) 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).
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Persons who respond to the collection of information contained in this form are
not required to respond unless the form displays a currently valid OMB control
number.
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CUSIP No 746375104 Page 2 of 13
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(1) Names of reporting persons
IRS Identification Nos. of above persons (entities only).
MSR I SBIC, L.P.
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(2) Check the appropriate box if a member of a group (see instructions)
(a) |_|
(b) |_|
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(3) SEC use only
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(4) Source of funds (see instructions)
WC
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(5) Check if disclosure of legal proceedings 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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Number of shares (7) Sole Voting Power 451,616
beneficially owned ---------------------------------------------------------
by each reporting
person with: (8) Shared Voting Power 53,000(1)
---------------------------------------------------------
(9) Sole Dispositive Power 451,616
---------------------------------------------------------
(10) Shared Dispositive Power 53,000(1)
---------------------- ---------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
504,616(1)
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(12)Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions)
|_|
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(13) Percent of Class Represented by Amount in Row (11)
18.3%
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(14) Type of Reporting Person (See Instructions)
PN
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(1) Includes 50,000 shares of Common Stock underlying warrants
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CUSIP No 746375104 Page 3 of 13
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(1) Names of reporting persons
IRS Identification Nos. of above persons (entities only).
Tri-Lev LLC
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(2) Check the appropriate box if a member of a group (see instructions)
(a) |_|
(b) |_|
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(3) SEC use only
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(4) Source of funds (see instructions)
WC
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(5) Check if disclosure of legal proceedings is required pursuant to
Items 2(d) or 2(e) |_|
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(6) Citizenship or place of organization
Connecticut
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Number of shares (7) Sole Voting Power 3,000
beneficially owned ----------------------------------------------------------
by each reporting
person with: (8) Shared Voting Power 501,616(1)
----------------------------------------------------------
(9) Sole Dispositive Power 3,000
----------------------------------------------------------
(10) Shared Dispositive Power 501,616(1)
-------------------------------------------- -----------------------------------
(11)Aggregate Amount Beneficially Owned by Each Reporting Person
504,616(1)
--------------------------------------------------------------------------------
(12)Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions)
|_|
--------------------------------------------------------------------------------
(13)Percent of Class Represented by Amount in Row (11)
18.3%
--------------------------------------------------------------------------------
(14)Type of Reporting Person (See Instructions)
OO
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(1) Includes 50,000 shares of Common Stock underlying warrants
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CUSIP No 746375104 Page 4 of 13
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(1) Names of reporting persons
IRS Identification Nos. of above persons (entities only).
MSR Advisors, Inc.
--------------------------------------------------------------------------------
(2) Check the appropriate box if a member of a group (see instructions)
(a) |_|
(b) |_|
--------------------------------------------------------------------------------
(3) SEC use only
--------------------------------------------------------------------------------
(4) Source of funds (see instructions)
OO
--------------------------------------------------------------------------------
(5) Check if disclosure of legal proceedings is required pursuant to
Items 2(d) or 2(e)
|_|
--------------------------------------------------------------------------------
(6) Citizenship or place of organization
Connecticut
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Number of shares (7) Sole Voting Power 50,000(1)
beneficially owned ---------------------------------------------------------
by each reporting
person with: (8) Shared Voting Power 454,616
---------------------------------------------------------
(9) Sole Dispositive Power 50,000(1)
---------------------------------------------------------
(10) Shared Dispositive Power 454,616
---------------------- ---------------------------------------------------------
(11)Aggregate Amount Beneficially Owned by Each Reporting Person
504,616(1)
--------------------------------------------------------------------------------
(12)Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions)
|_|
--------------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
18.3%
--------------------------------------------------------------------------------
(14) Type of Reporting Person (See Instructions)
CO
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(1) Includes 50,000 shares of Common Stock underlying warrants.
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CUSIP No 746375104 Page 5 of 13
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(1) Names of reporting persons
IRS Identification Nos. of above persons (entities only).
MSR I SBIC Partners, LLC
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(2) Check the appropriate box if a member of a group (see instructions)
(a) |_|
(b) |_|
--------------------------------------------------------------------------------
(3) SEC use only
--------------------------------------------------------------------------------
(4) Source of funds (see instructions)
AF
--------------------------------------------------------------------------------
(5) Check if disclosure of legal proceedings is required pursuant to
Items 2(d) or 2(e)
|_|
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(6) Citizenship or place of organization
Connecticut
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Number of shares (7) Sole Voting Power 0
beneficially owned ---------------------------------------------------------
by each reporting
person with: (8) Shared Voting Power 504,616(1)
---------------------------------------------------------
(9) Sole Dispositive Power 0
---------------------------------------------------------
(10) Shared Dispositive Power 504,616(1)
--------------------------------------------------------------------------------
(11)Aggregate Amount Beneficially Owned by Each Reporting Person
504,616(1)
--------------------------------------------------------------------------------
(12)Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions)
|_|
--------------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
18.3%
--------------------------------------------------------------------------------
(14) Type of Reporting Person (See Instructions)
OO
--------------------------------------------------------------------------------
(1) Includes 50,000 shares of Common Stock underlying warrants.
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CUSIP No 746375104 Page 6 of 13
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(1) Names of reporting persons
IRS Identification Nos. of above persons (entities only).
Daniel A. Levinson
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(2) Check the appropriate box if a member of a group (see instructions)
(a) |_|
(b) |_|
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(3) SEC use only
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(4) Source of funds (see instructions)
AF
--------------------------------------------------------------------------------
(5) Check if disclosure of legal proceedings is required pursuant
to Items 2(d) or 2(e)
|_|
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(6) Citizenship or place of organization
U.S.
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Number of shares (7) Sole Voting Power 0
beneficially owned --------------------------------------------------------
by each reporting
person with: (8) Shared Voting Power 504,616(1)
--------------------------------------------------------
(9) Sole Dispositive Power 0
--------------------------------------------------------
(10) Shared Dispositive Power 504,616(1)
--------------------------------------------------------------------------------
(11)Aggregate Amount Beneficially Owned by Each Reporting Person
504,616(1)
--------------------------------------------------------------------------------
(12)Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See nstructions)
|_|
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(13) Percent of Class Represented by Amount in Row (11)
18.3%
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(14) Type of Reporting Person (See Instructions)
IN
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(1) Includes 50,000 shares of Common Stock underlying warrants.
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CUSIP No 746375104 Page 7 of 13
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ITEM 1. SECURITY AND ISSUER
This Statement on Schedule 13D (this "Schedule13 D") relates to the
common stock, par value $0.15 per share (the "Common Stock"), of Argan, Inc., a
Delaware corporation (the "Issuer") acquired from Issuer in a private offering
(the "Private Offering") pursuant to that certain Subscription Agreement by and
between Issuer and MSR I SBIC, L.P. (the "Subscription Agreement").
The address of Issuer's principal office is One Church Street, Suite
302, Rockville, MD 20850.
ITEM 2. IDENTITY AND BACKGROUND
This Schedule 13D is being filed on behalf of MSR I SBIC, L.P., a
Delaware limited partnership ("MSRI"), MSR Advisors, Inc. a Delaware Subchapter
"S" corporation ("MSRA"), MSR I SBIC Partners, LLC, a Delaware limited liability
company ("MSRI Partners"), Tri-Lev LLC, a Connecticut limited liability company
("Tri-Lev"), and Daniel A. Levinson, an individual and citizen of the United
States ("Levinson" and, collectively with MSRI, MSRA, MSRI Partners, and
Tri-Lev, the "Reporting Persons").
Appendix A attached hereto and incorporated herein by reference sets
forth with respect to each general partner, executive officer and director of
MSRI, MSRA, MSRI Partners, and Tri-Lev the following information: (a) name; (b)
residence or business address; (c) present principal occupation or employment
and the name, principal business and address of any corporation or other
organization in which such employment is conducted; and (d) citizenship of such
person.
MSRI's principal business is to invest in small to mid-sized companies
with less than $18,000,000 in net worth. The principal address of MSRI is 8
Wright Street, Westport, Connecticut 06880.
Tri-Lev's principal business is investing in a variety of investments.
The principal business address of Tri-Lev is 8 Wright Street, Westport,
Connecticut 06880.
MSRA's principal business is to act as an investment counselor and
portfolio manager of certain funds. The principal business address of MSRA is 8
Wright Street, Westport, Connecticut 06880.
MSRI Partners' principal business is acting as the general partner of
MSRI. The principal business address of MSRI Partners is 8 Wright Street,
Westport, Connecticut 06880.
Levinson's principal business is acting as the president of MSRA.
None of the Reporting Persons or the individuals listed in Appendix A
has been convicted in a criminal proceeding (excluding traffic violations or
similar misdemeanors) during the past five years.
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CUSIP No 746375104 Page 8 of 13
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None of the Reporting Persons or the individuals listed in Appendix A
has been a party to any civil proceeding of a judicial or administrative body of
competent jurisdiction and as a result of such proceeding was or is subject to a
judgment, decree, or final order enjoining further violations of, or prohibiting
or mandating activities subject to, federal or state securities laws, or finding
any violation with respect to such laws during the last five years.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
On January 28, 2005, Issuer and MSRI entered into the Subscription
Agreement, pursuant to which Issuer agreed to sell and MSRI agreed to purchase
shares of Common Stock at a price of $7.75 per share (the "Share Price"). The
acquisition of shares by MSRI was funded out of working capital. Pursuant to the
Subscription Agreement, the Issuer has agreed to issue additional shares of
Common Stock to MSRI in accordance with the Subscription Agreement under certain
conditions upon the earlier of (i) the Issuer's issuance of additional shares of
Common Stock having an aggregate purchase price of at least $2,500,000 for a
consideration per share less than the Share Price, subject to certain
exclusions; and (ii) July 31, 2005. The number of additional shares to be issued
would effectively reduce the Issuer's purchase price per common share as set
forth in the Subscription Agreement.
ITEM 4. PURPOSE OF TRANSACTION
The Common Stock has been acquired for the purpose of making an
investment in the Issuer and not with the present intention of acquiring control
of the Issuer's business. Levinson participates directly in the management of
the Issuer through representation on the Issuer's Board of Directors (the
"Board") by virtue of Levinson's appointment to fill a vacancy on the Board
effective as of May 1, 2003.
The Reporting Persons intend to review the investment in the Issuer on
the basis of various factors, including the Issuer's business, financial
condition, results of operations and prospects, general economic and industry
conditions, the securities markets in general and those for the Issuer's
Securities in particular, as well as other developments and other investment
opportunities. Based upon such review, the Reporting Persons will take such
actions in the future as they may deem appropriate in light of the circumstances
existing from time to time. If the Reporting Persons believe that further
investment in the Issuer is attractive, whether because of the market price of
the Issuer's Securities or otherwise, they may acquire shares of Common Stock or
other securities of the Issuer either in the open market or in
privately-negotiated transactions. Similarly, depending on market conditions and
other factors, the Reporting Persons may determine to dispose of some or all of
the Securities currently owned by the Reporting Persons or otherwise acquired by
the Reporting Persons either in the open market or in privately negotiated
transactions.
Except as set forth above, the Reporting Persons have not formulated
any plans or proposals that relate to or would result in:
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CUSIP No 746375104 Page 9 of 13
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(a) The acquisition by any person of additional securities of the
Issuer other than pursuant to the Subscription Agreement, or
the disposition of securities of the Issuer;
(b) An extraordinary corporate transaction, such as a merger,
reorganization or liquidation involving the Issuer or any of
its subsidiaries;
(c) A sale or transfer of a material amount of assets of the
Issuer or any of its subsidiaries;
(d) Any change in the present Board of Directors of management of
the Issuer, including any plans or proposals to change the
number of or term of Directors or to fill any existing
vacancies on the Board;
(e) Any material change in the present capitalization or dividend
policy of the Issuer;
(f) Any other material change in the Issuer's business or
corporate structure;
(g) Changes in the Issuer's charter, by-laws, or instruments
corresponding thereto or other actions that may impede the
acquisition of control of the Issuer by any person;
(h) Causing a class of the securities of the Issuer to be delisted
from a national securities exchange or cease to be authorized
to be traded in an inter-dealer quotation system of a
registered national securities association;
(i) A class of equity securities of the Issuer becoming eligible
for termination of registration pursuant to Section 12(g)(4)
of the Securities Act of 1933, as amended; or
(j) Any action similar to any of those listed above.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
(a) and (b) As a result of certain relationships, each of the Reporting
Persons may be deemed to directly and/or indirectly beneficially own up to
504,616 shares of Common Stock, representing in the aggregate approximately
18.3% of the outstanding shares of Common Stock, based on the number of shares
of Common Stock reported to be outstanding as of February 7, 2005, in the
Issuer's Quarterly Report on Form 10-QSB for the period ended October 31, 2003,
as filed with the Securities and Exchange Commission (the "SEC") on December 13,
2004, together with (i) the number of shares of Common Stock issued in the
Private Offering pursuant to which MSRI acquired their shares. Each Reporting
Person expressly disclaims beneficial ownership of any Securities beneficially
owned by any other Reporting Person.
Due to their relationship with one another, the Reporting Persons may
be deemed to constitute a "group" under Section 13(d) of the Securities Exchange
Act of 1934, as amended (the "Act"), with respect to their beneficial ownership
of the shares of Common Stock and warrants. The Reporting Persons, however,
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CUSIP No 746375104 Page 10 of 13
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expressly disclaim such status and declare that the filing of this Schedule 13D
is not and should not be deemed an admission that any Reporting Person, for
purposes of Section 13(d) of the Act or otherwise, is the beneficial owner of
the shares of Common Stock or warrants held by any other Reporting Person.
Reporting Number of Shares Aggregate Percentage
With Sole Voting Number of Shares With Number of of Class
and Dispositive Shared Voting Shares Beneficially
Persons Power and Dispositive Power Beneficially Owned Owned
Common Underlying Common Underlying
Stock Warrants(1 Stock Warrants(1)
MSRI 451,616 0 454,616 50,000 504,616 18.3%
Tri-Lev 3,000 0 454,616 50,000 504,616 18.3%
MSRA 0 50,000 454,616 50,000 504,616 18.3%
MSRI Partners 0 0 454,616 50,000 504,616 18.3%
Daniel A. Levinson 0 0 454,616 50,000 504,616 18.3%
(1) warrants are exercisable until December 31, 2012.
(c) other than as reported in this Schedule 13D, none of the
Reporting Persons has effected any transactions involving the
Common Stock or the warrants in the 60 days prior to filing
this Schedule 13D.
(d) No other persons have the right to receive or the power to
direct the receipt of dividends from, or the proceeds from the
sale of, the Securities.
(e) Not applicable.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO
SECURITIES OF THE ISSUER
There are no contracts, arrangements, understandings or relationships
(legal or otherwise) among the persons named in Item 2 and between such persons
and any person with respect to any securities of the issuer.
ITEM 7. MATERIAL FILED AS EXHIBITS
1. Joint Filing Agreement, dated May 9, 2003.*
2. Power of Attorney, dated May 9, 2003.**
* Incorporated by reference to Exhibit 1 to the Reporting Person's Schedule 13D
filed with the Securities and Exchange Commission on May 9, 2003.
** Incorporated by reference to Exhibit 2 to the Reporting Person's Schedule 13D
filed with the Securities and Exchange Commission on May 9, 2003.
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CUSIP No 746375104 Page 11 of 13
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SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true and correct.
Dated as of February 10, 2005
MSR I SBIC, L.P.
By: /s/ Daniel Levinson
------------------------------------
Name: Daniel Levinson
Title: President, MSR Advisors, Inc.
Tri-Lev LLC
By: /s/ Daniel Levinson
------------------------------------
Name: Daniel Levinson
Title: Managing Member
MSR Advisors, Inc.
By: /s/ Daniel Levinson
------------------------------------
Name: Daniel Levinson
Title: President
MSR I SBIC Partners, LLC
By: /s/ Daniel Levinson
------------------------------------
Name: Daniel Levinson
Title: Managing Member
Daniel A. Levinson
/s/ Daniel Levinson
-----------------------------------------
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CUSIP No 746375104 Page 12 of 13
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APPENDIX A
MSR ADVISORS, INC.; Investment Advisor to MSRI and Manager of Tri-Lev
Each of the listed persons is a resident of the United States and has his/her
business address at 8 Wright Street, Westport, Connecticut 06880. Unless
otherwise noted, each of the listed persons' principal occupation is also their
position with MSRI Advisors.
NAME/PLACE OF CITIZENSHIP POSITION WITH MSRI ADVISORS, INC.
Daniel A. Levinson Sole Shareholder/President
Kerri Cagnassola Chief Financial Officer
David Schneider President
Marshall Kiev Chief Operating Officer
Mark Bates Vice President
MSR I SBIC Partners, LLC: General Partner of MSRI
Each of the listed individuals is a resident of the United States and has
his/her business address at 8 Wright Street, Westport, Connecticut 06880.
NAME/PLACE OF CITIZENSHIP POSITION WITH MSRI PARTNERS PRINCIPAL OCCUPATION
Daniel A. Levinson Managing Member President of MSRA
Kerri Cagnassola Member CFO of MSRA
Marshall Kiev Member Chief Operating Officer of MSRA
David Schneider Member Partner of MSRA
Mark Bates Member Vice President of MSRA
MSR I SBIC, L.P.
Unless otherwise noted below, each of the listed persons is a resident of the
United States and has its business address at 8 Wright Street, Westport,
Connecticut 06880. MSR Partners principal occupation is also its position with
MSR I SBIC, LP.
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CUSIP No 746375104 Page 13 of 13
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NAME/PLACE OF CITIZENSHIP POSITION WITH MSRI
MSR I SBIC Partners, LLC General Partner
TRI-LEV LLC
Unless otherwise noted below, each of the listed persons is a resident of the
United States and has a business address at 8 Wright Street, Westport,
Connecticut 06880. Unless otherwise noted, each of the listed persons' principal
occupation is also their position with MSRI Partners.
NAME/PLACE OF CITIZENSHIP POSITION WITH MSRI PRINCIPAL OCCUPATION PRINCIPAL
ADVISORS, INC. BUSINESS/RESIDENTIAL ADDRESS
Daniel A. Levinson Managing Member President of MSRA
MSR Advisors Manager Investment Counselor and
Portfolio Manager
Jonathan Levinson Member Private Investor 75 Dorchester Road,
Scarsdale, New York 10583
Deborah Weber Member Homemaker 220 Mulbury Road, Orange,
Connecticut 06477