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). ================================================================================ 1. Name and Address of Reporting Person* Commonwealth Associates, L.P. -------------------------------------------------------------------------------- (Last) (First) (Middle) 830 Third Avenue -------------------------------------------------------------------------------- (Street) New York New York 10022 -------------------------------------------------------------------------------- (City) (State) (Zip) ================================================================================ 2. Issuer Name and Ticker or Trading Symbol eB2B Commerce, Inc. (NASD SmallCap: EBTB) ================================================================================ 3. IRS or Social Security Number of Reporting Person (Voluntary) ================================================================================ 4. Statement for Month/Year May 2001 ================================================================================ 5. If Amendment, Date of Original (Month/Year) ================================================================================ 6. Relationship of Reporting Person to Issuer (Check all applicable) |X| Director |X| 10% Owner |_| Officer (give title below) |_| Other (specify below) ================================================================================ 7. Individual or Joint/Group Filing (Check Applicable Line) |_| Form filed by one Reporting Person |X| Form filed by more than one Reporting Person ================================================================================ * If the Form is filed by more than one Reporting Person, see Instruction 4(b)(v). ================================================================================ Table I -- Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned ================================================================================
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) ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ====================================================================================================================================
(Over) SEC 1474 Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. ------------------- * If the form is filed by more than one reporting person, see Instruction 4(b)(v). 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) ================================================================================
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) ------------------------------------------------------------------------------------------------------------------------------------ Unit Purchase Common Option (1) (1) 05/02/01 J 2,321,334 immed 04/16/06 Stock 2,321,334 (1) 6,050,254 D (2) ------------------------------------------------------------------------------------------------------------------------------------ Unit Purchase Common Option (1) (1) 05/02/01 I 750,080 immed 04/16/06 Stock 750,080 (1) 14,136,976 I (3) ------------------------------------------------------------------------------------------------------------------------------------ Common Convertible Note $.50 05/02/01 P 4,000,000 immed 10/16/02 Stock 4,000,000 (4) I (4) ------------------------------------------------------------------------------------------------------------------------------------ Common Warrants $.93 05/02/01 P 4,000,000 (4) (4) Stock 4,000,000 (4) 9,370,976 I (4) ------------------------------------------------------------------------------------------------------------------------------------ Common Warrants $.50 05/02/01 J 900,000 (5) (5) Stock 900,000 (5) 900,000 I (5) ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ====================================================================================================================================
Explanation of Responses: See attached footnotes. ** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a). Commonwealth Associates, L.P. By: Commonwealth Associates Management Company, Inc. /s/ Joseph Wynne September 4, 2001 --------------------------------------------- ----------------------- ** Signature of Reporting Person Date Joseph Wynne Chief Financial Officer Note: File three copies of this Form, one of which must be manually signed. If space provided is insufficient, see Instruction 6 for procedure. Page 2 of 3 FOOTNOTES Page 3 of 4 (1) These are options to purchase "Units" at an exercise price of $100,000 per Unit. Each Unit consists of 10,000 shares of Series C Convertible Preferred Stock (each such share being convertible into 20 shares of Common Stock) and warrants to purchase 200,000 shares of Common Stock at an exercise price of $.93 per share. Unit Purchase Options were issued to Commonwealth Associates, L.P. ("Commonwealth") by eB2B Commerce, Inc. (the "Company") in consideration of services performed in connection with a private placement of convertible notes and warrants which closed on May 2, 2001 (the "Private Placement"). Certain of the Unit Purchase Options were distributed by Commonwealth to its employees, including Michael S. Falk (among others). (2) These securities are owned directly by Commonwealth, the general partner of which is Commonwealth Associates Management Co. ("CAMC"). Michael S. Falk ("Falk") and Robert Priddy ("Priddy") are directors and shareholders of CAMC. Falk is the Chairman and principal shareholder of CAMC, which is the principal partner of Commonwealth. Falk and Priddy disclaim beneficial ownership of the securities held by Commonwealth other than that portion which corresponds with their respective interests in Commonwealth. (3) These Unit Purchase Options were distributed to Falk by Commonwealth. The 14,136,976 shares identified as beneficially owned by Falk includes (i) 6,050,254 shares of derivative securities owned by Commonwealth, (ii) 900,000 shares of derivative securities owned by ComVest Venture Partners, LP (see note 5) and (iii) 3,462,246 shares of derivative securities owned by ComVest Capital Partners, LLC. Falk disclaims beneficial ownership of the securities held by ComVest Venture Partners, LP and ComVest Capital Partners, LLC other than that portion which corresponds with his interests in such entities. (4) These Convertible Notes and Warrants were sold as units in the Private Placement. Each of these units, purchased at a purchase price of $100,000 per unit, consisted of Convertible Notes in the principal amount of $100,000, and Warrants to purchase 200,000 shares of Common Stock. The Convertible Notes and Warrants identified on this Form 4 were purchase in the Private Placement by RMC Capital, LLC ("RMC") for an aggregate purchase price of $2,000,000 (20 units). Priddy is a manager and the principal of RMC and disclaims beneficial ownership of the securities held by RMC other than that portion which corresponds with his membership interest therein. The 9,370,976 shares identified as beneficially owned on this line consists of the 8,000,000 shares owned by RMC (through the Convertible Notes and Warrants), and an additional 1,370,976 of derivative securities owned directly by Priddy. These Warrants are exercisable for a period of two years from the earlier of (i) the date the Company receives shareholder approval of the Private Placement, (ii) the date shareholder such approval is no longer required (whether because the Company's Common Stock is no longer listed on NASDAQ or otherwise), or (iii) October 1, 2001 (if the holders of the Warrants exercise their right to accelerate the initial exercise date due to the Company's failure to receive shareholder approval). (5) These Warrants were issued to ComVest Venture Partners, LP in consideration of its making available to the Company a line of credit. The Company terminated the line of credit without making any borrowings thereunder. This Warrants are exercisable for a period of five years from the earlier of (i) the date the Company receives shareholder approval of the Private Placement, (ii) the date shareholder such approval is no longer required (whether because the Company's Common Stock is no longer listed on NASDAQ or otherwise), or (iii) October 1, 2001 (if the holders of the Warrants exercise their right to accelerate the initial exercise date due to the Company's failure to receive shareholder approval). Page 4 of 4 JOINT FILER INFORMATION AND AUTHORIZATION Name: Commonwealth Associates Management Company, Inc. 830 Third Avenue New York, New York 10022 Designated Filer: Commonwealth Associates, LP Issuer & Ticker Symbol: eB2B Commerce, Inc. (EBTB) Statement Month/Year: May 2001 Signature: By: /s/ Joseph Wynne ------------------------------------------------- Joseph Wynne, Chief Financial Officer Name: Michael S. Falk 830 Third Avenue New York, New York 10022 Designated Filer: Commonwealth Associates, L.P. Issuer & Ticker Symbol: eB2B Commerce, Inc. (EBTB) Statement Month/Year: May 2001 Signature: /s/ Michael S. Falk ----------------------------------------------------- Michael S. Falk Name: RMC Capital, LLC 1640 Powers Ferry, Suite 125 Marietta, Georgia 30067 Designated Filer: Commonwealth Associates, L.P. Issuer & Ticker Symbol: eB2B Commerce, Inc. (EBTB) Statement Month/Year: May 2001 Signature: /s/ Robert Priddy ------------------------------------------------------ Robert Priddy, Manager Name: Robert Priddy 1640 Powers Ferry, Suite 125 Marietta, Georgia 30067 Designated Filer: Commonwealth Associates, L.P. Issuer & Ticker Symbol: eB2B Commerce, Inc. (EBTB) Statement Month/Year: May 2001 Signature: /s/ Robert Priddy ----------------------------------------------------- Robert Priddy