Delaware
|
7371
|
20-3858769
|
||
(State
or other jurisdiction of
|
(Primary
Standard Industrial
|
(I.R.S.
Employer
|
||
incorporation
or organization)
|
Classification
Code Number)
|
Identification
No.)
|
12121
Wilshire Blvd.,
|
Suite
322
|
Los
Angeles, CA 90025
|
(310)
903-4001
|
(Address,
including zip code, and telephone number,
including
area code, of registrant’s principal executive
offices)
|
Copy
to:
|
||
Mr. Brian
Ross
|
J.
Truman Bidwell, Jr.
|
|
Chief
Executive Officer
|
Sullivan
& Worcester LLP
|
|
Accelerize
New Media, Inc.
|
1290
Avenue of the Americas
|
|
12121
Wilshire Blvd., Suite 322
|
New
York, NY 10104
|
|
Los
Angeles, CA 90025
|
Tel:
(212) 660-3032/Fax: (212) 660-3031
|
|
(310)903-4001
|
||
(Name,
address, including zip code,and telephone number,
including
area code, of agent for service)
|
Large
accelerated filer: o
|
Accelerated
filer: o
|
Non-accelerated
filer: o
|
Smaller
reporting company: R
|
·
|
9,271,704
shares of common stock which are presently
outstanding;
|
·
|
5,400,000
shares of common stock underlying our 10% Series A Convertible Preferred
Stock, and issueable upon
conversion;
|
·
|
804,815
shares of common stock to be received by holders of the 10% Series A
Convertible Preferred Stock as dividends;
and
|
·
|
Up
to 1,350,000 shares of common stock underlying
warrants.
|
Page
|
|
About
this Prospectus
|
4
|
Incorporation
by Reference
|
4
|
Where
You Can Find More Information
|
4
|
Warning
Concerning Forward-Looking Statements
|
5
|
Prospects
Summary
|
6
|
Use
of Proceeds
|
7
|
Determination
of Offering Price and Market Data
|
7
|
Selling
Security Holders
|
7
|
Description
of Securities
|
11
|
Plan
of Distribution
|
14
|
Legal
Matters
|
16
|
Experts
|
16
|
|
·
|
The
company’s Annual Report on Form 10-K for the fiscal year ended December
31, 2007.
|
|
·
|
The
company’s Current Report on Form 8-K filed on January 8,
2008.
|
Securities
Offered
|
16,826,519
shares of common stock, $.001 par value, consisting of: 9,271,704 shares
of common stock $.001 par value per share; 5,400,000 shares of common
stock, underlying our 10% Series A Convertible Preferred Stock; Up to
804,815 shares of common stock to be received as dividend on our preferred
stock; and 1,350,000 shares of common stock underlying
warrants.
|
Common
Stock Outstanding
|
23,901,261
shares as of April 10, 2008, not including 5,400,000 shares underlying the
10% Series A Convertible Preferred Stock, 11,887,500 shares underlying 8%
Series B Convertible Preferred Stock, 1,401,260 shares of common stock to
be received as PIK dividends, and 7,399,375 shares underlying
warrants.
|
Use
of proceeds
|
We
will not receive any of the proceeds from the sale of the shares by the
selling security holders, although we may receive up to approximately
$203,000 upon the exercise of the warrants in full at the current exercise
price. These proceeds, if any, are expected to be used for working
capital. We will pay all of the expenses of this offering, including,
without limitation, professional fees, printing expenses and registration
fees.
|
Risk
factors
|
The
offering involves a high degree of risk. Please refer to ‘‘Risk Factors’’
incorporated by reference herein from our Annual Report on Form 10-K for
the fiscal year ended December 31, 2007 for a description of the risk
factors you should consider.
|
·
|
9,271,704
shares of common stock which are presently
outstanding;
|
·
|
5,400,000
shares of common stock underlying our 10% Series A Convertible Preferred
Stock, and issueable upon
conversion;
|
·
|
804,815
shares of common stock to be received by holders of the 10% Series A
Convertible Preferred Stock as dividends;
and
|
·
|
Up
to 1,350,000 shares of common stock underlying
warrants.
|
Name
of Selling
Security
Holder
|
Number
of Shares
Common
of Stock
Beneficially
Owned
Prior
to Offering (1)
|
Percentage
of Shares
of
Common Stock
Beneficially
Owned
Prior
to Offering (2)
|
Maximum
Number
of
Shares of Common
Stock
to be sold
Pursuant
to this
Prospectus
|
Number
of Shares
of
Common Stock
Beneficially
Owned
after
Offering
|
Percentage
of Shares
of
Common Stock
Beneficially
Owned
After
Offering
|
James
Adametz
|
80,934
(3)
|
*
|
80,934
|
0
|
0%
|
Michael
Bruno
|
100,000
|
*
|
100,000
|
0
|
0%
|
Leonard
Cohen
|
135,356
(4)
|
*
|
135,356
|
0
|
0%
|
Elicia
David
|
640,767
(5)
|
2.6%
|
640,767
|
0
|
0%
|
Phillip
David
|
100,000
|
*
|
100,000
|
0
|
0%
|
Richard
David
|
100,000
|
*
|
100,000
|
0
|
0%
|
Robert
Gerola
|
525,000
|
2.1%
|
525,000
|
0
|
0%
|
Dr.
Austin Gleason
|
520,712
(6)
|
2.1%
|
520,712
|
0
|
0%
|
Georgeanna
Gleasson
|
50,000
|
*
|
50,000
|
0
|
0%
|
Chris
Gordon
|
200,000
|
*
|
200,000
|
0
|
0%
|
Dr.
Wilfred Huse
|
100,000
|
*
|
100,000
|
0
|
0%
|
Gad
Janay
|
634,630
(7)
|
2.6%
|
634,630
|
0
|
0%
|
Dr.
Michel Janis
|
100,000
|
*
|
100,000
|
0
|
0%
|
Brian
Kandel
|
100,000
|
*
|
100,000
|
0
|
0%
|
Patrick
Keating
|
80,802
(8)
|
*
|
80,802
|
0
|
0%
|
Jill
Lamberson
|
1,050,000
|
4.2%
|
1,050,000
|
0
|
0%
|
Dan
Lee
|
641,425
(9)
|
2.6%
|
641,425
|
0
|
0%
|
Frank
Lee
|
15,000
|
*
|
15,000
|
0
|
0%
|
Gregory
Menillo
|
280,255
(10)
|
1.2%
|
280,255
|
0
|
0%
|
Jeff
Miller
|
270,219
(11)
|
1.1%
|
270,219
|
0
|
0%
|
Andrew
Moley
|
539,123
(12)
|
2.2%
|
539,123
|
0
|
0%
|
Russ
Moore
|
200,000
|
*
|
200,000
|
0
|
0%
|
David
Mulkey
|
200,000
|
*
|
200,000
|
0
|
0%
|
Mario
Novogrodski
|
100,000
|
*
|
100,000
|
0
|
0%
|
Victor
Novogrodski
|
100,000
|
*
|
100,000
|
0
|
0%
|
Pierce
D. Nunley
|
764,123
(13)
|
3.2%
|
764,123
|
0
|
0%
|
Dr
Jayakumar Patil
|
354,774
(14)
|
1.5%
|
354,774
|
0
|
0%
|
Gail
and Richard Ross
|
50,000
|
*
|
50,000
|
0
|
0%
|
Matt
Rottenberg
|
10,000
|
*
|
10,000
|
0
|
0%
|
Len
Schiller
|
370,767
(15)
|
1.5%
|
370,767
|
0
|
0%
|
Phil
Schiller
|
370,603
(16)
|
1.5%
|
370,603
|
0
|
0%
|
Donald
R. Smith
|
420,384
(17)
|
1.7%
|
420,384
|
0
|
0%
|
Sharon
Standowski
|
1,750,000
|
6.8%
|
1,750,000
|
0
|
0%
|
David
Stein
|
100,000
|
*
|
100,000
|
0
|
0%
|
Andy
Taffin
|
100,000
|
*
|
100,000
|
0
|
0%
|
Linda
Vanle
|
80,934
(18)
|
*
|
80,934
|
0
|
0%
|
Richard
Viglione
|
25,000
|
*
|
25,000
|
0
|
0%
|
Johnny
Walker
|
50,000
|
*
|
50,000
|
0
|
0%
|
Joyce
Westmoreland
|
319,726
(19)
|
1.3%
|
319,726
|
0
|
0%
|
Doug
Wertheimer
|
270,767
(20)
|
1.1%
|
270,767
|
0
|
0%
|
Wayne
White
|
100,000
|
*
|
100,000
|
0
|
0%
|
Jan
Zigler
|
100,000
|
*
|
100,000
|
0
|
0%
|
Camien
Advisors LLC
|
1,750,000
(21)
|
6.8%
|
1,750,000
|
0
|
0%
|
J.
Truman Bidwell Jr.
|
329,451
(22)
|
1.4%
|
329,451
|
0
|
0%
|
Jo-Bar
Enterprises, LLC
|
640,767
(23)
|
2.6%
|
640,767
|
0
|
0%
|
Mulkey
II Limited Partnership
|
539,562
(24)
|
2.2%
|
539,562
|
0
|
0%
|
Norman
H. Cohen & S. Randall Partnership
|
184,890
(25)
|
*
|
184,890
|
0
|
0%
|
Simon
Asset Management
|
740,548
(26)
|
3.0%
|
740,548
|
0
|
0%
|
Skyebanc,
Inc.
|
178,200
(27)
|
*
|
178,200
|
0
|
0%
|
Mario
Marsillo Jr.
|
120,059
(28)
|
*
|
120,059
|
0
|
0%
|
Vincent
LaBarbara
|
94,278
(29)
|
*
|
94,278
|
0
|
0%
|
Richard
Galterio
|
77,422
(30)
|
*
|
77,422
|
0
|
0%
|
Peter
Fulton
|
60,041
(31)
|
*
|
60,041
|
0
|
0%
|
Darlene
Gaudios
|
10,000
(32)
|
*
|
10,000
|
0
|
0%
|
Total
|
16,826,519
|
16,826,519
|
·
|
the
stated value of each share is
$15.00,
|
·
|
the
shares pay cumulative dividends of 10% per annum payable quarterly on each
of September 1, December 1, March 1 and June 1 commencing on September 1,
2006. Dividends are payable at our option in cash or shares of our common
stock valued at $0.15 per share;
|
·
|
the
shares carry a liquidation preference equal to the stated value plus any
accrued but unpaid dividends;
|
·
|
the
shares are entitled to vote together with our common stock on all matters
submitted to a vote of our stockholders. Each share of the 10% Series A
Convertible Preferred Stock is entitled to a number of votes equal to the
number of shares of our common stock issuable upon the conversion of the
10% Series A Convertible Preferred
Stock;
|
·
|
we
cannot sell any shares of common stock for a consideration per share less
than $0.15, nor issue any securities that are convertible into or
exchangeable for common stock at an exercise or conversion price below
$0.15 per share, without the prior written consent of the holders of a
majority of the shares of 10% Series A Convertible Preferred Stock then
issued and outstanding. Excluded from this limitation is the issuance of
stock options to our management under a qualified stock option
plan;
|
·
|
the
shares are not redeemable by us nor are they subject to any call option;
and
|
·
|
each
share of 10% Series A Convertible Preferred Stock is convertible at the
option of the holder into shares of our common stock at an initial
conversion price of $0.15 per share subject to adjustment for stock
splits, dividends and reclassifications. In the event a public market is
established for our common shares, the shares of 10% Series A Convertible
Preferred Stock are subject to mandatory conversion by us upon 30 days
notice if the average closing price of our common stock is $0.40 or more
per share for 10 consecutive trading days and the average daily volume is
at least 100,000 shares.
|
·
|
the
stated value of each share is
$35.00;
|
·
|
the
shares pay cumulative dividends of 8% per annum payable quarterly on each
of September 1, December 1, March 1 and June 1 commencing on December 1,
2007. Dividends are payable at our option in cash or shares of our common
stock valued at $0.35 per share;
|
·
|
the
shares carry a liquidation preference equal to the stated value plus any
accrued but unpaid dividends, subject to the rights of the 10% Series A
Convertible Preferred Stock;
|
·
|
the
shares are entitled to vote together with our common stock on all matters
submitted to a vote of our stockholders. Each share of 8% Series B
Convertible Preferred Stock is entitled to a number of votes equal to the
number of shares of our common stock issuable upon the conversion of the
8% Series B Convertible Preferred
Stock;
|
·
|
we
cannot sell any shares of common stock for a consideration per share less
than $0.35, nor issue any securities that are convertible into or
exchangeable for common stock at an exercise or conversion price below
$0.35 per share, without the prior written consent of the holders of a
majority of the shares of 8% Series B Convertible Preferred Stock then
issued and outstanding. Excluded from this limitation are the issuance of
common stock as dividend to our 10% Series A Convertible Preferred Holders
and issuance of stock options to our management under a qualified stock
option plan;
|
·
|
the
shares are redeemable by us at any time after June 1, 2012, at a
redemption price of $52.50 per share, plus all accrued and unpaid
dividends as of the redemption date;
and
|
·
|
each
share of 8% Series B Convertible Preferred Stock is convertible at the
option of the holder into shares of our common stock at an initial
conversion price of $0.35 per share subject to adjustment for stock
splits, dividends and reclassifications. In the event a public market is
established for our common shares, the shares of 8% Series B Convertible
Preferred Stock are subject to mandatory conversion by us upon 30 days
notice if the average closing price of our common stock is $1.00 or more
per share for 10 consecutive trading
days.
|
·
|
ordinary
brokerage transactions and transactions in which the broker-dealer
solicits investors;
|
·
|
block
trades in which the broker-dealer will attempt to sell the shares as agent
but may position and resell a portion of the block as principal to
facilitate the transaction;
|
·
|
purchases
by a broker-dealer as principal and resale by the broker-dealer for its
account;
|
·
|
an
exchange distribution in accordance with the rules of the applicable
exchange;
|
·
|
privately
negotiated transactions;
|
·
|
to
cover short sales made after the date that the registration statement of
which this prospectus is a part is declared effective by the
SEC;
|
·
|
through
the writing or settlement of options or other hedging transactions,
whether through an options exchange or
otherwise;
|
·
|
broker-dealers
may agree with the selling security holder to sell a specified number of
such shares at a stipulated price per
share;
|
·
|
a
combination of any such methods of sale;
and
|
·
|
any
other method permitted pursuant to applicable
law.
|
SEC
Registration and Filing Fee
|
$
|
270.07
|
||
Legal
Fees and Expenses*
|
$
|
140,000.00
|
||
Accounting
Fees and Expenses*
|
$
|
112,000.00
|
||
Financial
Printing*
|
$
|
1,500.00
|
||
Transfer
Agent Fees*
|
$
|
1,500.00
|
||
Miscellaneous*
|
$
|
729.93
|
||
TOTAL
|
$
|
256,000.00
|
Exhibit
Number
|
Description
|
2
|
Asset
Purchase Agreement by and between the Registrant and The Debt Reduction
Group Inc., dated December 15, 2006.*
|
3.1
|
Certificate
of Incorporation dated November 22, 2005, as amended by Certificate of
Designation dated August 8, 2006 and Certificate of Designation dated
December 20, 2006.*
|
3.2
|
Bylaws.*
|
4.1
|
Form
of Common Stock Certificate.*
|
4.2
|
Form
of Preferred Stock Certificate.*
|
4.3
|
Form
of Warrant.*
|
4.4
|
Form
of Subscription Agreement of 10% Series A Convertible Preferred
Stock.*
|
4.5
|
Form
of Subscription Agreement of 8% Series B Convertible Preferred Stock .
*****
|
4.6
|
Form
of Common Stock Purchase Warrant for 8% Series B Convertible Preferred
Stock. *****
|
5
|
Legal
Opinion of Sullivan & Worcester LLP.**
|
10.1
|
Accelerize
New Media Inc. Stock Option Plan adopted December 15,
2006.*
|
10.2
|
Employment
Agreement effective as of January 1, 2007 between the Registrant and Brian
Ross.*
|
10.3
|
Employment
Agreement effective as of January 1, 2007 between the Registrant and
Chris Meredith.*
|
10.4
|
Employment
Agreement effective as of January 1, 2007 between the Registrant and
Damon Stein.**
|
10.5
|
Consulting
Agreement effective as of January 1, 2007 between the Registrant and
Facility Consulting, LLC.**
|
10.6
|
Promissory
Note by and between the Registrant and Nunley Investments LLC, dated April
4, 2007.***
|
10.7
|
Promissory
Note by and between the Registrant and Austin W. Gleason, dated April 4,
2007.***
|
10.8
|
Promissory
Note by and between the Registrant and Austin W. Gleason, dated April 25,
2007.****
|
10.9
|
Promissory
Note by and between the Registrant and Nunley Investments LLC, dated April
25, 2007.****
|
10.10
|
Form
of Note Conversion Agreement.******
|
10.11
|
Form
of Stock Option Agreement (incorporated by reference to the Company’s
Registration Statement on Form SB-2.*
|
23.1
|
Consent
of Sherb & Co., LLP.
|
23.2
|
Consent
of Sullivan & Worcester LLP (included in Exhibit
5).**
|
24
|
Power
of Attorney.*
|
*
|
Included in, and incorporated
herein by reference to, our Registration Statement on Form SB-2 filed with
the SEC on December 22,
2006.
|
**
|
Included in, and incorporated
herein by reference to, Amendment No. 1 to our Registration Statement on
Form SB-2 filed with the SEC on January 31,
2007.
|
***
|
Included
in, and incorporated herein by reference to, Amendment No. 2 to our
Registration Statement on Form SB-2 filed with the SEC on April 17,
2007.
|
****
|
Included
in, and incorporated herein by reference to, Amendment No. 3 to our
Registration Statement on Form SB-2 filed with the SEC on April 30,
2007.
|
*****
|
Included
in, and incorporated herein by reference to, our Quarterly Report on Form
10QSB filed on August 13,
2007.
|
******
|
Included
in, and incorporated herein by reference to, our Current Report on Form
8-K furnished on September 7, 2007.
|
ACCELERIZE
NEW MEDIA, INC.
|
||
By:
|
/s/
Brian Ross
|
|
Brian
Ross
President,
Chief Executive Officer and Treasurer
|
||
Pursuant
to the requirements of the Securities Act of 1933, this amendment has been
signed by the following persons in the capacities and on the dates
indicated.
|
Signature
|
Title
|
Date
|
|||
/s/
Brian Ross
|
President,
Chief Executive Officer, Treasurer, Director (Principal Executive Officer,
Principal Financial Officer and Principal Accounting
Officer)
|
April
11, 2008
|
|||
Brian
Ross
|
|||||
*
|
Chief
Technology Officer, Assistant Treasurer, Assistant Secretary,
Director
|
April
11, 2008
|
|||
Chris
Meredith
|
|||||
*
By:
|
/s/
Brian Ross
|
||||
Brian
Ross (Attorney-in-fact)
|
Exhibit
Number
|
Description
|
2
|
Asset
Purchase Agreement by and between the Registrant and The Debt Reduction
Group Inc., dated December 15, 2006.*
|
3.1
|
Certificate
of Incorporation dated November 22, 2005, as amended by Certificate of
Designation dated August 8, 2006 and Certificate of Designation dated
December 20, 2006.*
|
3.2
|
Bylaws.*
|
4.1
|
Form
of Common Stock Certificate.*
|
4.2
|
Form
of Preferred Stock Certificate.*
|
4.3
|
Form
of Warrant.*
|
4.4
|
Form
of Subscription Agreement of 10% Series A Convertible Preferred
Stock.*
|
4.5
|
Form
of Subscription Agreement of 8% Series B Convertible Preferred Stock .
*****
|
4.6
|
Form
of Common Stock Purchase Warrant for 8% Series B Convertible Preferred
Stock. *****
|
5
|
Legal
Opinion of Sullivan & Worcester LLP.**
|
10.1
|
Accelerize
New Media Inc. Stock Option Plan adopted December 15,
2006.*
|
10.2
|
Employment
Agreement effective as of January 1, 2007 between the Registrant and Brian
Ross.*
|
10.3
|
Employment
Agreement effective as of January 1, 2007 between the Registrant and
Chris Meredith.*
|
10.4
|
Employment
Agreement effective as of January 1, 2007 between the Registrant and
Damon Stein.**
|
10.5
|
Consulting
Agreement effective as of January 1, 2007 between the Registrant and
Facility Consulting, LLC.**
|
10.6
|
Promissory
Note by and between the Registrant and Nunley Investments LLC, dated April
4, 2007.***
|
10.7
|
Promissory
Note by and between the Registrant and Austin W. Gleason, dated April 4,
2007.***
|
10.8
|
Promissory
Note by and between the Registrant and Austin W. Gleason, dated April 25,
2007.****
|
10.9
|
Promissory
Note by and between the Registrant and Nunley Investments LLC, dated April
25, 2007.****
|
10.10
|
Form
of Note Conversion Agreement.******
|
10.11
|
Form
of Stock Option Agreement (incorporated by reference to the Company’s
Registration Statement on Form SB-2.*
|
23.1
|
Consent
of Sherb & Co., LLP.
|
23.2
|
Consent
of Sullivan & Worcester LLP (included in Exhibit
5).**
|
24
|
Power
of Attorney.*
|
*
|
Included in, and incorporated
herein by reference to, our Registration Statement on Form SB-2 filed with
the SEC on December 22,
2006.
|
**
|
Included in, and incorporated
herein by reference to, Amendment No. 1 to our Registration Statement on
Form SB-2 filed with the SEC on January 31,
2007.
|
***
|
Included
in, and incorporated herein by reference to, Amendment No. 2 to our
Registration Statement on Form SB-2 filed with the SEC on April 17,
2007.
|
****
|
Included
in, and incorporated herein by reference to, Amendment No. 3 to our
Registration Statement on Form SB-2 filed with the SEC on April 30,
2007.
|
*****
|
Included
in, and incorporated herein by reference to, our Quarterly Report on Form
10QSB filed on August 13,
2007.
|
******
|
Included
in, and incorporated herein by reference to, our Current Report on Form
8-K furnished on September 7, 2007.
|