UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 6)*
REGENCY AFFILIATES, INC.
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(Name of Issuer)
Common Stock, $0.01 par value per share
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(Title of Class of Securities)
758847107
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(CUSIP Number)
Todd Emmerman, Esq.
c/o Katten Muchin Rosenman LLP
575 Madison Avenue
New York, New York 10022
(212) 940-8800
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(Name, Address and Telephone Number of Person Authorized to Receive Notices
and Communications)
August 14, 2007
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(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 which is the subject of this Schedule 13D, and is filing
this schedule because of Rule 13d-1 (b)(3) or (4), check the following box |_|.
Note: Six copies of this statement, including all exhibits, should be
filed with the Commission. See Rule 13d-1(a) 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 (the "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).
SCHEDULE 13D
CUSIP No. 758847107
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1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Royalty Holdings LLC
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X|
(b) |_|
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
OO
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5 CHECK BOX 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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7 SOLE VOTING POWER
1,823,738 Shares
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NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 1,823,738 Shares
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,823,738 Shares
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
52.62%
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14 TYPE OF REPORTING PERSON*
OO
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 2 of 8
SCHEDULE 13D
CUSIP No. 758847107
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1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Royalty Management, Inc.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X|
(b) |_|
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
N/A
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5 CHECK BOX 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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7 SOLE VOTING POWER
1,823,738 Shares (comprised of shares owned by Royalty
Holdings LLC)
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NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 1,823,738 Shares (comprised of shares owned by Royalty
WITH Holdings LLC)
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10 SHARED DISPOSITIVE POWER
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,823,738 Shares (comprised of shares owned by Royalty Holdings LLC)
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
52.62%
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14 TYPE OF REPORTING PERSON*
CO
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 3 of 8
SCHEDULE 13D
CUSIP No. 758847107
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1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Laurence S. Levy
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X|
(b) |_|
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
N/A
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5 CHECK BOX 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
United States
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7 SOLE VOTING POWER
2,098,738 Shares (comprised of 1,823,738 shares owned by
Royalty Holdings LLC, 50,000 shares
owned by Mr. Levy and options to acquire
225,000 shares held by Mr. Levy)
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NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
2,098,738 Shares (comprised of 1,823,738 shares owned by
Royalty Holdings LLC, 50,000 shares
owned by Mr. Levy and options to acquire
225,000 shares held by Mr. Levy)
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,098,738 Shares (comprised of 1,823,738 shares owned by Royalty
Holdings LLC, 50,000 shares owned by Mr. Levy and
options to acquire 225,000 shares held by Mr. Levy)
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
56.87%
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14 TYPE OF REPORTING PERSON*
IN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 4 of 8
SCHEDULE 13D
CUSIP No. 758847107
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1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Neil N. Hasson
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X|
(b) |_|
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
N/A
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5 CHECK BOX 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
United Kingdom
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7 SOLE VOTING POWER
175,000 Shares (comprised of 50,000 shares held by
Mr. Hasson and options to acquire 125,000
shares held by Mr. Hasson)
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NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 175,000 Shares (comprised of 50,000 shares held by
WITH Mr. Hasson and options to acquire 125,000
shares held by Mr. Hasson)
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10 SHARED DISPOSITIVE POWER
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
175,000 Shares (comprised of 50,000 shares held by Mr. Hasson and
options to acquire 125,000 shares held by Mr. Hasson)
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.87%
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14 TYPE OF REPORTING PERSON*
IN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 5 of 8
This Amendment No. 6 is filed by (i) Royalty Holdings LLC ("Royalty
LLC"), (ii) Royalty Management, Inc. ("Royalty Inc."), (iii) Laurence S. Levy
and (iv) Neil N. Hasson (collectively, the "Reporting Persons") and amends the
Statement on Schedule 13D (the "Schedule 13D") filed by the Reporting Persons on
October 28, 2002 as amended by Amendment No. 1 filed by the Reporting Persons on
November 8, 2002, Amendment No.2 filed by the Reporting Persons on July 7, 2003,
Amendment No. 3 filed by the Reporting Persons on October 3, 2003, Amendment No.
4 filed by the Reporting Persons on October 18, 2004 and Amendment No. 5 filed
by the Reporting Persons on June 24, 2005. Capitalized terms used but not
otherwise defined herein shall have the meanings ascribed to such terms in the
Schedule 13D.
Item 3. Source and Amount of Funds or Other Consideration.
Item 3 is hereby amended as follows:
On August 14, 2007, Mr. Levy was issued 50,000 Common Stock purchase
options pursuant to the Company's 2003 Stock Incentive Plan, as amended (the
"Plan"). The options have an exercise price of $5.10 per share.
Item 5. Interest in Securities of the Issuer.
(a) Item 5(a) is hereby amended and restated as follows:
As of the close of business on January 3, 2008:
(i) Royalty LLC owns 1,823,738 shares of Common Stock. Such shares
constitute approximately 52.62% of the shares of Common Stock outstanding;
(ii) Royalty Inc. owns no shares of Common Stock. As the Manager of
Royalty LLC Royalty Inc. may be deemed, under the provisions of Rule 13d-3 of
the Exchange Act Rule, to be the beneficial owner of the 1,823,738 shares of
Common Stock that are held by Royalty LLC. Such shares of Common Stock
constitute approximately 52.62% of the shares of Common Stock outstanding;
(iii) As President, sole director and sole stockholder of Royalty
Inc., which is the Manager of Royalty LLC, Mr. Levy may be deemed, under the
provisions of Rule 13d-3 of the Exchange Act Rules, to be the beneficial owner
of the 1,823,738 shares held by Royalty LLC. In addition, Mr. Levy holds 50,000
shares of Common Stock and options to purchase an additional 225,000 shares of
Common Stock. The foregoing shares of Common Stock that may be deemed to be
beneficially owned by Mr. Levy, in the aggregate, constitute approximately
56.87% of the shares of Common Stock outstanding (assuming exercise of such
options); and
(iv) Mr. Hasson holds 50,000 shares of Common Stock and beneficially
owns 125,000 shares of Common Stock underlying common stock purchase options
held by Mr. Hasson. Such shares of Common Stock constitute approximately 4.87%
of the shares of Common Stock outstanding (assuming exercise of such options).
(c) Item 5(c) is hereby amended as follows:
Reference is made to Item 3 above.
Page 6 of 8
Item 6. Contracts, Arrangements, Understandings or Relationships With
Respect to Securities of the Issuer.
Item 6 is hereby amended as follows:
The stock options described in Item 3 were granted pursuant to a
Stock Option Agreement between the Company and Mr. Levy, dated as of August 14,
2007. The options became exercisable on August 14, 2007.
Item 7. Material to be filed as Exhibits
Item 7 is hereby amended as follows:
Exhibit 18: Stock Option Agreement, dated as of August 14, 2007,
between the Company and Laurence S. Levy (incorporated by reference to Exhibit
10.1 of the Company's Quarterly Report on Form 10-QSB for the period ended June
30, 2007).
Page 7 of 8
SIGNATURE
After reasonable inquiry and to the best of their knowledge and belief,
the undersigned certify that the information set forth in this statement is
true, complete and correct.
Dated: January 9, 2008
ROYALTY HOLDINGS LLC
By: Royalty Management, Inc., Manager
By: /s/ Laurence S. Levy
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Name: Laurence S. Levy
Title: President
ROYALTY MANAGEMENT, INC.
By: /s/ Laurence S. Levy
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Name: Laurence S. Levy
Title: President
/s/ Laurence S. Levy
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Laurence S. Levy
/s/ Neil N. Hasson
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Neil N. Hasson
Page 8 of 8