1 FORM 4 [ ] CHECK THIS BOX IF NO LONGER SUBJECT TO SECTION 16. FORM 4 OR FORM 5 OBLIGATIONS MAY CONTINUE. SEE INSTRUCTION 1(b). U.S. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 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(1) OF THE INVESTMENT COMPANY ACT OF 1940 OMB APPROVAL OMB NUMBER 3235-0287 EXPIRES: FEBRUARY 1, 2000 ESTIMATED AVERAGE BURDEN: 0.5 HOURS 1. Name and Address of Reporting Person* REICHER MICHAEL K. - ------------------------------------------------------------------- (LAST) (FIRST) (MIDDLE) C/O HALSEY DRUG CO., INC. 695 N. PERRYVILLE RD. BLDG. 2 - ------------------------------------------------------------------- (STREET) ROCKFORD ILLINOIS 61107 - ------------------------------------------------------------------- (CITY) (STATE) (ZIP) 2. ISSUER NAME AND TICKER OR TRADING SYMBOL HALSEY DRUG CO., INC. SYMBOL: HDG - ------------------------------------------------------------------- 3. IRS OR SOCIAL SECURITY NUMBER OF REPORTING PERSON (VOLUNTARY) - ------------------------------------------------------------------- 4. STATEMENT FOR MONTH/YEAR 4/99 - ------------------------------------------------------------------- 5. IF AMENDMENT, DATE OF ORIGINAL (MONTH/YEAR) - ------------------------------------------------------------------- 6. RELATIONSHIP OF REPORTING PERSON TO ISSUER X DIRECTOR 10% OWNER X OFFICER - --- -- --- (GIVE TITLE BELOW) __OTHER (SPECIFY BELOW) CHIEF EXECUTIVE OFFICER - ------------------------------------------------------------------- 7. INDIVIDUAL OR GROUP FILING (CHECK APPLICABLE LINE) X FORM FILED BY ONE REPORTING PERSON -- FORM FILED BY MORE THAN ONE REPORTING -- PERSON - ------------------------------------------------------------------- TABLE I-- NON-DERIVATIVE SECURITIES ACQUIRED, DISPOSED OF, OR BENEFICIALLY OWNED (OVER) REMINDER: REPORT ON A SEPARATE LINE FOR EACH CLASS OF SECURITIES BENEFICIALLY OWNED DIRECTLY OR INDIRECTLY. * IF THIS FORM IS FILED BY MORE THAN ONE PERSON, SEE INSTRUCTION 4(b)(v) * SEE FOOTNOTE 2 TO TABLE II. SFC 1474 (3/91)
1. TITLE OF SECURITY 2. TRANS- 3. TRANS- 4. SECURITIES ACQUIRED (A) 5. AMOUNT OF 6. OWNER 7. NATURE OF (INSTR. 3) ACTION ACTION OR DISPOSED OF (D) SECURITIES SHIP FORM: INDIRECT DATE CODE (INSTR. 3, 4, AND 5) BENEFICIALLY DIRECT (D) BENEFICIAL (INSTR. 8) OWNED AT OR INDIRECT OWNERSHIP (MONTH/ END OF MONTH (I) (INSTR. 4) DAY/ (INSTR. 3 AND (INSTR. 4) YEAR) 4) CODE V AMOUNT (A) OR PRICE (D) COMMON STOCK 10/1/98 A* 2,186 A* $1.8406 D COMMON STOCK 1/1/99 A* 3,462 A* $1.1625 D 5,648 2 FORM 4 (CONTINUED) TABLE II - DERIVATIVE SECURITIES ACQUIRED, DISPOSED OF, OR BENEFICIALLY OWNED (E.G., PUTS, CALLS, WARRANTS, OPTIONS, CONVERTIBLE SECURITIES)
1. TITLE OF DERIVATIVE 2. 3. 4. 5. 6. SECURITY CONVER- TRANS- TRANS- NUMBER OF DATE EXER (INSTR. 3) SION OR ACTION ACTION DERIVATIVE CISABLE AND EXERCISE DATE CODE SECURITIES AC- EXPIRATION PRICE OF (MONTH/ (INSTR. QUIRED (A) OR DATE DERIV- DAY/ 8) DISPOSED OF (D) (MONTH/DAY/ ATIVE YEAR) (INSTR. 3, 4, AND YEAR) SECURITY 5) DATE EXPIR- EXER- ATION CISABLE DATE CODE V (A) (D) - ------------------------------------------------------------------------------------------------------------ 5% CONVERTIBLE SENIOR $1.404 3/10/98 A (1) 3/10/98 3/15/03 SECURED DEBENTURES - ------------------------------------------------------------------------------------------------------------ WARRANTS $1.404 3/10/98 A (1) 3/10/98 3/15/05 - ------------------------------------------------------------------------------------------------------------ WARRANTS $2.279 3/10/98 A (1) 3/10/98 3/15/05 - ------------------------------------------------------------------------------------------------------------ 5% CONVERTIBLE SENIOR $1.404 6/12/98 A4 (2) 6/12/98 3/15/03 SECURED DEBENTURES - ------------------------------------------------------------------------------------------------------------ WARRANTS $1.404 6/12/98 A4 (2) 6/12/98 3/15/05 - ------------------------------------------------------------------------------------------------------------ WARRANTS $2.279 6/12/98 A4 (2) 6/12/98 3/15/05 - ------------------------------------------------------------------------------------------------------------ NON-QUALIFIED STOCK OPTIONS $2.375 2/19/98 A4 (3) 2/19/08 - ------------------------------------------------------------------------------------------------------------ 5% CONVERTIBLE SENIOR $1.1312 4/1/99 A (2) 4/1/99 3/15/03 SECURED DEBENTURES - ------------------------------------------------------------------------------------------------------------ NON-QUALIFIED STOCK OPTIONS $1.125 4/12/99 A (4) 3/8/00 3/8/09 - ------------------------------------------------------------------------------------------------------------ EXPLANATION OF RESPONSES: (1) PURCHASED IN CONNECTION WITH A PRIVATE OFFERING ON MARCH 10, 1998 CONSISTING OF A CONVERTIBLE DEBENTURE CONVERTIBLE AT ANY TIME AND STOCK PURCHASE WARRANTS (30,303 SHARES OF WHICH ARE PRESENTLY EXERCISABLE AT $1.404 PER SHARE AND 30,303 SHARES OF WHICH ARE PRESENTLY EXERCISABLE AT $2.279 PER SHARE). (2) ACQUIRED PURSUANT TO AN OPTION EXERCISE IN JUNE 1998, CONSISTING OF: (i) A CONVERTIBLE DEBENTURE, CONVERTIBLE AT ANY TIME; (ii) WARRANTS TO PURCHASE SHARES OF COMMON STOCK (7,284 SHARES OF WHICH ARE PRESENTLY EXERCISABLE AT $1.404 PER SHARE AND 7,284 SHARES OF WHICH ARE PRESENTLY EXERCISABLE AT $2.279 PER SHARE); AND (iii) CERTAIN INTEREST PAYMENTS PAYABLE QUARTERLY WHICH ARE PAID IN THE FORM OF SHARES OF COMMON STOCK OF THE ISSUER (SEE TABLE I). (3) OPTIONS VEST QUARTERLY, WITH 62,500 OPTIONS VESTING EVERY QUARTER EFFECTIVE MAY 1, 1998. (4) OPTIONS VEST 25% ANNUALLY, WITH 25,000 OPTIONS VESTING EVERY MARCH 8, BEGINNING MARCH 8, 2000. /s/ Michael K. Reicher May 7, 1999 ---------------------- ------------ NAME: MICHAEL K. REICHER DATE SIGNATURE OF REPORTING PERSON INTENTIONAL MISSTATEMENTS OR OMISSIONS OF FACTS CONSTITUTE FEDERAL CRIMINAL VIOLATIONS. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a). NOTE: FILE THREE COPIES OF THIS FORM, ONE OF WHICH MUST BE MANUALLY SIGNED. IF SPACED PROVIDED IS INSUFFICIENT, SEE INSTRUCTION 6 FOR PROCEDURE.
7. 8. PRICE 9. NUMBER 10. OWNER- 11. NATURE TITLE AND AMOUNT OF OF OF DERIV- SHIP OF UNDERLYING SECURITIES DERIV- ATIVE FORM OF INDIRECT (INSTR. 3 AND 4) ATIVE SECURITIES DE- BENEFICIAL SECURITY BENE- RIVATIVE OWNERSHIP (INSTR.5) FICIALLY SECURITY: OWNED AT DIRECT END (D) OR (INSTR. 4) OF MONTH INDIRECT TITLE (I) (INSTR. 4) (INSTR. 4) AMOUNT OR NUMBER OF SHARES -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------- COMMON STOCK 213,675 213,675 D - -------------------------------------------------------------------------------------------------------- COMMON STOCK 30,303 30,303 D - -------------------------------------------------------------------------------------------------------- COMMON STOCK 30,303 30,303 D - -------------------------------------------------------------------------------------------------------- COMMON STOCK 51,363 51,363 D - -------------------------------------------------------------------------------------------------------- COMMON STOCK 7,284 7,284 D - -------------------------------------------------------------------------------------------------------- COMMON STOCK 7,284 7,284 D - -------------------------------------------------------------------------------------------------------- COMMON STOCK 1,000,000 1,000,000 D - -------------------------------------------------------------------------------------------------------- COMMON STOCK 4,111 4,111 D - -------------------------------------------------------------------------------------------------------- COMMON STOCK 100,000 100,000 D - --------------------------------------------------------------------------------------------------------