1 ----------------------------------- OMB APPROVAL ----------------------------------- OMB Number 3235-0287 Expires: February 1, 2000 Estimated average burden: 0.5 hours ----------------------------------- U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 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 box if no longer subject of Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b). ________________________________________________________________________________ 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, if an Entity (Voluntary) ________________________________________________________________________________ 4. Statement for Month/Year 7/99 ________________________________________________________________________________ 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 Joint/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 ________________________________________________________________________________ 6. 4. 5. Owner- Securities Acquired (A) or Amount of ship 3. Disposed of (D) Securities Form: 7. 2. Transaction (Instr. 3, 4 and 5) Beneficially Direct Nature of Transaction Code ------------------------------- Owned at End (D) or Indirect 1. Date (Instr. 8) (A) of Month Indirect Beneficial Title of Security (Month/ ------------ Amount or Price (Instr. 3 (I) Ownership (Instr. 3) Day/Year) Code V (D) and 4) (Instr.4) (Instr. 4) - ----------------------------------------------------------------------------------------------------------------------------------- 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 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ ____________________________________________________________________________________________________________________________________ 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 Person, see Instruction 4(b)(v). * See Footnote 2 to Table II. (Over) SFC 1474(3/91)
2 FORM 4 (continued) Table II -- Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities) ________________________________________________________________________________ 10. 9. Owner- Number ship of Form 2. Deriv- of Conver- 5. 7. ative Deriv- 11. sion Number of Title and Amount Secur- ative Nature or 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) - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ 5% Convertible Senior Secured $1.404 3/10/98 A (1) 3/10/98 3/15/03 Common 213,675 213,675 D Debentures Stock - ------------------------------------------------------------------------------------------------------------------------------------ Warrants $1.404 3/10/98 A (1) 3/10/98 3/15/05 Common 30,303 30,303 D Stock - ------------------------------------------------------------------------------------------------------------------------------------ Warrants $2.279 3/10/98 A (1) 3/10/98 3/15/05 Common 30,303 30,303 D Stock - ------------------------------------------------------------------------------------------------------------------------------------ 5% Convertible Senior Secured $1.404 6/12/98 A4 (2) 6/12/98 3/15/03 Common 51,363 51,363 D Debentures Stock - ------------------------------------------------------------------------------------------------------------------------------------ Warrants $1.404 6/12/98 A4 (2) 6/12/98 3/15/05 Common 7,284 7,284 D Stock - ------------------------------------------------------------------------------------------------------------------------------------ Warrants $2.279 6/12/98 A4 (2) 6/12/98 3/15/05 Common 7,284 7,284 D Stock - ------------------------------------------------------------------------------------------------------------------------------------ Non-qualified Stock Options $2.375 2/19/98 A4 (3) 2/19/08 Common 1,000,000 1,000,000 D Stock - ------------------------------------------------------------------------------------------------------------------------------------ 5% Convertible Senior Secured $1.1312 4/1/99 A (2) 4/1/99 3/15/03 Common 4,111 4,111 D Debentures Stock - ------------------------------------------------------------------------------------------------------------------------------------ Non-qualified Stock Options $1.125 4/12/99 A (4) 3/8/00 3/8/09 Common 100,000 100,000 D Stock - ------------------------------------------------------------------------------------------------------------------------------------ 5% Convertible Senior Secured $2.4250 7/1/99 A (2) 7/1/99 3/15/03 Common 1,939 1,939 D Debentures Stock - ------------------------------------------------------------------------------------------------------------------------------------ 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 August 9 , 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 SPACE PROVIDED IS INSUFFICIENT, SEE INSTRUCTION 6 FOR PROCEDURE.