ARGAN INC — Major Shareholding Notification 2003

May 6, 2003

SC 13G 1 sc13g04693_05022003.htm sec document SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 -------------- SCHEDULE 13G INFORMATION TO BE INCLUDED IN STATEMENT FILED PURSUANT TO RULES 13d-1(b), (c) AND (d) AND AMENDMENTS THERETO FILED PURSUANT TO 13d-2(b) (Amendment No. )* Puroflow Incorporated -------------------------------------------------------------------------------- (Name of Issuer) COMMON STOCK, PAR VALUE $.15 PER SHARE -------------------------------------------------------------------------------- (Title of Class of Securities) 746375 20 3 -------------------------------------------------------------------------------- (CUSIP Number) April 29, 2003 -------------------------------------------------------------------------------- (Date of Event Which Requires Filing of this Statement) -------------- Check the appropriate box to designate the rule pursuant to which this Schedule is filed: / / Rule 13d-1(b) / x/ Rule 13d-1(c) / / Rule 13d-1(d) ------------------- * 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 the disclosures provided in a prior cover page. The information required in 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 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). ---------------------------- --------------------- CUSIP No. 746375 20 3 13G Page 2 of 14 Pages ---------------------------- --------------------- ================================================================================ 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Wheatley Partners III, L.P. -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) / / (b) / / -------------------------------------------------------------------------------- 3 SEC USE ONLY -------------------------------------------------------------------------------- 4 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware -------------------------------------------------------------------------------- NUMBER OF 5 SOLE VOTING POWER SHARES BENEFICIALLY 180,542 shares OWNED BY EACH REPORTING PERSON WITH ----------------------------------------------------------------- 6 SHARED VOTING POWER 77,523 shares ----------------------------------------------------------------- 7 SOLE DISPOSITIVE POWER 180,542 shares ----------------------------------------------------------------- 8 SHARED DISPOSITIVE POWER 77,523 shares -------------------------------------------------------------------------------- 9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 258,065 shares -------------------------------------------------------------------------------- 10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES / / -------------------------------------------------------------------------------- 11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) 14.4% -------------------------------------------------------------------------------- 12 TYPE OF REPORTING PERSON PN ================================================================================ ---------------------------- --------------------- CUSIP No. 746375 20 3 13G Page 3 of 14 Pages ---------------------------- --------------------- ================================================================================ 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Wheatley Associates III, L.P. -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) / / (b) / / -------------------------------------------------------------------------------- 3 SEC USE ONLY -------------------------------------------------------------------------------- 4 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware -------------------------------------------------------------------------------- NUMBER OF 5 SOLE VOTING POWER SHARES BENEFICIALLY 38,135 shares OWNED BY EACH REPORTING PERSON WITH ----------------------------------------------------------------- 6 SHARED VOTING POWER 219,930 shares ----------------------------------------------------------------- 7 SOLE DISPOSITIVE POWER 38,135 shares ----------------------------------------------------------------- 8 SHARED DISPOSITIVE POWER 219,930 shares -------------------------------------------------------------------------------- 9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 258,065 shares -------------------------------------------------------------------------------- 10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES / / -------------------------------------------------------------------------------- 11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) 14.4% -------------------------------------------------------------------------------- 12 TYPE OF REPORTING PERSON PN ================================================================================ ---------------------------- --------------------- CUSIP No. 746375 20 3 13G Page 4 of 14 Pages ---------------------------- --------------------- ================================================================================ 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Wheatley Foreign Partners III, L.P. -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) / / (b) / / -------------------------------------------------------------------------------- 3 SEC USE ONLY -------------------------------------------------------------------------------- 4 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware -------------------------------------------------------------------------------- NUMBER OF 5 SOLE VOTING POWER SHARES BENEFICIALLY 39,388 shares OWNED BY EACH REPORTING PERSON WITH ----------------------------------------------------------------- 6 SHARED VOTING POWER 218,677 shares ----------------------------------------------------------------- 7 SOLE DISPOSITIVE POWER 39,388 shares ----------------------------------------------------------------- 8 SHARED DISPOSITIVE POWER 218,677 shares -------------------------------------------------------------------------------- 9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 258,065 shares -------------------------------------------------------------------------------- 10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES / / -------------------------------------------------------------------------------- 11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) 14.4% -------------------------------------------------------------------------------- 12 TYPE OF REPORTING PERSON PN ================================================================================ ---------------------------- --------------------- CUSIP No. 746375 20 3 13G Page 5 of 14 Pages ---------------------------- --------------------- ================================================================================ 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Wheatley Partners III, LLC -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) / / (b) / / -------------------------------------------------------------------------------- 3 SEC USE ONLY -------------------------------------------------------------------------------- 4 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware -------------------------------------------------------------------------------- NUMBER OF 5 SOLE VOTING POWER SHARES BENEFICIALLY 0 shares OWNED BY EACH REPORTING PERSON WITH ----------------------------------------------------------------- 6 SHARED VOTING POWER 258,065 shares ----------------------------------------------------------------- 7 SOLE DISPOSITIVE POWER 0 shares ----------------------------------------------------------------- 8 SHARED DISPOSITIVE POWER 258,065 shares -------------------------------------------------------------------------------- 9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 258,065 shares -------------------------------------------------------------------------------- 10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES / / -------------------------------------------------------------------------------- 11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) 14.4% -------------------------------------------------------------------------------- 12 TYPE OF REPORTING PERSON OO ================================================================================ ---------------------------- --------------------- CUSIP No. 746375 20 3 13G Page 6 of 14 Pages ---------------------------- --------------------- Item 1. (a) Name of Issuer: Puroflow Incorporated (b) Address of Issuer's Principal Executive Offices: 10616 Lanark Street, Sun Valley, CA 91352 Item 2. 1. (a) Name of Person Filing: Wheatley Partners III, L.P. (b) Address of Principal Business Office, or if none, Residence: 80 Cuttermill Road, Suite 311, Great Neck, NY 11021 (c) Citizenship: Delaware (d) Title of Class of Securities: Common Stock, par value $.15 per share (e) CUSIP Number: 746375 20 3 2. (a) Name of Person Filing: Wheatley Associates III, L.P. (b) Address of Principal Business Office, or if none, Residence: 80 Cuttermill Road, Suite 311, Great Neck, NY 11021 (c) Citizenship: Delaware (d) Title of Class of Securities: Common Stock, par value $.15 per share (e) CUSIP Number: 746375 20 3 3. (a) Name of Person Filing: Wheatley Foreign Partners III, L.P. (b) Address of Principal Business Office, or if none, Residence: 80 Cuttermill Road, Suite 311, Great Neck, NY 11021 (c) Citizenship: Delaware (d) Title of Class of Securities: Common Stock, par value $.15 per share (e) CUSIP Number: 746375 20 3 4. (a) Name of Person Filing: Wheatley Partners III, LLC (b) Address of Principal Business Office, or if none, Residence: 80 Cuttermill Road, Suite 311, Great Neck, NY 11021 (c) Citizenship: Delaware (d) Title of Class of Securities: Common Stock, par value $.15 per share (e) CUSIP Number: 746375 20 3 The following individuals or entities are identified in this Schedule 13G due to their relationships with one or more of the Reporting Persons disclosed above. The following persons or entities are not Reporting Persons for purposes of this Schedule 13G. ---------------------------- --------------------- CUSIP No. 746375 20 3 13G Page 7 of 14 Pages ---------------------------- --------------------- Members of Wheatley Partners III, LLC, the general partner of Wheatley Partners III, L.P., who do not directly beneficially own shares of Common Stock of the Issuer. 5. (a) Name of Person Filing: Irwin Lieber (b) Address of Principal Business Office, or if none, Residence: 80 Cuttermill Road, Suite 311, Great Neck, NY 11021 (c) Citizenship: United States (d) Title of Class of Securities: Common Stock, par value $.15 per share (e) CUSIP Number: 746375 20 3 6. (a) Name of Person Filing: Barry Fingerhut (b) Address of Principal Business Office, or if none, Residence: 80 Cuttermill Road, Suite 311, Great Neck, NY 11021 (c) Citizenship: United States (d) Title of Class of Securities: Common Stock, par value $.15 per share (e) CUSIP Number: 746375 20 3 7. (a) Name of Person Filing: Barry Rubenstein (b) Address of Principal Business Office, or if none, Residence: 68 Wheatley Road, Brookville, New York 11545 (c) Citizenship: United States (d) Title of Class of Securities: Common Stock, par value $.15 per share (e) CUSIP Number: 746375 20 3 8. (a) Name of Person Filing: Nancy Casey (b) Address of Principal Business Office, or if none, Residence: 80 Cuttermill Road, Suite 311, Great Neck, NY 11021 (c) Citizenship: United States (d) Title of Class of Securities: Common Stock, par value $.15 per share (e) CUSIP Number: 746375 20 3 9. (a) Name of Person Filing: Jonathan Lieber (b) Address of Principal Business Office, or if none, Residence: 80 Cuttermill Road, Suite 311, Great Neck, NY 11021 (c) Citizenship: United States (d) Title of Class of Securities: Common Stock, par value $.15 per share (e) CUSIP Number: 746375 20 3 10. (a) Name of Person Filing: Seth Lieber (b) Address of Principal Business Office, or if none, Residence: 80 Cuttermill Road, Suite 311, Great Neck, NY 11021 (c) Citizenship: United States (d) Title of Class of Securities: Common Stock, par value $.15 per share (e) CUSIP Number: 746375 20 3 ---------------------------- --------------------- CUSIP No. 746375 20 3 13G Page 8 of 14 Pages ---------------------------- --------------------- Item 3. If this statement is filed pursuant to Rule 13d-1(b), or 13d-2(b) or (c), check whether the person filing is a: /x/ Not Applicable (a) / / Broker or dealer registered under Section 15 of the Exchange Act. (b) / / Bank as defined in section 3(a)(6) of the Exchange Act. (c) / / Insurance company as defined in section 3(a)(19) of the Exchange Act. (d) / / Investment company registered under section 8 of the Investment Company Act. (e) / / An investment adviser in accordance with Rule 13d-1(b)(1)(ii)(E). (f) / / An employee benefit plan or endowment fund in accordance with Rule 13d-1(b)(1)(ii)(F). (g) / / A parent holding company or control person in accordance with Rule 13d-1(b)(1)(ii)(G). (h) / / A savings association as defined in Section 3(b) of the Federal Deposit Insurance Act. (i) / / A church plan that is excluded from the definition of an investment company under Section 3(c)(14) of the Investment Company Act. (j) / / Group, in accordance with Rule 13d-1(b)(1)(ii)(J). Item 4. Ownership - The percentages of beneficial ownership shown below are based on 1,798,280 shares of Common Stock based on (a) 494,306 shares of Common Stock outstanding as of March 12, 2003 as reported in the Issuer's Annual Report on Form 10-KSB as filed with the Securities and Exchange Commission and (b) 1,303,974 shares of Common Stock issued on April 29, 2003 upon the closing of a private placement. 1. Wheatley Partners III, L.P. (a) Amount Beneficially Owned: 258,065 shares. (b) Percent of Class: 14.4%. (c) Number of shares as to which such person has: (i) sole power to vote or direct the vote: 180,542 shares. (ii) shared power to vote or direct the vote: 77,523 shares. (iii) sole power to dispose or direct the disposition of: 180,542 shares. (iv) shared power to dispose or direct the disposition of: 77,523 shares. 2. Wheatley Associates III, L.P. (a) Amount Beneficially Owned: 258,065 shares. (b) Percent of Class: 14.4%. (c) Number of shares as to which such person has: (i) sole power to vote or direct the vote: 38,135 shares. (ii) shared power to vote or direct the vote: 219,930 shares. (iii) sole power to dispose or direct the disposition of: 38,135 shares. (iv) shared power to dispose or direct the disposition of: 219,930 shares. ---------------------------- --------------------- CUSIP No. 746375 20 3 13G Page 9 of 14 Pages ---------------------------- --------------------- 3. Wheatley Foreign Partners III, L.P. (a) Amount Beneficially Owned: 258,065 shares. (b) Percent of Class: 14.4%. (c) Number of shares as to which such person has: (i) sole power to vote or direct the vote: 39,388 shares. (ii) shared power to vote or direct the vote: 218,677 shares. (iii) sole power to dispose or direct the disposition of: 39,388 shares. (iv) shared power to dispose or direct the disposition of: 218,677 shares. 4. Wheatley Partners III, LLC (a) Amount Beneficially Owned: 258,065 shares. (b) Percent of Class: 14.4%. (c) Number of shares as to which such person has: (i) sole power to vote or direct the vote: 0 shares. (ii) shared power to vote or direct the vote: 258,065 shares. (iii) sole power to dispose or direct the disposition of: 0 shares. (iv) shared power to dispose or direct the disposition of: 258,065 shares. The following individuals or entities are identified in this Schedule 13G due to their relationships with one or more of the Reporting Persons disclosed above. The following persons or entities are not Reporting Persons for purposes of this Schedule 13G. Members of Wheatley Partners III, LLC, the general partner of Wheatley Partners III, L.P., who do not directly beneficially own shares of Common Stock of the Issuer: 5. Irwin Lieber (a) Amount Beneficially Owned: 258,065 shares. (b) Percent of Class: 14.4%. (c) Number of shares as to which such person has: (i) sole power to vote or direct the vote: 0 shares. (ii) shared power to vote or direct the vote: 258,065 shares. (iii) sole power to dispose or direct the disposition of: 0 shares. (iv) shared power to dispose or direct the disposition of: 258,065 shares. 6. Barry Fingerhut (a) Amount Beneficially Owned: 258,065 shares. (b) Percent of Class: 14.4%. (c) Number of shares as to which such person has: (i) sole power to vote or direct the vote: 0 shares. (ii) shared power to vote or direct the vote: 258,065 shares. (iii) sole power to dispose or direct the disposition of: 0 shares. (iv) shared power to dispose or direct the disposition of: 258,065 shares. 7. Barry Rubenstein (a) Amount Beneficially Owned: 258,065 shares. (b) Percent of Class: 14.4%. (c) Number of shares as to which such person has: (i) sole power to vote or direct the vote: 0 shares. (ii) shared power to vote or direct the vote: 258,065 shares. (iii) sole power to dispose or direct the disposition of: 0 shares. (iv) shared power to dispose or direct the disposition of: 258,065 shares. ---------------------------- --------------------- CUSIP No. 746375 20 3 13G Page 10 of 14 Pages ---------------------------- --------------------- 8. Nancy Casey (a) Amount Beneficially Owned: 258,065 shares. (b) Percent of Class: 14.4%. (c) Number of shares as to which such person has: (i) sole power to vote or direct the vote: 0 shares. (ii) shared power to vote or direct the vote: 258,065 shares. (iii) sole power to dispose or direct the disposition of: 0 shares. (iv) shared power to dispose or direct the disposition of: 258,065 shares. 9. Jonathan Lieber (a) Amount Beneficially Owned: 258,065 shares. (b) Percent of Class: 14.4%. (c) Number of shares as to which such person has: (i) sole power to vote or direct the vote: 0 shares. (ii) shared power to vote or direct the vote: 258,065 shares. (iii) sole power to dispose or direct the disposition of: 0 shares. (iv) shared power to dispose or direct the disposition of: 258,065 shares. 10. Seth Lieber (a) Amount Beneficially Owned: 258,065 shares. (b) Percent of Class: 14.4%. (c) Number of shares as to which such person has: (i) sole power to vote or direct the vote: 0 shares. (ii) shared power to vote or direct the vote: 258,065 shares. (iii) sole power to dispose or direct the disposition of: 0 shares. (iv) shared power to dispose or direct the disposition of: 258,065 shares. Item 5. Ownership of Five Percent or Less of a Class. If this statement is being filed to report the fact that as of the date hereof the reporting person has ceased to be the beneficial owner of more than five percent of the class of securities, check the following [ ]. Item 6. Ownership of More than Five Percent on Behalf of Another Person. Not Applicable. Item 7. Identification and Classification of the Subsidiary Which Acquired the Security Being Reported on by the Parent Holding Company. Not Applicable. Item 8. Identification and Classification of Members of the Group. Not Applicable. ---------------------------- --------------------- CUSIP No. 746375 20 3 13G Page 11 of 14 Pages ---------------------------- --------------------- Item 9. Notice of Dissolution of Group. Not Applicable. Item 10. Certification. By signing below, we certify that, to the best of our knowledge and belief, the securities referred to above were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect. [The remainder of this page was intentionally left blank.] ---------------------------- --------------------- CUSIP No. 746375 20 3 13G Page 12 of 14 Pages ---------------------------- --------------------- SIGNATURES After reasonable inquiry and to the best of his knowledge and belief, each of the undersigned certifies that the information set forth in this statement is true, complete and correct. Dated: May 6, 2003 WHEATLEY PARTNERS III, L.P. By: Wheatley Partners III, LLC, General Partner By: /s/ Barry Rubenstein ------------------------ Name: Barry Rubenstein Title: Chief Executive Officer WHEATLEY ASSOCIATES III, L.P. By: Wheatley Partners III, LLC, General Partner By: /s/ Barry Rubenstein ------------------------ Name: Barry Rubenstein Title: Chief Executive Officer WHEATLEY FOREIGN PARTNERS III, L.P. By: Wheatley Partners III, LLC, General Partner By: /s/ Barry Rubenstein ------------------------ Name: Barry Rubenstein Title: Chief Executive Officer WHEATLEY PARTNERS III, LLC By: /s/ Barry Rubenstein ------------------------ Name: Barry Rubenstein Title: Chief Executive Officer ---------------------------- --------------------- CUSIP No. 746375 20 3 13G Page 13 of 14 Pages ---------------------------- --------------------- Exhibit Index The following document is filed herewith: (a) Joint Filing Agreement dated as of May 6, 2003 among Wheatley Partners III, L.P., Wheatley Associates III, L.P., Wheatley Foreign Partners III, L.P., and Wheatley Partners III, LLC. ---------------------------- --------------------- CUSIP No. 746375 20 3 13G Page 14 of 14 Pages ---------------------------- --------------------- EXHIBIT A JOINT FILING AGREEMENT The undersigned hereby agree that the Statement on Schedule 13G, dated May 6, 2003 with respect to the shares of Common Stock of Puroflow Incorporated and any further amendments thereto executed by each and any of us shall be filed on behalf of each of us pursuant to and in accordance with the provisions of Rule 13d-1(k)(1) under the Securities Exchange Act of 1934, as amended. This Agreement may be executed in separate counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument. Dated: May 6, 2003 WHEATLEY PARTNERS III, L.P. By: Wheatley Partners III, LLC, General Partner By: /s/ Barry Rubenstein ------------------------ Name: Barry Rubenstein Title: Chief Executive Officer WHEATLEY ASSOCIATES III, L.P. By: Wheatley Partners III, LLC, General Partner By: /s/ Barry Rubenstein ------------------------ Name: Barry Rubenstein Title: Chief Executive Officer WHEATLEY FOREIGN PARTNERS III, L.P. By: Wheatley Partners III, LLC, General Partner By: /s/ Barry Rubenstein ------------------------ Name: Barry Rubenstein Title: Chief Executive Officer WHEATLEY PARTNERS III, LLC By: /s/ Barry Rubenstein ------------------------ Name: Barry Rubenstein Title: Chief Executive Officer