FORM 4 OMB APPROVAL
----------------------------
OMB NUMBER: 3235-0287
Expires: February 1, 2001
Estimated average burden
hours per response.....1.0
----------------------------
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 4
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
[ ] Check this box if no longer
subject to Section 16. Form 4 or
Form 5 obligations may
continue. See instruction 1(b).
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
________________________________________________________________________________
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: HDGC
________________________________________________________________________________
3. IRS or Social Security Number of Reporting Person, (Voluntary)
________________________________________________________________________________
4. Statement for Month/Year
07/02
________________________________________________________________________________
5. If Amendment, Date of Original (Month/Year)
________________________________________________________________________________
6. Relationship of Reporting Person to Issuer
(Check all applicable)
[X] Director [_] 10% Owner
[X] Officer (give title below) [_] Other (specify below)
Chairman & Chief Executive Officer
________________________________________________________________________________
================================================================================
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.
Transaction (Instr. 3, 4, and 5) Beneficially Direct Nature of
2. Code ------------------------------- Owned at End (D) or Indirect
1. Transaction (Instr. 8) (A) of Month Indirect Beneficial
Title of Security Date ------------ Amount or Price (Instr. 3 (I) Ownership
(Instr. 3) (mm/dd/yy) Code V (D) and 4) (Instr.4) (Instr. 4)
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
====================================================================================================================================
Reminder: Report on a separate line for each class of securities beneficially
owned directly or indirectly.
(over)
* See footnote 2 on Table II.
(Print or Type Responses)
SFL 1474 (3/91)
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 $1.34 Common 223,880
Debentures (8) 3/10/98 A (1) 3/10/98 3/15/03 Stock (8) D
------------------------------------------------------------------------------------------------------------------------------------
$1.34 Common 33,921
Warrants (8) 3/10/98 A (1) 3/10/98 3/15/05 Stock (8) D
------------------------------------------------------------------------------------------------------------------------------------
Common
Warrants $2.279 3/10/98 A (1) 3/10/98 3/15/05 Stock 31,579 D
------------------------------------------------------------------------------------------------------------------------------------
5% Convertible
Senior Secured $1.34 Common 53,816
Debentures (8) 6/12/98 A (2) 6/12/98 3/15/03 Stock (8) D
------------------------------------------------------------------------------------------------------------------------------------
$1.34 Common 8,153
Warrants (8) 6/12/98 A (2) 6/12/98 3/15/05 Stock (8) D
------------------------------------------------------------------------------------------------------------------------------------
Common
Warrants $2.279 6/12/98 A (2) 6/12/98 3/15/05 Stock 7,590 D
------------------------------------------------------------------------------------------------------------------------------------
Non-qualified Common
Stock Options $2.375 2/19/98 A (3) 2/19/08 Stock 1,000,000 D
------------------------------------------------------------------------------------------------------------------------------------
5% Convertible
Senior Secured Common 3,560
Debentures $1.1312 4/1/99 A (4) 4/1/99 3/15/03 Stock (8) D
------------------------------------------------------------------------------------------------------------------------------------
Non-qualified Common
Stock Options $1.125 4/12/99 A (5) 4/12/00 4/12/09 Stock 100,000 D
------------------------------------------------------------------------------------------------------------------------------------
5% Convertible
Senior Secured Common 1,681
Debentures $2.4250 7/1/99 A (4) 7/1/99 3/15/03 Stock (8) D
------------------------------------------------------------------------------------------------------------------------------------
5% Convertible
Senior Secured Common
Debentures $2.3063 10/1/99 A (4) 10/1/99 3/15/03 Stock 1,789 D
------------------------------------------------------------------------------------------------------------------------------------
Non-qualified Common
Stock Options $1.875 2/17/00 A (5) 2/17/01 2/17/10 Stock 125,000 D
------------------------------------------------------------------------------------------------------------------------------------
5% Convertible
Senior Secured Common
Debentures $1.722 4/1/00 A (4) 4/1/00 3/15/03 Stock 1,440 D
------------------------------------------------------------------------------------------------------------------------------------
5% Convertible
Senior Secured $1.34 Common (111,939)
Debentures (8) 3/10/98 A (6) 3/10/98 3/15/03 Stock (8) D
------------------------------------------------------------------------------------------------------------------------------------
$1.34 Common (16,960)
Warrants (8) 3/10/98 A (6) 3/10/98 3/15/05 Stock (8) D
------------------------------------------------------------------------------------------------------------------------------------
Common
Warrants $2.279 3/10/98 A (6) 3/10/98 3/15/05 Stock (15,789) D
------------------------------------------------------------------------------------------------------------------------------------
5% Convertible
Senior Secured $1.34 Common (26,907)
Debentures (8) 6/12/98 A (6) 6/12/98 3/15/03 Stock (8) D
------------------------------------------------------------------------------------------------------------------------------------
$1.34 Common (4,076)
Warrants (8) 6/12/98 A (6) 6/12/98 3/15/05 Stock (8) D
------------------------------------------------------------------------------------------------------------------------------------
Common
Warrants $2.279 6/12/98 A (6) 6/12/98 3/15/05 Stock (3,795) D
------------------------------------------------------------------------------------------------------------------------------------
Non-qualified Common
Stock Options $1.1125 6/29/00 A (5) 6/29/01 6/29/10 Stock 200,000 D
------------------------------------------------------------------------------------------------------------------------------------
5% Convertible
Senior Secured Common
Debentures $1.1125 7/1/00 A (4) 7/01/00 3/15/03 Stock 2,087 D
------------------------------------------------------------------------------------------------------------------------------------
5% Convertible
Senior Secured $1.34 Common (3,731)
Debentures (8) 6/12/98 A (7) 6/12/98 3/15/03 Stock (8) D
------------------------------------------------------------------------------------------------------------------------------------
5% Convertible
Senior Secured $1.34 Common (3,731)
Debentures (8) 6/12/98 A (7) 6/12/98 3/15/03 Stock (8) D
------------------------------------------------------------------------------------------------------------------------------------
5% Convertible
Senior Secured $1.34 Common (3,731)
Debentures (8) 6/12/98 A (7) 6/12/98 3/15/03 Stock (8) D
------------------------------------------------------------------------------------------------------------------------------------
5% Convertible
Senior Secured Common
Debentures $ .9071 10/1/00 A (4) 10/01/00 3/15/03 Stock 2,592 D
------------------------------------------------------------------------------------------------------------------------------------
5% Convertible
Senior Secured $1.34 Common (3,731)
Debentures (8) 6/12/98 A (7) 6/12/98 3/15/03 Stock (8) D
------------------------------------------------------------------------------------------------------------------------------------
5% Convertible
Senior Secured $1.34 Common (3,731)
Debentures (8) 6/12/98 A (7) 6/12/98 3/15/03 Stock (8) D
------------------------------------------------------------------------------------------------------------------------------------
5% Convertible
Senior Secured $1.34 Common (3,731)
Debentures (8) 6/12/98 A (7) 6/12/98 3/15/03 Stock (8) D
------------------------------------------------------------------------------------------------------------------------------------
5% Convertible
Senior Secured Common
Debentures $ .6258 01/01/01 A (4) 01/01/01 3/15/03 Stock 3,503 D
------------------------------------------------------------------------------------------------------------------------------------
5% Convertible
Senior Secured Common
Debentures $1.03 04/01/01 A (4) 04/01/01 3/15/03 Stock 2,156 D
------------------------------------------------------------------------------------------------------------------------------------
5% Convertible
Senior Secured Common
Debentures $2.22 07/01/01 A (4) 07/01/01 3/15/03 Stock 1,013 D
------------------------------------------------------------------------------------------------------------------------------------
5% Convertible
Senior Secured Common
Debentures $2.22 10/01/01 A (4) 10/01/01 3/15/03 Stock 1,026 D
------------------------------------------------------------------------------------------------------------------------------------
5% Convertible
Senior Secured Common
Debentures $1.86 01/01/02 A (4) 01/01/02 3/15/03 Stock 1,239 D
------------------------------------------------------------------------------------------------------------------------------------
5% Convertible
Senior Secured Common
Debentures $2.02 04/01/02 A (4) 04/01/02 3/15/03 Stock 1,155 D
------------------------------------------------------------------------------------------------------------------------------------
5% Convertible
Senior Secured Common
Debentures $1.72 07/01/02 A (4) 07/01/02 3/15/03 Stock 1,373 1,606,701 D
====================================================================================================================================
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 (33,921 shares of which are presently exercisable at
$1.34 per share and 31,579 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 (8,153 shares of which are presently exercisable at
$1.34 per share and 7,590 shares of which are presently exercisable at
$2.279 per share)
(3) Options vest quarterly, with 62,500 options vesting every quarter effective
May 1, 1998.
(4) Certain quarterly interest payments are paid in the form of convertible
debentures.
(5) Options vest 25% annually.
(6) Transferred without consideration as part of a settlement agreement
contained within a QDRO.
(7) Transferred as gift without consideration.
(8) Adjusted to reflect results of an anti-dilution calculation contained in
the instrument.
/s/ Michael K. Reicher July 20, 2002
--------------------------------------------- -----------------------
**Signature of Reporting Person Date
** 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.
Page 2