UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

SCHEDULE 13D/A

 

Under the Securities Exchange Act of 1934

(Amendment No. 1)*

 

 

 

Zivo Bioscience, Inc.

(Name of Issuer)

 

 

Common stock, $.001 par value

(Title of Class of Securities)

 

 

98978N 101

(CUSIP Number)

 

 

Timothy R. Damschroder

Bodman PLC

201 S. Division, Suite 400

Ann Arbor, MI 48104

(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)

 

November 17, 2017

(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 that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. o

 

Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See §240.13d-7 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 ("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).

 

 

 

 

 

 

  1.

Names of Reporting Persons.

Strome Mezzanine Fund, LP

 
  2.

Check the Appropriate Box if a Member of a Group (See Instructions)

 

 
    (a)      
    (b)  o    
  3. SEC Use Only  
  4.

Source of Funds (See Instructions)

OO

 
  5. Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)     o  
  6.

Citizenship or Place of Organization

Delaware

 

Number of

Shares

Beneficially

Owned by

Each

Reporting

Person With

 

 

 

7. Sole Voting Power        0

 

 

 

8. Shared Voting Power      40,750,000

 

 

9. Sole Dispositive Power     0

 

 

10. Shared Dispositive Power   40,750,000

 

 

 

  11. Aggregate Amount Beneficially Owned by Each Reporting Person 22.4%

 

  12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)   o
  13. Percent of Class Represented by Amount in Row (11) 22.4%

 

  14.

Type of Reporting Person (See Instructions)

PN

           

 

 

 

 

  1.

Names of Reporting Persons.

Strome Alpha Fund, L.P.

 
  2.

Check the Appropriate Box if a Member of a Group (See Instructions)

 

 
    (a)      
    (b)  o    
  3. SEC Use Only  
  4.

Source of Funds (See Instructions)

OO

 
  5. Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)     o  
  6.

Citizenship or Place of Organization

California

 

Number of

Shares

Beneficially

Owned by

Each

Reporting

Person With

 

 

 

7. Sole Voting Power        0

 

 

8. Shared Voting Power      40,750,000

 

 

 

9. Sole Dispositive Power     0

 

 

 

10. Shared Dispositive Power   40,750,000

 

 

  11. Aggregate Amount Beneficially Owned by Each Reporting Person 22.4%
  12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)   o

 

  13. Percent of Class Represented by Amount in Row (11) 22.4%
  14.

Type of Reporting Person (See Instructions)

PN

           

 

 

 

 

 

 

 

  1.

Names of Reporting Persons.

Strome Investment Management, LP

 
  2. Check the Appropriate Box if a Member of a Group (See Instructions)  
    (a)  □    
    (b)  □    
  3. SEC Use Only  
  4.

Source of Funds (See Instructions)

AF

 
  5. Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)     o  
  6.

Citizenship or Place of Organization

Delaware

 

Number of

Shares

Beneficially

Owned by

Each

Reporting

Person With

 

 

 

7. Sole Voting Power        0

 

 

8. Shared Voting Power      40,750,000

 

 

 

9. Sole Dispositive Power     0

 

 

 

10. Shared Dispositive Power   40,750,000

 

 

 

  11. Aggregate Amount Beneficially Owned by Each Reporting Person 22.4%
  12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)   o

 

  13. Percent of Class Represented by Amount in Row (11) 22.4%

 

  14.

Type of Reporting Person (See Instructions)

PN

 

           

 

 

 

 

  1.

Names of Reporting Persons.

Strome Group, Inc.

 
  2. Check the Appropriate Box if a Member of a Group (See Instructions)  
    (a)  □    
    (b)  □    
  3. SEC Use Only  
  4.

Source of Funds (See Instructions)

AF

 
  5. Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)     o  
  6.

Citizenship or Place of Organization

Delaware

 

Number of

Shares

Beneficially

Owned by

Each

Reporting

Person With

 

 

 

7. Sole Voting Power        0

 

8. Shared Voting Power      40,750,000

 

 

9. Sole Dispositive Power     0

 

 

10. Shared Dispositive Power   40,750,000

 

 

  11. Aggregate Amount Beneficially Owned by Each Reporting Person 22.4%
  12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)   o
  13. Percent of Class Represented by Amount in Row (11) 22.4%
  14.

Type of Reporting Person (See Instructions)

CO

           

 

 

 

 

  1.

Names of Reporting Persons.

Mark E. Strome

 
  2. Check the Appropriate Box if a Member of a Group (See Instructions)  
    (a)  □    
    (b)  □    
  3. SEC Use Only  
  4.

Source of Funds (See Instructions)

AF

 
  5. Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)     o  
  6.

Citizenship or Place of Organization

United States

 

Number of

Shares

Beneficially

Owned by

Each

Reporting

Person With

 

 

 

7. Sole Voting Power        0

 

 

8. Shared Voting Power      40,750,000

 

 

9. Sole Dispositive Power     0

 

 

10. Shared Dispositive Power   40,750,000

 

 

  11. Aggregate Amount Beneficially Owned by Each Reporting Person 22.4%
  12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)   o
  13. Percent of Class Represented by Amount in Row (11) 22.4%
  14.

Type of Reporting Person (See Instructions)

IN

           

 

 

 

Item 1. Security and Issuer

 

This statement on Schedule 13D/A relates to the common stock, $0.001 par value (the “Common Stock”), of Zivo Bioscience, Inc., a Michigan corporation (the “Issuer”). The Issuer’s principal offices are located at 2804 Orchard Lake Road, Suite 202, Keego Harbor, MI 48320.

 

Item 2. Identity and Background

 

This statement is being filed by the following persons (each a “Reporting Person” and, collectively, the “Reporting Persons”):

(i)Strome Mezzanine Fund, LP, which is a Delaware limited partnership (“Strome Mezzanine”);
(ii)Strome Alpha Fund, L.P., which is a California limited partnership (“Strome Alpha”);
(iii)Strome Investment Management, LP, which is a Delaware limited partnership and the general partner of each of Strome Mezzanine and Strome Alpha;
(iv)Strome Group, Inc., which is a Delaware corporation and the general partner of Strome Investment Management, LP; and
(v)Mark E. Strome, who is a United States citizen and the sole director, president, and chief executive officer of Strome Group, Inc.

The principal business address for each of these entities and Mr. Strome is 100 Wilshire Boulevard, Suite 1750, Santa Monica, CA 90401. The principal business of each of Strome Mezzanine, Strome Alpha and Strome Investment Management, LP is to invest in both public and private securities. The principal business of Strome Group, Inc. is to act as a holding company for business investments, and the principal occupation of Mr. Strome is serving as the President of the Strome Group, Inc.

During the last five years, none of the Reporting Persons (i) have been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors) or (ii) was a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to a judgment, decree, or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws.

Item 3. Source and Amount of Funds or Other Consideration

As of the date hereof, Strome Mezzanine may be deemed to beneficially own 27,166,667 shares of Common Stock, which are issuable as follows: (i) 10,000,000 are issuable upon conversion of the Ninth Amended and Restated Senior Secured Convertible Promissory Note dated March 1, 2017 made by the Issuer (the “Note”) in favor of HEP Investments LLC ( “HEP”) pursuant to a Participation Agreement between HEP and Strome Mezzanine dated July 21, 2017 attached as Exhibit 2 and incorporated by this reference, as amended by the Amendment to Participation Agreement, Guaranty, Warrants and Amended and Restated Registration Rights Agreement dated November 15, 2017 attached as Exhibit 3 and incorporated by this reference (the “Amendment,” and the Participation Agreement as so amended, the “Participation Agreement”), and (ii) 17,166,667 are issuable upon exercise of warrants issuable to Strome Mezzanine by the Issuer. Strome Mezzanine paid its entire $1.0 million obligation under the

 

 

Participation Agreement from investment capital in two payments of $500,000 each on July 21, 2017 and September 20, 2017.

As of the date hereof, Strome Alpha may be deemed to beneficially own 13,583,333 shares of Common Stock, which are issuable as follows: (1) 5,000,000 are issuable upon conversion of the Note pursuant to the Participation Agreement and (ii) 8,583,333 are issuable upon exercise of warrants issuable to Strome Alpha by the Issuer. Strome Alpha paid its entire $500,000 obligation under the Participation Agreement from investment capital on November 17, 2017.

Item 4. Purpose of Transaction

On July 21, 2017, Strome Mezzanine and HEP entered into the Participation Agreement, which was amended on November 15, 2017 to add Strome Alpha as a party. Under the terms of the Participation Agreement, Strome Mezzanine purchased a participation right for the amount of $1.0 million in the Note, and Strome Alpha purchased a participation right for the amount of $500,000 in the Note. The payments pursuant to the Participation Agreement were paid in three equal tranches; the first two tranches of $500,000 were paid by Strome Mezzanine and the third tranche of $500,000 was paid by Strome Alpha. Upon each payment, Strome Mezzanine or Strome Alpha, as applicable, received the right to convert its payment to 5,000,000 shares of Common Stock, and received immediately exercisable warrants for 250,000 shares of Common Stock. After the final payment, Strome Mezzanine received an immediately exercisable warrant for an additional 16,666,667 shares of Common Stock and Strome Alpha received an immediately exercisable warrant for an additional 8,333,333 shares of Common Stock. To induce Strome Mezzanine and Strome Alpha to enter into the Participation Agreement, the member and manager of HEP guaranteed certain of the Issuer’s obligations and liabilities to repay the principal of the Note in the event that the Issuer becomes insolvent, dissolves or files for federal bankruptcy protection over the next two years. The Guaranty dated July 21, 2017 made by Laith Yaldoo in favor of Strome Mezzanine is attached hereto as Exhibit 5 and is incorporated by this reference (the “Guaranty”). The Guaranty was amended to guarantee the participation of Strome Alpha under the Participation Agreement, pursuant to the Amendment.

The Reporting Persons are participating in the Note and acquiring the warrants for investment purposes. Depending on their continuing evaluation of the business and prospects of the Issuer, the Reporting Persons may acquire or dispose of additional shares, or rights to receive shares, of the Issuer.

Except as set forth above, the Reporting Persons do not have any present plans which relate to or would result in:

(i)The acquisition by any person of additional securities of the issuer, or the disposition of securities of the issuer;
(ii)An extraordinary corporate transaction, such as a merger, reorganization or liquidation, involving the issuer or any of its subsidiaries;
(iii)A sale or transfer of a material amount of assets of the issuer or any of its subsidiaries;
(iv)Any change in the present board of directors or management of the issuer, including any plans or proposals to change the number or term of directors or to fill any existing vacancies on the board;

 

 

(v)Any material change in the present capitalization or dividend policy of the issuer;
(vi)Any other material change in the issuer's business or corporate structure, including but not limited to, if the issuer is a registered closed-end investment company, any plans or proposals to make any changes in its investment policy for which a vote is required by section 13 of the Investment Company Act of 1940;
(vii)Changes in the issuer's charter, bylaws or instruments corresponding thereto or other actions which may impede the acquisition of control of the issuer by any person;
(viii)Causing a class of securities of the issuer to be delisted from a national securities exchange or to cease to be authorized to be quoted in an inter-dealer quotation system of a registered national securities association;
(ix)A class of equity securities of the issuer becoming eligible for termination of registration pursuant to section 12(g)(4) of the Act; or
(x)Any action similar to any of those enumerated above.

Item 5. Interest in Securities of the Issuer

(a–b) The aggregate number and percentage of the shares of Common Stock outstanding beneficially owned by each Reporting Person set forth below and on pages 2-6 hereof are based on 140,906,061 shares of Common Stock outstanding as of October 19, 2017.

Reporting Person Amount beneficially owned Percent of class Sole power to vote or direct the vote Shared power to vote or direct the vote Sole power to dispose or to direct the disposition of Shared power to dispose or direct the disposition of Amount of beneficially owned securities subject to right to acquire
Strome Mezzanine Fund, LP 40,750,000 22.4% 0 40,750,000 0 40,750,000 40,750,000
Strome Alpha Fund, L.P. 40,750,000 22.4% 0 40,750,000 0 40,750,000 40,750,000
Strome Investment Management, LP 40,750,000 22.4% 0 40,750,000 0 40,750,000 40,750,000
Strome Group, Inc. 40,750,000 22.4% 0 40,750,000 0 40,750,000 40,750,000
Mark E. Strome 40,750,000 22.4% 0 40,750,000 0 40,750,000 40,750,000

 

(c) On November 17, 2017, pursuant to the Participation Agreement, Strome Alpha purchased $500,000 of an undivided interest in the Note and in exchange received the right to convert its interest in the Note to shares of Common Stock at $0.10 per share, for a total of 5,000,000 shares. The Issuer issued to Strome Alpha, in the same transaction, an immediately exercisable warrant for 250,000 shares with an exercise price of $0.10 per share. Pursuant to the Participation Agreement, upon the payment by Strome Alpha of this third tranche, the Issuer (i) issued to Strome Mezzanine an immediately exercisable warrant for 16,666,667 shares with an exercise price of $0.10 per share, and (ii) issued to Strome Alpha an immediately exercisable warrant for 8,333,333 shares with an exercise price of $0.10 per share.

(d) None.

(e) Not applicable.

 

 

Item 6.Contracts, Arrangements, Understandings or Relationships With Respect to the Securities of the Issuer

 

Item 4 above summarizes provisions of the Participation Agreement, the Amendment, the Note and the Guaranty and is incorporated herein by reference. Copies of the Participation Agreement, the Amendment, the Note and the Guaranty are filed as exhibits to this Schedule 13D/A and are incorporated by reference.

Strome Mezzanine and Strome Alpha intend to act together to pursue a common strategy of acquisition or disposition with respect to their investment in the Issuer. Such understanding has not been reduced to a written agreement.

Item 7. Material to be Filed As Exhibits

Exhibit Number Description
1 Joint Filing Agreement
2 Participation Agreement dated July 21, 2017 by and between HEP Investments, LLC and Strome Mezzanine Fund, LP, incorporated by reference from Exhibit 2 to Strome Mezzanine’s Schedule 13D filed with the SEC on July 31, 2017
3 Amendment to Participation Agreement, Guaranty, Warrants and Amended and Restated Registration Rights Agreement dated November 15, 2017 by and among Strome Mezzanine Fund LP, Strome Alpha Fund, L.P., HEP Investments, LLC, Zivo Bioscience, Inc. and Laith Yaldoo.
4 Ninth Amended and Restated Senior Secured Convertible Promissory Note dated March 1, 2017 made by Zivo Bioscience, Inc. in favor of HEP Investments, LLC, incorporated by reference from Exhibit 10.43 to Zivo Bioscience, Inc.’s Form 8-K filed with the SEC on March 6, 2017
5 Guaranty dated July 21, 2017 made by Laith Yaldoo in favor of Strome Mezzanine Fund, incorporated by reference from Exhibit 4 to Strome Mezzanine’s Schedule 13D filed with the SEC on July 31, 2017

 

 

 

SIGNATURE

 

After reasonable inquiry, and to the best of my knowledge and belief, the undersigned hereby certifies that the information set forth in this statement is true, complete and correct.

 

Date: November 21, 2017

Strome Mezzanine Fund, LP

 

By: Strome Investment Management, LP

Its: General Partner

 

By: Strome Group, Inc.

Its: General Partner

 

By: /s/ Mark E. Strome

Name: Mark E. Strome

Its: President

 

Strome Alpha Fund, L.P.

 

By: Strome Investment Management, LP

Its: General Partner

 

By: Strome Group, Inc.

Its: General Partner

 

By: /s/ Mark E. Strome

Name: Mark E. Strome

Its: President

 

Strome Investment Management, LP

 

By: Strome Group, Inc.

Its: General Partner

 

By: /s/ Mark E. Strome

Name: Mark E. Strome

Its: President

 

Strome Group, Inc.

 

By: /s/ Mark E. Strome

Name: Mark E. Strome

Its: President

 

/s/ Mark E. Strome

Mark E. Strome