Sec Form 13D Filing - Outerbridge Capital Management LLC filing for ALLOT LTD (ALLT) - 2022-02-23

Insider filing report for Changes in Beneficial Ownership

  • Schedule 13G & 13D forms are used to report a party's ownership of stock which exceeds 5% of a company's total stock issue.
  • Schedule 13G is a shorter version of Schedule 13D with fewer reporting requirements.
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

SCHEDULE 13D

(Rule 13d-101)

 

INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT

TO § 240.13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO

§ 240.13d-2(a)

 

(Amendment No. 4)1

 

Allot Ltd.

(Name of Issuer)

 

Common Stock, par value ILS 0.10 per share

(Title of Class of Securities)

 

M0854Q105

(CUSIP Number)

 

Outerbridge Capital Management, LLC

767 Third Avenue, 11th Floor

New York, New York 10017

(347) 493-0350

 

Andrew Freedman, Esq.

Olshan Frome Wolosky LLP

1325 Avenue of the Americas

New York, New York 10019

(212) 451-2300

(Name, Address and Telephone Number of Person

Authorized to Receive Notices and Communications)

 

February 18, 2022

(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 ☐.

 

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.

 

_______________

1              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).

  

 

CUSIP No. M0854Q105

 

  1   NAME OF REPORTING PERSON  
         
       

Outerbridge Capital Management, LLC

  
  2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) ☒
        (b) ☐
           
  3   SEC USE ONLY    
           
           
  4   SOURCE OF FUNDS  
         
       

AF, OO

  
  5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)     ☐
       
           
  6   CITIZENSHIP OR PLACE OF ORGANIZATION  
         
        Delaware  
NUMBER OF   7   SOLE VOTING POWER  
SHARES          
BENEFICIALLY         0  
OWNED BY   8   SHARED VOTING POWER  
EACH          
REPORTING         3,756,991*  
PERSON WITH   9   SOLE DISPOSITIVE POWER  
         
          0  
    10   SHARED DISPOSITIVE POWER  
           
          2,989,249*  
  11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON  
         
        3,756,991*  
  12   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES     ☐
       
           
  13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)  
         
        10.3%  
  14   TYPE OF REPORTING PERSON  
         
        OO, IA  

  

* Includes 1,270,000 Ordinary Shares underlying certain call options currently exercisable as described in more detail in Item 6.

  

2  

CUSIP No. M0854Q105

 

  1   NAME OF REPORTING PERSON  
         
       

Outerbridge Partners, LP

  
  2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) ☒
        (b) ☐
           
  3   SEC USE ONLY    
           
           
  4   SOURCE OF FUNDS  
         
        WC  
  5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)     ☐
       
           
  6   CITIZENSHIP OR PLACE OF ORGANIZATION  
         
        Delaware  
NUMBER OF   7   SOLE VOTING POWER  
SHARES          
BENEFICIALLY         0  
OWNED BY   8   SHARED VOTING POWER  
EACH          
REPORTING         704,104*  
PERSON WITH   9   SOLE DISPOSITIVE POWER  
         
          0  
    10   SHARED DISPOSITIVE POWER  
           
          704,104*  
  11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON  
         
        704,104*  
  12   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES     ☐
       
           
  13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)  
         
        1.9%  
  14   TYPE OF REPORTING PERSON  
         
        PN  

  

* Includes 590,000 Ordinary Shares underlying certain call options currently exercisable as described in more detail in Item 6.

 

3 

CUSIP No. M0854Q105

 

  1   NAME OF REPORTING PERSON  
         
       

Outerbridge Special Opportunities Fund II, LP

  
  2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) ☒
        (b) ☐
           
  3   SEC USE ONLY    
           
           
  4   SOURCE OF FUNDS  
         
        WC  
  5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)     ☐
       
           
  6   CITIZENSHIP OR PLACE OF ORGANIZATION  
         
        Delaware  
NUMBER OF   7   SOLE VOTING POWER  
SHARES          
BENEFICIALLY         0  
OWNED BY   8   SHARED VOTING POWER  
EACH          
REPORTING         141,000  
PERSON WITH   9   SOLE DISPOSITIVE POWER  
         
          0  
    10   SHARED DISPOSITIVE POWER  
           
          141,000  
  11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON  
         
        141,000  
  12   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES     ☐
       
           
  13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)  
         
        Less than 1%  
  14   TYPE OF REPORTING PERSON  
         
        PN  

  

4 

CUSIP No. M0854Q105

 

  1   NAME OF REPORTING PERSON  
         
       

Outerbridge Partners GP, LLC

  
  2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) ☒
        (b) ☐
           
  3   SEC USE ONLY    
           
           
  4   SOURCE OF FUNDS  
         
        AF  
  5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)     ☐
       
           
  6   CITIZENSHIP OR PLACE OF ORGANIZATION  
         
        Delaware  
NUMBER OF   7   SOLE VOTING POWER  
SHARES          
BENEFICIALLY         0  
OWNED BY   8   SHARED VOTING POWER  
EACH          
REPORTING         704,104*  
PERSON WITH   9   SOLE DISPOSITIVE POWER  
         
          0  
    10   SHARED DISPOSITIVE POWER  
           
          704,104*  
  11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON  
         
        704,104*  
  12   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES     ☐
       
           
  13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)  
         
        1.9%  
  14   TYPE OF REPORTING PERSON  
         
        OO  

  

* Includes 590,000 Ordinary Shares underlying certain call options currently exercisable as described in more detail in Item 6.

 

5 

CUSIP No. M0854Q105

 

  1   NAME OF REPORTING PERSON  
         
       

Outerbridge Special Opportunities GP II, LLC

  
  2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) ☒
        (b) ☐
           
  3   SEC USE ONLY    
           
           
  4   SOURCE OF FUNDS  
         
        AF  
  5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)     ☐
       
           
  6   CITIZENSHIP OR PLACE OF ORGANIZATION  
         
        Delaware  
NUMBER OF   7   SOLE VOTING POWER  
SHARES          
BENEFICIALLY         0  
OWNED BY   8   SHARED VOTING POWER  
EACH          
REPORTING         141,000  
PERSON WITH   9   SOLE DISPOSITIVE POWER  
         
          0  
    10   SHARED DISPOSITIVE POWER  
           
          141,000  
  11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON  
         
        141,000  
  12   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES     ☐
       
           
  13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)  
         
        Less than 1%  
  14   TYPE OF REPORTING PERSON  
         
        OO  

  

6 

CUSIP No. M0854Q105

 

  1   NAME OF REPORTING PERSON  
         
       

Rory Wallace

  
  2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) ☒
        (b) ☐
           
  3   SEC USE ONLY    
           
           
  4   SOURCE OF FUNDS  
         
        AF  
  5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)     ☐
       
           
  6   CITIZENSHIP OR PLACE OF ORGANIZATION  
         
        United States of America  
NUMBER OF   7   SOLE VOTING POWER  
SHARES          
BENEFICIALLY         0  
OWNED BY   8   SHARED VOTING POWER  
EACH          
REPORTING         3,756,991*  
PERSON WITH   9   SOLE DISPOSITIVE POWER  
         
          0  
    10   SHARED DISPOSITIVE POWER  
           
          2,929,249*  
  11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON  
         
        3,756,991*  
  12   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES     ☐
       
           
  13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)  
         
        10.3%  
  14   TYPE OF REPORTING PERSON  
         
        IN  

  

* Includes 1,270,000 Ordinary Shares underlying certain call options currently exercisable as described in more detail in Item 6.

  

7 

CUSIP No. M0854Q105

 

  1   NAME OF REPORTING PERSON  
         
       

QVT Family Office Fund LP

  
  2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) ☒
        (b) ☐
           
  3   SEC USE ONLY    
           
           
  4   SOURCE OF FUNDS  
         
        WC  
  5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)     ☐
       
           
  6   CITIZENSHIP OR PLACE OF ORGANIZATION  
         
        Cayman Islands  
NUMBER OF   7   SOLE VOTING POWER  
SHARES          
BENEFICIALLY         0  
OWNED BY   8   SHARED VOTING POWER  
EACH          
REPORTING         767,742  
PERSON WITH   9   SOLE DISPOSITIVE POWER  
         
          0  
    10   SHARED DISPOSITIVE POWER  
           
          767,742  
  11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON  
         
        767,742  
  12   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES     ☐
       
           
  13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)  
         
        2.1%  
  14   TYPE OF REPORTING PERSON  
         
        PN  

  

8 

CUSIP No. M0854Q105

  

  1   NAME OF REPORTING PERSON  
         
       

QVT Associates GP LLC

  
  2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) ☒
        (b) ☐
           
  3   SEC USE ONLY    
           
           
  4   SOURCE OF FUNDS  
         
        AF  
  5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)     ☐
       
           
  6   CITIZENSHIP OR PLACE OF ORGANIZATION  
         
        Delaware  
NUMBER OF   7   SOLE VOTING POWER  
SHARES          
BENEFICIALLY         0  
OWNED BY   8   SHARED VOTING POWER  
EACH          
REPORTING         767,742  
PERSON WITH   9   SOLE DISPOSITIVE POWER  
         
          0  
    10   SHARED DISPOSITIVE POWER  
           
          767,742  
  11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON  
         
        767,742  
  12   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES     ☐
       
           
  13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)  
         
        2.1%  
  14   TYPE OF REPORTING PERSON  
         
        OO  

  

9 

CUSIP No. M0854Q105

 

  1   NAME OF REPORTING PERSON  
         
       

QVT Financial LP

  
  2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) ☒
        (b) ☐
           
  3   SEC USE ONLY    
           
           
  4   SOURCE OF FUNDS  
         
        AF  
  5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)     ☐
       
           
  6   CITIZENSHIP OR PLACE OF ORGANIZATION  
         
        Delaware  
NUMBER OF   7   SOLE VOTING POWER  
SHARES          
BENEFICIALLY         0  
OWNED BY   8   SHARED VOTING POWER  
EACH          
REPORTING         767,742  
PERSON WITH   9   SOLE DISPOSITIVE POWER  
        &#x A0;
          0  
    10   SHARED DISPOSITIVE POWER  
           
          767,742  
  11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON  
         
        767,742  
  12   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES     ☐
       
           
  13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)  
         
        2.1%  
  14   TYPE OF REPORTING PERSON  
         
        PN  

   

10 

CUSIP No. M0854Q105

  

  1   NAME OF REPORTING PERSON  
         
       

QVT Financial GP LLC

  
  2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) ☒
        (b) ☐
           
  3   SEC USE ONLY    
           
           
  4   SOURCE OF FUNDS  
         
        AF  
  5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)     ☐
       
           
  6   CITIZENSHIP OR PLACE OF ORGANIZATION  
         
        Delaware  
NUMBER OF   7   SOLE VOTING POWER  
SHARES          
BENEFICIALLY         0  
OWNED BY   8   SHARED VOTING POWER  
EACH          
REPORTING         767,742  
PERSON WITH   9   SOLE DISPOSITIVE POWER  
         
          0  
    10   SHARED DISPOSITIVE POWER  
           
          767,742  
  11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON  
         
        767,742  
  12   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES     ☐
       
           
  13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)  
         
        2.1%  
  14   TYPE OF REPORTING PERSON  
         
        OO  

   

11 

CUSIP No. M0854Q105

 

The following constitutes Amendment No. 4 to the Schedule 13D filed by the undersigned (“Amendment No. 4”). This Amendment No. 4 amends the Schedule 13D as specifically set forth herein.

 

Item 4.Purpose of Transaction.

 

Item 4 is hereby amended to add the following:

 

On February 18, 2022, following certain meetings between representatives of Outerbridge Capital (together with its affiliates, “Outerbridge”) and members of the Issuer’s management team and Board of Directors (the “Board”), Outerbridge Capital delivered a letter to the Board (the “Board Letter”) reiterating its belief in the Issuer’s potential and its support of the Issuer’s CEO and management team, but also noting certain concerns with worrisome actions taken by the Issuer recently, including its recent dilutive capital raise and the Board’s failure to deliver shareholder value over the course of the prior few years.

 

As stated in the Board Letter, Outerbridge has been a long-term and engaged shareholder of the Issuer, has been a strong advocate on the Company’s behalf, and has previously been encouraged by certain strategic actions taken by the Issuer. However, Outerbridge believes that the Issuer’s share price is dramatically undervalued, particularly given the Issuer’s leading market share in network-based security as a service (“SECaaS”) solutions, recent deal signings, strategic partnerships, and profitable core business in deep packet inspection (“DPI”) and network traffic management. Illustratively, and notwithstanding recent execution issues, Outerbridge believes the net present value of the Issuer’s SECaaS business is between $10 and $20 per share, while the net present value of the Issuer’s DPI business is between $10 and $15 per share, for a total sum of the parts valuation of between $20 and $35 per share, while the Issuer’s closing share price today was just $7.62. Outerbridge believes that this divergence between the current share price and the intrinsic value of the Issuer signals the market’s significant lack of confidence in the Board and requires immediate attention. To this end, Outerbridge has proposed the appointment of a shareholder representative to the Board to strengthen the Board’s public markets acumen and shareholder alignment and to ensure that appropriate process and consideration are followed on important matters affecting all shareholders.

 

Outerbridge intends to continue to work constructively with the Issuer to enhance value for all of its shareholders.

 

Item 5.Interest in Securities of the Issuer.

 

Item 5(c) is hereby amended and restated to read as follows:

 

(c)The transactions in the securities of the Issuer by the Reporting Persons since the filing of Amendment No. 3 to the Schedule 13D are set forth on Schedule B and incorporated herein by reference.

 

The filing of this Schedule 13D shall not be deemed an admission that the Reporting Persons are, for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, the beneficial owners of any securities of the Issuer that he or it does not directly own. Each of the Reporting Persons specifically disclaims beneficial ownership of the securities reported herein that he or it does not directly own.

 

 12

CUSIP No. M0854Q105

 

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

 

Item 6 is hereby amended to add the following:

 

Outerbridge Capital, on behalf of the Accounts, purchased certain American-style call options referencing an aggregate of 200,000 Ordinary Shares, which had a strike price of $10.00 per Ordinary Share and expired on February 18, 2022. These call options expired worthless pursuant to their terms. Accordingly Outerbridge Capital and the Accounts no longer have any exposure to such options.

 

 13

CUSIP No. M0854Q105

 

SIGNATURE

 

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

 

Date: February 23, 2022

 

  OUTERBRIDGE CAPITAL MANAGEMENT, LLC
   
  By: /s/ Rory Wallace
    Name: Rory Wallace
    Title: Managing Member

 

  OUTERBRIDGE PARTNERS, LP
     
  By: Outerbridge Partners GP, LLC, its general partner
     
  By: /s/ Rory Wallace
    Name: Rory Wallace
    Title: Managing Member

 

  OUTERBRIDGE SPECIAL OPPORTUNITIES FUND II, LP
   
  By: Outerbridge Special Opportunities GP II, LLC, its general partner
     
  By: /s/ Rory Wallace
    Name: Rory Wallace
    Title: Managing Member

 

  OUTERBRIDGE PARTNERS GP, LLC
   
  By: /s/ Rory Wallace
    Name: Rory Wallace
    Title: Managing Member

 

  OUTERBRIDGE SPECIAL OPPORTUNITIES GP II, LLC
   
  By: /s/ Rory Wallace
    Name: Rory Wallace
    Title: Managing Member

 

/s/ Rory Wallace
  RORY WALLACE

 

 14

CUSIP No. M0854Q105

 

  QVT FAMILY OFFICE FUND LP
   
  By: QVT Associates GP LLC, its general partner
     
  By: /s/ Dan Gold
    Name: Dan Gold
    Title: Managing Member

 

  By: /s/ Tracy Fu
    Name: Tracy Fu
    Title: Managing Member

 

  QVT ASSOCIATES GP LLC
   
  By: /s/ Dan Gold
    Name: Dan Gold
    Title: Managing Member

 

  By: /s/ Tracy Fu
    Name: Tracy Fu
    Title: Managing Member

 

  QVT FINANCIAL LP
   
  By: QVT Financial GP LLC, its general partner
     
  By: /s/ Dan Gold
    Name: Dan Gold
    Title: Managing Member

 

  By: /s/ Tracy Fu
    Name: Tracy Fu
    Title: Managing Member

 

  QVT FINANCIAL GP LLC
   
  By: /s/ Dan Gold
    Name: Dan Gold
    Title: Managing Member

 

  By: /s/ Tracy Fu
    Name: Tracy Fu
    Title: Managing Member

 

 15

CUSIP No. M0854Q105

 

SCHEDULE B

 

Transactions in Securities of the Issuer Since the Filing of Amendment No. 3 to the Schedule 13D

 

Nature of the Transaction

Amount of Securities

Purchased/(Sold)

 Price ($)

Date of

Purchase/Sale

 

OUTERBRIDGE CAPITAL MANAGEMENT LLC 

(Through the Accounts)

 

Purchase of February 18, 2022 Call Options ($10.00 Strike Price) 106,400 $0.6949 02/14/2022
Purchase of February 18, 2022 Call Options ($10.00 Strike Price) 93,600 $0.6949 02/14/2022