UNITED STATES
SECURITIES EXCHANGE COMMISSION
Washington, D.C. 20549
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SCHEDULE 13G
Under the Securities Exchange Act of 1934
(Amendment No. )*
OSCIENT PHARMACEUTICALS CORP
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(Name of Issuer)
Common Stock, $0.10 par value per share
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(Title of Class of Securities)
68812R303
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(CUSIP Number)
November 25, 2008
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(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 ("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).
Continued on following pages
Page 1 of 10 Pages
Exhibit Index: Page 9
Page 2 of 10 Pages
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1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
AKANTHOS CAPITAL MANAGEMENT, LLC
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2. Check the Appropriate Box if a Member of a Group
(a) [ ]
(b) [ ]
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3. SEC Use Only
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4. Citizenship or Place of Organization
Delaware
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5. Sole Voting Power 8,299,091
Number of Shares ---------------------------------------------------------
Beneficially Owned 6. Shared Voting Power None
by Each Reporting ---------------------------------------------------------
Person With 7. Sole Dispositive Power 8,299,091
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8. Shared Dispositive Power None
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9. Aggregate Amount Beneficially Owned by Each Reporting Person
8,299,091
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10. Check if the Aggregate Amount in Row (9) Excludes Certain Shares
(See Instructions)
[ ]
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11. Percent of Class Represented by Amount in Row (9)
19.72%(1)
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12. Type of Reporting Person:
OO
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(1) The number of Shares outstanding is based upon the sum of 35,567,177 Shares
outstanding as of November 24, 2008 (based on Shares outstanding as of November
3, 2008, as adjusted for additional Shares issued in the Exchange (as defined
herein)) plus 6,509,091 Shares attributable to convertible bonds beneficially
owned by the Reporting Persons (see Item 4)
Page 3 of 10 Pages
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1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
AKANTHOS ARBITRAGE MASTER FUND, L.P.
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2. Check the Appropriate Box if a Member of a Group
(a) [ ]
(b) [ ]
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3. SEC Use Only
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4. Citizenship or Place of Organization
Cayman Islands
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5. Sole Voting Power 8,299,091
Number of Shares ---------------------------------------------------------
Beneficially Owned 6. Shared Voting Power None
by Each Reporting ---------------------------------------------------------
Person With 7. Sole Dispositive Power 8,299,091
---------------------------------------------------------
8. Shared Dispositive Power None
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9. Aggregate Amount Beneficially Owned by Each Reporting Person
8,299,091
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10. Check if the Aggregate Amount in Row (9) Excludes Certain Shares
(See Instructions)
[ ]
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11. Percent of Class Represented by Amount in Row (9)
19.72% (2)
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12. Type of Reporting Person:
PN
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(2) The number of Shares outstanding is based upon the sum of 35,567,177 Shares
outstanding as of November 24, 2008 (based on Shares outstanding as of November
3, 2008, as adjusted for additional Shares issued in the Exchange (as defined
herein)) plus 6,509,091 Shares attributable to convertible bonds beneficially
owned by the Reporting Persons (see Item 4)
Page 4 of 10 Pages
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1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
MICHAEL KAO
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2. Check the Appropriate Box if a Member of a Group
(a) [ ]
(b) [ ]
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3. SEC Use Only
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4. Citizenship or Place of Organization
United States of America
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5. Sole Voting Power 8,299,091
Number of Shares ---------------------------------------------------------
Beneficially Owned 6. Shared Voting Power None
by Each Reporting ---------------------------------------------------------
Person With 7. Sole Dispositive Power 8,299,091
---------------------------------------------------------
8. Shared Dispositive Power None
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9. Aggregate Amount Beneficially Owned by Each Reporting Person
8,299,091
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10. Check if the Aggregate Amount in Row (9) Excludes Certain Shares
(See Instructions)
[ ]
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11. Percent of Class Represented by Amount in Row (9)
19.72% (3)
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12. Type of Reporting Person:
IN
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(3) The number of Shares outstanding is based upon the sum of 35,567,177 Shares
outstanding as of November 24, 2008 (based on Shares outstanding as of November
3, 2008, as adjusted for additional Shares issued in the Exchange (as defined
herein)) plus 6,509,091 Shares attributable to convertible bonds beneficially
owned by the Reporting Persons (see Item 4)
Page 5 of 10 Pages
Item 1(a). Name of Issuer:
Oscient Pharmaceuticals Corp. (the "Issuer")
Item 1(b). Address of Issuer's Principal Executive Offices:
1000 Winter Street, Suite 2200, Waltham MA 02451
Item 2(a). Name of Person Filing
This Statement is filed on behalf of each of the following
persons (collectively, the "Reporting Persons"):
i) Akanthos Capital Management, LLC ("Akanthos Capital
Management");
ii) Akanthos Arbitrage Master Fund, L.P., a Cayman Islands
limited partnership ("Akanthos Master Fund"); and
iii) Michael Kao ("Mr. Kao").
This Statement relates to Shares (as defined herein) held for
the account of Akanthos Master Fund. Akanthos Capital Management serves as
investment manager and general partner to Akanthos Master Fund. In such
capacity, Akanthos Capital Management may be deemed to have voting and
dispositive power over the Shares held for such account. Mr. Kao is the Manager
of Akanthos Capital Management. In such capacity, Mr. Kao may be deemed to have
voting and dispositive power over the Shares held for such account.
Item 2(b). Address of Principal Business Office or, if None, Residence:
The address of the principal business office of each of
Akanthos Capital Management and Mr. Kao is 21700 Oxnard St., Suite 1520,
Woodland Hills CA 91367-7584. The address of the principal business office for
Akanthos Master Fund is c/o Appleby Corporate Services (Cayman) Ltd., Clifton
House, 75 Fort Street, P.O. Box 1350 GT, Grand Cayman, Cayman Islands.
Item 2(c). Citizenship:
i) Akanthos Capital Management is a Delaware limited liability
company;
ii) Akanthos Master Fund is a Cayman Islands limited
partnership; and
iii) Mr. Kao is a citizen of the United States of America.
Item 2(d). Title of Class of Securities:
Common Stock (the "Shares")
Item 2(e). CUSIP Number:
68812R303
Page 6 of 10 Pages
Item 3. If This Statement is Filed Pursuant to ss.ss.240.13d-1(b) or
240.13d-2(b) or (c), Check Whether the Person Filing is a:
This Item 3 is not applicable.
Item 4. Ownership:
Item 4(a) Amount Beneficially Owned:
As of November 25, 2008, each of Akanthos Capital Management,
Akanthos Master Fund and Mr. Kao may be deemed to be the beneficial owner of
8,299,091 Shares. This amount consists of: (A) 1,790,000 Shares; and (B)
7,160,000 units 12.50% Convertible Guaranteed Senior Notes due 2011 (the
"Notes"), convertible at $1.10 per share into 6,509,091 Shares, in each case,
held for the account of Akanthos Master Fund.
Item 4(b) Percent of Class:
Reporting persons exceeded the 5% threshold due to an exchange
offer (the "Exchange") made by the Issuer in which Akanthos Master Fund
participated. As per the information provided by the Issuer in its Prospectus
dated November 24, 2008, prior to the Exchange, on November 3, 2008, the Issuer
had 14,256,628 Shares outstanding. As per the information provided by the Issuer
in its Form 8-K dated November 24, 2008, 21,310,549 Shares were issued in the
Exchange. Therefore, as of November 24, 2008, outstanding shares of the Issuer
totaled 35,567,177 ("Current Shares Outstanding"). The number of Shares of which
each of Akanthos Capital Management, Akanthos Master Fund and Mr. Kao may be
deemed to be the beneficial owner constitutes approximately 19.72% of the total
number of Shares outstanding (calculated based on 42,076,268 Shares outstanding,
which is the sum of (A) the Current Shares Outstanding plus (B) the 6,509,091
Shares attributable to the Notes).
Item 4(c) Number of Shares of which such person has:
Akanthos Capital Management, Akanthos Master Fund and Mr. Kao:
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(i) Sole power to vote or direct the vote: 8,299,091
(ii) Shared power to vote or direct the vote: 0
(iii) Sole power to dispose or direct the disposition of: 8,299,091
(iv) Shared power to dispose or direct the disposition of: 0
Item 5. Ownership of Five Percent or Less of a Class:
This Item 5 is not applicable.
Item 6. Ownership of More than Five Percent on Behalf of Another
Person:
This Item 6 is not applicable.
Item 7. Identification and Classification of the Subsidiary Which
Acquired the Security Being Reported on By the Parent Holding
Company:
See disclosure in Item 2 hereof.
Page 7 of 10 Pages
Item 8. Identification and Classification of Members of the Group:
This Item 8 is not applicable.
Item 9. Notice of Dissolution of Group:
This Item 9 is not applicable.
Item 10. Certification:
By signing below each of the Reporting Persons certifies that,
to the best of their 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.
Page 8 of 10 Pages
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: December 15, 2008 AKANTHOS CAPITAL MANAGEMENT, LLC
By: /s/ Michael Kao
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Name: Michael Kao
Title: Manager
Date: December 15, 2008 AKANTHOS ARBITRAGE MASTER FUND, L.P.
By: Akanthos Capital Management, LLC
its general partner
By: /s/ Michael Kao
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Name: Michael Kao
Title: Manager
Date: December 15, 2008 Michael Kao
/s/ Michael Kao
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Page 9 of 10 Pages
EXHIBIT INDEX
Ex. Page No.
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A Joint Filing Agreement, dated December 15, 2008 by and among
Akanthos Capital Management, LLC, Akanthos Arbitrage Master
Fund, LP and Michael Kao 10
Page 10 of 10 Pages
EXHIBIT A
JOINT FILING AGREEMENT
The undersigned hereby agree that the statement on Schedule 13G with
respect to the Common Stock of Oscient Pharmaceuticals Corp. dated as of
December 15, 2008 is, and any amendments thereto (including amendments on
Schedule 13D) signed by each of the undersigned shall be, filed on behalf of
each of us pursuant to and in accordance with the provisions of Rule 13d-1(k)
under the Securities Exchange Act of 1934, as amended.
Date: December 15, 2008 AKANTHOS CAPITAL MANAGEMENT, LLC
By: /s/ Michael Kao
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Name: Michael Kao
Title: Manager
Date: December 15, 2008 AKANTHOS ARBITRAGE MASTER FUND, L.P.
By: Akanthos Capital Management, LLC
its general partner
By: /s/ Michael Kao
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Name: Michael Kao
Title: Manager
Date: December 15, 2008 Michael Kao
/s/ Michael Kao
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