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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 4
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
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(h) of the Investment Company Act of 1940
|_| Check this box if no longer subject to Section 16. Form 4 or Form 5
obligations may continue. See Instruction 1(b).
(Print of Type Responses)
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1. Name and Address of Reporting Person*
CORNERSTOCK EQUITY INVESTORS LLC
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(Last) (First) (Middle)
717 Fifth Avenue, Suite 1100
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(Street)
New York NY 10022
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(City) (State) (Zip)
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2. Issuer Name and Ticker or Trading Symbol
Novatel Wireless, Inc. (NVTL)
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3. I.R.S. Identification Number of Reporting Person, if an entity (voluntary)
________________________________________________________________________________
4. Statement for Month/Day/Year
December 31, 2002
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5. If Amendment, Date of Original (Month/Day/Year)
________________________________________________________________________________
6. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
|_| Director |X| 10% Owner
|_| Officer (give title below) |_| Other (specify below)
____________________________________________________________________
________________________________________________________________________________
7. Individual or Joint/Group Filing (Check Applicable line)
|_| Form Filed by One Reporting Person
|_| Form Filed by More than One Reporting Person
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Table I -- Non-Derivative Securities Acquired, Disposed of,
or Beneficially Owned
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5.
Amount of 6.
4. Securities Owner-
Securities Acquired (A) or Beneficially ship
2A. 3. Disposed of (D) Owned Form: 7.
2. Deemed Transaction (Instr. 3, 4 and 5) Following Direct Nature of
Trans- Execution Code ------------------------------- Reported (D) or Indirect
1. action Date, if (Instr. 8) (A) Transaction(s) Indirect Beneficial
Title of Security Date any ------------ or (Instr. 3 & (I) Ownership
(Instr. 3) (mm/dd/yy) (mm/dd/yy) Code V Amount (D) Price Instr.4) (Instr.4) (Instr.4)
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Common Stock, par
value $0.001 per share 417,683 I (1)
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Series A Preferred
Convertible Stock, par
value $0.001 per share 12/31/02 12/31/02 3,000 D I (2)
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Common Stock, par
value $0.001 per share 12/31/02 12/31/02 277,853 A 695,536 I (2)
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FORM 4 (continued)
Table II -- Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
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9.
Number 10.
of Owner-
deriv- ship
ative Form
2. Secur- of
Conver- 5. 7. ities Deriv- 11.
sion Number of Title and Amount Bene- ative Nature
or Derivative 6. of Underlying 8. ficially Secur- of
Exer- 3A. 4. Securities Date Securities Price Owned ity: In-
cise Deemed Trans- Acquired (A) Exercisable and (Instr. 3 and 4) of Follow- Direct direct
Price 3. Execut- action or Disposed Expiration Date ---------------- Deriv- ing (D) or Bene-
1. of Trans- ion Code of(D) (Month/Day/Year) Amount ative Reported In- ficial
Title of Deriv- action Date if (Instr. (Instr. 3, ---------------- or Secur- Trans- direct Owner-
Derivative ative Date any 8) 4 and 5) Date Expira- Number ity action(s) (I) ship
Security Secur- (mm/dd/ (mm/dd/ ------ ------------ Exer- tion of (Instr. (Instr. (Instr. (Instr.
(Instr. 3) ity yy) yy) Code V (A) (D) cisable Date Title Shares 5) 4) 4) 4)
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Warrants
(Right to
Buy) (3) 12/31/04 71,942 16.80 I (2)
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Warrants
(Right to
Buy) (3) 06/30/05 11,594 48.60 I (2)
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Warrants
(Right to
Buy) (3) 12/21/05 77,922 18.00 161,458 I (2)
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Explanation of Responses:
(1) Effective as of October 29, 2002, Novatel Wireless, Inc. (the "Company")
effected a combination of all the issued and outstanding shares of its
common stock, $0.001 par value per share, in a ratio of 1 share for every
15 shares surrendered (hereinafter, the "Reverse Split"). Further
information about the Reverse Split may be found in the Company's filing on
Form 8-K made with the SEC on October 22, 2002. All the share and option
amounts contained in this filing on Form 4 accordingly reflect the
effectiveness of the Reverse Split.
(2) On December 31, 2002, Cornerstone Equity Investors, LLC converted 3,000
shares of the Company's Series A Convertible Preferred Stock into 277,853
shares of the Company's Common Stock, $0.001 par value per share. The
shares issued upon such conversion are subject to a currently effective
registration statement filed with the SEC on Form S-3.
(3) The warrants are currently exercisable.
/s/ Patrick T. Waters, Attorney in Fact January 2, 2003
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**Signature of Reporting Person Date
Reminder: Report on a separate line for each class of securities beneficially
owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction
4(b)(v).
** 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 is insufficient, see Instruction 6 for procedure.
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