UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G
Under the Securities Exchange Act of 1934
(Amendment No. ) *
KapStone Paper and Packaging Corp
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(Name of Issuer)
Warrants to Purchase Shares, par value $.01
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(Title of Class of Securities)
48562P111
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(CUSIP Number)
October 2, 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).
Page 1 of 7 pages
CUSIP No. 48562P111
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1. Names of Reporting Persons. The Red Oak Fund, LP
I.R.S. Identification Nos. of above persons (entities only).
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2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) [ ]
(b) [ ]
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3. SEC Use Only
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4. Citizenship or Place of Organization United States
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Number of 5. Sole Voting Power 0
Shares Bene- --------------------------------------------------------
ficially owned 6. Shared Voting Power 1,412,502
by Each --------------------------------------------------------
Reporting 7. Sole Dispositive Power 0
Person With: --------------------------------------------------------
8. Shared Dispositive Power 1,412,502
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9. Aggregate Amount Beneficially Owned by Each Reporting Person 1,412,502
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10. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See
Instructions) [ ]
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11. Percent of Class Represented by Amount in Row (9) 5.4%
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12. Type of Reporting Person (See Instructions) PN
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Page 2 of 7 pages
CUSIP No. 48562P111
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1. Names of Reporting Persons. Red Oak Partners, LLC
I.R.S. Identification Nos. of above persons (entities only).
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2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) [ ]
(b) [ ]
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3. SEC Use Only
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4. Citizenship or Place of Organization New York
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Number of 5. Sole Voting Power 0
Shares Bene- --------------------------------------------------------
ficially owned 6. Shared Voting Power 1,621,612
by Each --------------------------------------------------------
Reporting 7. Sole Dispositive Power 0
Person With: --------------------------------------------------------
8. Shared Dispositive Power 1,621,612
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9. Aggregate Amount Beneficially Owned by Each Reporting Person 1,621,612
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10. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See
Instructions) [ ]
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11. Percent of Class Represented by Amount in Row (9) 6.1%
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12. Type of Reporting Person (See Instructions) OO
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Page 3 of 7 pages
CUSIP No. 48562P111
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1. Names of Reporting Persons. David Sandberg
I.R.S. Identification Nos. of above persons (entities only).
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2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) [ ]
(b) [ ]
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3. SEC Use Only
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4. Citizenship or Place of Organization United States
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Number of 5. Sole Voting Power 0
Shares Bene- --------------------------------------------------------
ficially owned 6. Shared Voting Power 1,621,612
by Each --------------------------------------------------------
Reporting 7. Sole Dispositive Power 0
Person With: --------------------------------------------------------
8. Shared Dispositive Power 1,621,612
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9. Aggregate Amount Beneficially Owned by Each Reporting Person 1,621,612
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10. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See
Instructions) [ ]
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11. Percent of Class Represented by Amount in Row (9) 6.1%
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12. Type of Reporting Person (See Instructions) IN
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Page 4 of 7 pages
ITEM 1.
(a) Name of the issuer is KapStone Paper and Packaging Corp (the "issuer").
(b) The address of issuer's principal executive offices is 1101 Skokie Blvd,
Suite 300, Northbrook, Illinois 60062-4124.
Item 2.
(a) This statement (this "Statement") is being filed by David Sandberg, the
controlling member of Red Oak Partners, LLC, a New York limited
liability company ("Red Oak Partners"), which serves as the general
partner of The Red Oak Fund, LP, a Delaware limited partnership (the
"Red Oak Fund") and a managing member of Pinnacle Fund LLLP, a Colorado
limited liability limited partnership ("Pinnacle Fund" and together with
the "Red Oak Fund", the "Funds"). The Funds are private investment
vehicles formed for the purpose of investing and trading in a wide
variety of securities and financial instruments. The Funds directly own
the warrants as reported in this Statement. Each of the filers hereto
disclaims beneficial ownership with respect to any warrants and
underlying shares other than the warrants and underlying shares owned
directly by such filer.
As of the date of this filing, the Red Oak Partners, LLC and David
Sandberg may be deemed to be the beneficial owner of 1,621,612 shares
of KapStone Paper and Packaging Corp (the "Company") common stock and
Red Oak Fund may be deemed to be the beneficial owner of 1,412,502
shares of the Company's common stock as a result of: (i) Red Oak Fund
holding a warrant to purchase 1,412,502 shares of the Company's common
stock and (ii) Pinnacle Fund holding a warrant to purchase 209,110
shares of the Company's common stock. Each warrant entitles the holder
to purchase shares of the Company's common stock at a price of $5.
(b) The principal business office of the Filers is 145 Fourth Avenue, Suite
15A, New York, New York 10003.
(c) David Sandberg is a citizen of the United States.
(d) This Statement relates to Warrants of the Issuer.
(e) The CUSIP Number of the Warrants of the Issuer is 48562P111.
Item 3. If this statement is filed pursuant to 240.13d-1(b), or 240.13d-2(b) or
(c), check whether the person filing is a:
(a) [ ] Broker or dealer registered under section 15 of the Act (15 U.S.C.
78o).
(b) [ ] Bank as defined in section 3(a)(6) of the Act (15 U.S.C. 78c).
(c) [ ] Insurance company as defined in section 3(a)(19) of the Act (15 U.S.C.
78c).
(d) [ ] Investment company registered under section 8 of the Investment Company
Act of 1940 (15 U.S.C. 80a-8).
(e) [ ] An investment adviser in accordance with 240.13d-1(b)(1)(ii)(E);
(f) [ ] An employee benefit plan or endowment fund in accordance with
240.13d-1(b)(1)(ii)(F);
(g) [ ] A parent holding company or control person in accordance with
240.13d-1(b)(1)(ii)(G);
(h) [ ] A savings associations as defined in Section 3(b) of the Federal
Deposit Insurance Act (12 U.S.C. 1813);
(i) [ ] A church plan that is excluded from the definition of an investment
company under section 3(c)(14) of the Investment Company Act of 1940
(15 U.S.C. 80a-3);
(j) [ ] Group, in accordance with 240.13d-1(b)(1)(ii)(J).
Not applicable.
ITEM 4. OWNERSHIP.
Provide the following information regarding the aggregate number and percentage
of the class of securities of the issuer identified in Item 1.
(a) Amount beneficially owned:
(a) With respect to David Sandberg and Red Oak Partners, LLC, 1,621,612
shares of Common Stock.
(b) With respect for Red oak Fund, 1,412,502 shares of Common Stock
See Item 2 above.
(b) Percent of class:
(a) With respect to David Sandberg and Red Oak Partners, LLC, 6.1% of
Common Stock.
(b) With respect for Red oak Fund, 5.4% of Common Stock
(c) Number of shares as to which such person has:
(i) Sole power to vote or to direct the vote
0
(ii) Shared power to vote or to direct the vote
(a) With respect to David Sandberg and Red Oak Partners, LLC, 1,621,612
shares of Common Stock.
(b) With respect for Red oak Fund, 1,412,502 shares of Common Stock
(iii) Sole power to dispose or to direct the disposition of
0
(iv) Shared power to dispose or to direct the disposition of
(a) With respect to David Sandberg and Red Oak Partners, LLC, 1,621,612
shares of Common Stock.
(b) With respect for Red oak Fund, 1,412,502 shares of Common Stock
Page 5 of 7 pages
Item 5. Ownership of Five Percent or Less of a Class
If this statement is being filed to report the fact that as of the date
hereof the reporting person has ceased to be the beneficial owner of
more than five percent of the class of securities, check the following
[ ].
Not applicable.
Item 6. Ownership of More than Five Percent on Behalf of Another Person.
Not applicable.
Item 7. Identification and Classification of the Subsidiary Which Acquired the
Security Being Reported on By the Parent Holding Company.
Not applicable.
Item 8. Identification and Classification of Members of the Group
Not applicable.
Item 9. Notice of Dissolution of Group
Not applicable.
Item 10. Certification
(a) Not applicable.
(b) By signing below I certify that, to the best of my 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 6 of 7 pages
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief,
the undersigned certify that the information set forth in this statement is
true, complete and correct.
Dated: October 13, 2008
/s/ David Sandberg
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David Sandberg
Red Oak Partners, LLC
By: /s/ David Sandberg
-------------------------------
David Sandberg, Managing Member
The Red Oak Fund, LP
By: Red Oak Partners, LLC,
General Partner
By: /s/ David Sandberg
-------------------------------
David Sandberg, Managing Member