UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G/A
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. 2)
XFONE, INC.
[OBJECT OMITTED](Name of Issuer)
COMMON STOCK
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(Title of Class of Securities)
98414Y109
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(CUSIP Number)
DECEMBER 31, 2009
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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:
|X| Rule 13d-1(b)
|_| 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).
PERSONS WHO ARE TO RESPOND TO THE COLLECTION OF INFORMATION CONTAINED IN THIS
FORM ARE NOT REQUIRED TO RESPOND UNLESS THE FORM DISPLAYS A CURRENTLY VALID OMB
CONTROL NUMBER.
SEC 1745 (12-02)
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1.
NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
GAGNON SECURITIES LLC
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2.
CHECK THE APPROPRIATE BOX IF A GROUP* (a)
(b) |X|
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3. SEC USE ONLY
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4.
CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE LIMITED LIABILITY COMPANY
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NUMBER OF 5.
SHARES SOLE VOTING POWER 0
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BENEFICIALLY 6.
OWNED BY SHARED VOTING POWER 701,322
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EACH 7.
REPORTING SOLE DISPOSITIVE POWER 0
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PERSON WITH: 8.
SHARED DISPOSTIVE POWER 701,322
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9.
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 701,322
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10.
CHECK BOX 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) 3.7 %
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12.
TYPE OF REPORTING PERSON (SEE INSTRUCTIONS) IA
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13.
NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
NEIL GAGNON
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14.
CHECK THE APPROPRIATE BOX IF A GROUP* (a)
(b) |X|
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15. SEC USE ONLY
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16.
CITIZENSHIP OR PLACE OF ORGANIZATION
USA
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NUMBER OF 17. 1,372,946
SHARES SOLE VOTING POWER
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BENEFICIALLY 18. 1,143,302
OWNED BY SHARED VOTING POWER
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EACH 19.
REPORTING SOLE DISPOSITIVE POWER 1,372,946
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PERSON WITH: 20.
SHARED DISPOSTIVE POWER 1,211,883
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21.
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 2,584,829
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22.
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
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23.
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) 13.7 %
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24.
TYPE OF REPORTING PERSON (SEE INSTRUCTIONS) IN
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ITEM 1.
(a) Name of Issuer: Xfone, Inc.
2506 Lakeland Drive, Suite 100
(b) Address of Issuer's Principal Executive Offices: Flowood, MS 39232
Item 2.
This Schedule 13G/A is being filed by Gagnon
Securities LLC and Neil Gagnon (together, the
"Reporting Persons"). Gagnon Securities LLC is an
investment adviser registered under Section 203 of
the Investment Advisers Act of 1940 and furnishes
investment advice to several customer accounts,
foundations, partnerships, trusts, and private
investment funds (collectively, the "Funds"). Mr.
Gagnon is the managing member and the principal
owner of Gagnon Securities LLC. In its role as
investment manager to the Funds, Gagnon Securities
LLC shares investment and/or voting power with Mr.
(a) Name of Person Filing: Gagnon with respect to certain securities of the
Issuer described in this schedule that are owned
by the Funds. Additionally, Mr. Gagnon has sole
voting power and sole dispositive power with
respect to certain securities of the Issuer, he
shares voting power and dispositive power with
respect to certain other securities of the Issuer
with certain persons, and he shares dispositive
power with certain persons but has no voting power
with respect to certain other securities of the
Issuer. The Reporting Persons expressly disclaim
beneficial ownership of all securities held in the
Funds' accounts. No single client's interest as
reported in the customer accounts at Gagnon
Securities LLC exceeds 5% of the outstanding
Common Stock of the Issuer. In addition, the
filing of this Schedule 13G/A shall not be
construed as an admission that the Reporting
Persons or any of their affiliates are beneficial
owners of any securities covered by this Schedule
13G/A for any other purposes than Section 13(d) of
the Securities Exchange Act of 1934.
(b) Address of Principal Business Office or, if none, Residence: (b) Address of Principal Business
Office or, if none, Residence:
GAGNON SECURITIES LLC: Delaware Limited Liability Company
(c) Citizenship: NEIL GAGNON: USA
(d) Title of Class of Securities: Common Stock
(e) CUSIP Number: 98414Y109
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:
(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) [X] An investment adviser in accordance with ss.240.13d-1(b)(1)(ii)(E);
(f) [ ] An employee benefit plan or endowment fund in accordance with
ss.240.13d-1(b)(1)(ii)(F);
(g) [ ] A parent holding company or control person in accordance with ss. 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 ss.240.13d-1(b)(1)(ii)(J).
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: GAGNON SECURITIES LLC: 701,322
NEIL GAGNON: 2,584,829
GAGNON SECURITIES LLC: 3.7%
NEIL GAGNON: 13.7%
Calculation of percentage of beneficial
ownership is based on the sum of
(b) Percent of class: (i) 18,376,075 outstanding shares of
Issuer Common Stock set forth on the
Issuer's most recent 10-Q filed on
November 16, 2009; and (ii) 500,000
shares of Issuer's common stock issuable
upon the exercise of warrants
issued to the accounts managed by the Reporting Persons.
(c) Number of shares as to which the person has:
(i) Sole power to vote or to direct the vote: GAGNON SECURITIES LLC: 0
NEIL GAGNON: 1,372,946
(ii) Shared power to vote or to direct the vote: GAGNON SECURITIES LLC: 701,322
NEIL GAGNON: 1,143,302
(iii) Sole power to dispose or to direct the GAGNON SECURITIES LLC: 0
disposition of: NEIL GAGNON: 1,372,946
(iv) Shared power to dispose or to direct the GAGNON SECURITIES LLC:
701,322 disposition of: NEIL GAGNON: 1,211,883
ITEM 5 OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS
Not applicable.
ITEM 6 OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER PERSON
The Funds described above in Item 2 have the right to receive or the power
to direct the receipt of dividends from, or the proceeds from the sale of,
securities held in their respective accounts. To the knowledge of the Reporting
Person, the interest in any such Fund does not exceed 5% of the class of
securities. The Reporting Person disclaims beneficial ownership of all such
securities.
ITEMS 7 - 9 Not Applicable
ITEM 10. CERTIFICATION
The following certification shall be included if the statement
is filed pursuant to ss.240.13d-1(b):
By signing below I certify that, to the best of my
knowledge and belief, the securities referred to
above were acquired and are held in the ordinary
(a) course of business and 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. [X]
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.
February 12, 2010
Date
GAGNON SECURITIES LLC
/s/ Neil Gagnon
Signature
Neil Gagnon
Name/Title
February 12, 2010
Date
/s/ Neil Gagnon
Signature
Neil Gagnon
Name/Title
The original statement shall be signed by each person on whose behalf the
statement is filed or his authorized representative. If the statement is signed
on behalf of a person by his authorized representative other than an executive
officer or general partner of the filing person, evidence of the
representative's authority to sign on behalf of such person shall be filed with
the statement, provided, however, that a power of attorney for this purpose
which is already on file with the Commission may be incorporated by reference.
The name and any title of each person who signs the statement shall be typed or
printed beneath his signature.
NOTE: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. SEE ss.240.13d-7 for other
parties for whom copies are to be sent.
ATTENTION: INTENTIONAL MISSTATEMENTS OR OMISSIONS OF FACT CONSTITUTE FEDERAL CRIMINAL VIOLATIONS (SEE 18 U.S.C. 1001)