SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES AND EXCHANGE ACT OF 1934
Date of Report: July 2, 1998
Alyn Corporation
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(Exact name of registrant as specified in its charter)
Delaware 000-21153 33-0709359
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(State or other jurisdiction of (Commission File (IRS Employer
incorporation) Number) Identification Number)
16761 Hale Avenue, Irvine, California 92606
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (949) 475-1525
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Item 5. Other Materially Important Events
On July 2, 1998, the Registrant issued a press release, a copy of which is
attached hereto as Exhibit 99.1, responding to a recent sharp decline in the
Registrant's share price and providing an update on the Registrant's business.
Item 7. Financial Statements and Exhibits
(c) Exhibits.
99.1 Press release of the Registrant, dated July 2, 1998.
<PAGE>
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the registrant has duly caused this report to be signed on its behalf
by the undersigned herewith duly authorized.
Date: July 2, 1998 ALYN CORPORATION
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(Registrant)
By: /s/ Richard L. Little
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Richard L. Little
Chief Financial Officer
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EXHIBIT INDEX
Exhibit
99.1 Press release of the Registrant, dated July 2, 1998.
ALYN CORPORATION RESPONDS TO RECENT SHARP
DECLINE IN SHARE PRICE AND PROVIDES BUSINESS UPDATE
Irvine, CA - July 2, 1998 - Alyn Corporation (Nasdaq: ALYN) - Steven S.
Price, Alyn Corporation's new President & Chief Executive Officer, provided his
reaction today to the recent negative trend in Alyn's stock price. Price, who
has now been with Alyn for two months, stated, "It is unfortunate that the
announcement of our intention to offer shareholders the opportunity to purchase
$10 million in additional stock appears to have lead to a recent decline in our
stock price."
Alyn announced on June 29, 1998 that it would offer shareholders the
opportunity to purchase additional stock to add working capital for Alyn. Price
continued, "Alyn has over $8 million in cash at the end of June. The Rights
Offering is to provide us additional working capital as we now begin production,
to support the growth of our business. We have also been reducing our working
capital requirements by taking positive steps to reduce our current cash burn
rate and to slow its growth as the Company grows. We believe these are prudent
steps to take now, even though Alyn's future looks brighter today than it did
even 60 day ago."
The Company is focusing its product development efforts in five areas...
premium priced golf club heads and shafts, selected automotive components,
aerospace components, disk substrates for computer hard drives and nuclear
shielding for waste storage casks.
Recent communications by the Company have reported positive momentum in its
golf club and automotive businesses, including additional golf programs with
several well-known golf club companies. The Company has also recently received
advanced quality system approval by three major aerospace/air frame
manufacturers.
Since receiving these approvals, the Company has received a three-year
contract to produce $750,000 of cargo handling equipment for multiple Boeing
aircraft. The Company has also received a five-year contract to produce forged
valve body hydraulic actuators for the commercial aircraft industry and an order
for overhead storage bin components for Airbus Industries. Price commented, "We
are just beginning to see the positive results from our strategic manufacturing
investment over the past 18 months."
In addition to the aerospace/air frame business, the Company has received
production orders for F-16 missile launch rails, extruded tube for military
helicopters and tubing for a lacrosse stick manufacturer.
Progress continues with the Company's computer hard-disk program. Several
surface quality issues remain, relating to industry requirements for a
"pit-free" surface, although the Company believes it has developed solutions to
these issues which are now in testing. Large-scale disk production is not
expected until the second half of 1999.
Price added, "We are also pleased with the progress we have recently made
in our nuclear shielding efforts. We have shipped prototypes to our customer
whose evaluation of these we believe will lead to production later this year."
Price completed his comments saying, "From my perspective, the outlook for
Alyn Corporation has never been better. We are focused on those projects we
expect to produce near-term revenues, net income and cashflow and we believe our
shareholders will see the positive momentum grow from these programs as the year
progresses.
"The pledge by our outside directors and their associated funds to purchase
at least $5 million of this offering and the donation by Robin Carden, Alyn's
Founder, of 500,000 shares to reduce dilution, demonstrates their recognition of
our recent progress toward achieving the opportunity we see for the Company."
Alyn Corporation provides customized metal matrix composite solutions to
meet the specific product needs of its customers in consumer and industrial
markets. Alyn is a vertically-integrated metal matrix composite company offering
advanced metal matrix composites, customer driven engineering solutions and
strategically developed manufacturing processes. The Company engages in joint
development projects with many of its customers in selected large markets where
the design and production of metal matrix composite-based products provide those
customers with products that are innovative, reduce their overall production
cost, or provide value added performance.
A registration statement relating to the securities in the Rights Offering
has been filed with the Securities and Exchange Commission, but has not yet
become effective. These securities may not be sold nor may offers to buy be
accepted prior to the time the registration statement becomes effective. This
press release shall not constitute an offer to sell or the solicitation of an
offer to buy nor shall there be any sale of the securities in the Rights
Offering in any State or country in which such offer, solicitation or sale would
be unlawful prior to the registration or qualification under the securities laws
of any such State or country.
A copy of the preliminary prospectus filed with the SEC is available
through the Company. Please write to Investor Relations, Alyn Corporation, 16761
Hale Avenue, Irvine, CA 92606 or call 1-949-475-1525. A copy of the final
prospectus will be available following the effective date of the offering from
the Company's Information Agent, Innisfree M&A Incorporated, 501 Madison Avenue,
New York, NY 10022. Shareholders with questions are encouraged to contact
Innisfree toll free at 1-888-750-5834 or the Company at 1-949-475-1525.
Except for historical information contained herein, this document contains
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements involve known and unknown risks
and uncertainties that may cause the Company's actual results or outcomes to be
materially different from those anticipated and discussed herein. Further, the
Company operates in an industry sector where securities values may be volatile
and may be influenced by regulatory and other factors beyond the Company's
control. Important factors that the Company believes might cause such
differences are discussed in the cautionary statements accompanying the
forward-looking statements in the Company's Prospectus on Form S-3, dated June
29, 1998 and its Annual Report on Form 10-K filed with the Securities and
Exchange Commission. In assessing forward-looking statements contained herein,
readers are urged to read carefully all cautionary statements contained in those
filings with the Securities and Exchange Commission.
