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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
Current Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
June 22, 1999
[Date of earliest event reported.]
COYOTE SPORTS, INC.
(Exact name of registrant as specified in its charter)
Commission file number 333-29077
Nevada 88-0326730
[State or other jurisdiction [I.R.S. Employer Identification No.]
of incorporation or organization]
2291 Arapahoe Avenue
Boulder, Colorado 80302
[Address of principal executive offices] [Zip Code]
Registrant's telephone number, including area code: (303) 932-8794
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ITEM 5. OTHER EVENTS
On June 22, 1999, Coyote Sports, Inc. and Royal Precision, Inc. issued a joint
press release announcing that the Agreement and Plan of Merger dated as of
January 31, 1999, had been terminated.
Additionally, the Company issued a separate press release announcing that the
termination of the merger agreement and failure to obtain replacement long-term
financing will most likely have a material adverse effect on the Company's
business, operating results and financial condition. The Company, which is not
current with certain vendors, is undertaking a thorough review of its financial
situation to develop a plan to restructure the Company and its financial
obligations.
Certain substantial debt obligations of the Company contain a demand feature.
The Company is in direct communication with its lenders and hopes to be able to
obtain satisfactory accommodations to restructure its obligations. If the
Company is not able to obtain satisfactory accommodations from its lenders or
obtain other financing, it may be forced to seek relief under the United States
Bankruptcy code.
In addition, the Company anticipates that its common stock is likely to be
delisted from the Nasdaq SmallCap Market.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) None.
(b) None.
(c) Exhibits.
99.1 Text of the press release issued by Coyote Sports, Inc. and
Royal Precision, Inc. on June 22, 1999.
99.2 Text of the press release issued by Coyote Sports, Inc. on June
22, 1999.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
COYOTE SPORTS, INC.
(Registrant)
Dated: June 28, 1999 By: /s/ John Paul McNeill
Name: John Paul McNeill
Title: Chief Financial Officer and
Treasurer
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Exhibit 99.1
Coyote Sports and Royal Precision Terminate Merger Agreement
For Immediate Release
Contact: James Probst, President, Coyote Sports, Inc., (303) 932-8794;
Thomas Schneider, President and COO, Royal Precision, Inc.,
(602) 627-0200
RCG Capital Markets Group, Inc. (480) 675-0400
Retail: Jim Estrada, Brett Maas
Analysts/Institutional: Joe Dorame
Media: Jeff Stanlis
(June 22, 1999) -- SAN DIEGO, Calif. - Coyote Sports, Inc. (Nasdaq: COYT) and
Royal Precision, Inc. (Nasdaq: RIFL), announced today that the merger agreement
between the two companies has been terminated at the request of Royal Precision,
Inc. due to a material change in the business of Coyote Sports, Inc. resulting
in an inability to obtain suitable long-term financing.
Coyote Sports, Inc. and Royal Precision, Inc. are engaged in complementary
businesses in the golf and sports equipment industry. Coyote designs, engineers,
manufactures, markets and distributes brand name sports equipment and
recreational products, including steel and graphite golf shafts, premium grade
cycle tubing and javelins. Royal Precision develops, produces and markets steel
and graphite golf shafts, including the "Rifle" shaft, the first modern stepless
steel golf shaft.
This press release includes statements which may constitute forward looking
statements made pursuant so the safe harbor provision of the Private Securities
Litigation Reform Act of 1995. These statements are subject to risks and
uncertainties that could cause actual results to differ materially from the
forward looking statements including, but not limited to, risks related to the
Company's dependence on discretionary consumer spending and original equipment
manufacturers, new product introduction, competition, seasonality of sales,
fluctuations in operating results, product protection, intellectual property
rights, supply delays, use of third party suppliers, customer concentration and
other factors detailed in the Company's Securities and Exchange Commission
filings.
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Exhibit 99.2
Coyote Sports, Inc. To Restructure
For Immediate Release
(June 22, 1999) - BOULDER, Colorado--(BUSINESS WIRE)--Coyote Sports, Inc.
(Nasdaq-COYT) and Royal Precision, Inc. announced today that the merger
agreement between the two companies has been terminated at the request of Royal
Precision, Inc. due to a material change in the business of Coyote Sports, Inc.
resulting in an inability to obtain suitable replacement long-term debt
financing.
Termination of the merger agreement and the failure to obtain replacement
long-term financing will most likely have a material adverse effect on Coyote's
business, operating results and financial condition. The Company, which is not
current with certain vendors, is undertaking a thorough review of its financial
situation to develop a plan to restructure the Company and its financial
obligations.
Certain substantial debt obligations of the Company contain a demand feature.
The Company is in direct communication with its lenders and hopes to be able to
obtain satisfactory accommodations to restructure its obligations. If the
Company is not able to obtain satisfactory accommodations from its lenders or
obtain other financing, it may be forced to seek relief under the United States
Bankruptcy Code.
In addition, the Company anticipates that its common stock is likely to be
delisted from the Nasdaq SmallCap Market.
Coyote Sports, Inc. is a diversified sports manufacturing company that
specializes in golf (Apollo and Unifiber golf shafts), cycling (Reynolds premium
cycle tubing), and the manufacture of advanced composite materials used for
sporting goods products.
Certain oral and written statements of management of the Company included in
this press release may contain forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, and Section 21E of the Securities
Exchange Act of 1934, that involve risks and uncertainties that could cause
actual results to differ materially.
CONTACT:
Investor Relations Services Inc.
Ph: 904/409-0200
