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FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
August 30, 1995
Ajay Sports, Inc.
(Exact Name of Registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
0-18204 39-1644025
(Commission File Number) (IRS Employer Identification Number)
1501 E. Wisconsin Street, Delavan, WI 53115
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (414) 728-5521
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Item 5: Other Events
Incorporated by reference are press releases of August 22, 1995 and August 30,
1995 announcing the signing of letters of intent to acquire certain assets of
Palm Springs Golf Company, Inc. and of Korex Corporation.
Item 7: Exhibit 1
Press release dated August 22, 1995.
Exhibit 2
Press release dated August 30, 1995.
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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.
AJAY SPORTS,INC.
By /S/ROBERT R. HEBARD
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Robert R. Hebard, Secretary
September 1, 1995
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AJAY SPORTS, INC.
7001 Orchard Lake Rd. Suite 424, West Bloomfield, MI 48322-3608
FOR IMMEDIATE RELEASE
Contact: Thomas W. Itin
Phone: 810/851-5651
Fax: 810/851-9080
AJAY SPORTS SIGNS LETTER OF INTENT TO ACQUIRE OPERATIONS OF KOREX
West Bloomfield, MI, August 30, 1995 -- Ajay Sports, Inc. (Nasdaq:
AJAY) announced that it has signed a Letter of Intent to acquire certain
business assets of Korex Corporation, a privately held company located in
Naperville, Illinois.
Korex designs, manufactures and markets a line of golf bags, carts and
accessories. The products are primarily sold through mass merchants such as
Target, Sears and Shopko. Korex competes against Ajay in the mass merchant
channel for golf products, and had sales of approximately $4.1 million in 1994.
The transaction is subject to certain conditions including bank
financing, due diligence, the approval of Ajay Sports' board and the signing of
a definitive agreement. The Letter of Intent calls for Ajay Sports to acquire
the inventory, machinery, equipment and intellectual property of Korex in
exchange for Ajay common stock and cash.
In commenting, Ajay Chairman and President Thomas W. Itin stated, "This
acquisition will be valuable to Ajay for two reasons. First, it will help us to
be more efficient in the manufacturing and selling of golf products, and we
believe we can achieve significant cost savings through this combination.
Second, Korex has existing business relationships with customers in the mass
merchant channel that complement and expand Ajay's customer base in that market
segment. With our current operations, and if our recently proposed acquisitions
are completed, Ajay should have approximately $30 million in annual sales."
Recently, Ajay Sports closed on a $3,250,000 preferred stock offering
and completed a new $8.5 million line of credit with the United States National
Bank of Oregon. On August 22nd, Ajay announced the signing of a Letter of Intent
to acquire the operating assets of Palm Springs Golf Company, a golf club
manufacturer.
Ajay Sports, Inc., through its wholly-owned subsidiaries, Ajay Leisure
Products, Inc. and Leisure Life, Inc., manufactures and distributes golf bags,
carts, accessories, billiard equipment and casual living furniture.
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AJAY SPORTS, INC.
7001 Orchard Lake Rd. Suite 424, West Bloomfield, MI 48322-3608
FOR IMMEDIATE RELEASE
Contact: Thomas W. Itin
Phone: 810/851-5651
Fax: 810/851-9080
AJAY SPORTS SIGNS LETTER OF INTENT TO ACQUIRE PALM SPRINGS GOLF
West Bloomfield, MI, August 22, 1995 -- Ajay Sports, Inc. (Nasdaq:
AJAY) announced that it has signed a Letter of Intent to acquire the operating
assets of Palm Springs Golf Company, Inc. of Palm Desert, CA.
Palm Springs Golf designs, manufactures and markets a full line of golf
clubs, including oversized drivers, metal woods, irons, wedges and putters,
along with a line of golf bags and gloves. The product lines are primarily sold
through off-course retail discount specialty stores.
The transaction is subject to certain conditions including bank
financing, due diligence, approval of Ajay Sports' board and the signing of a
definitive agreement. It calls for Ajay Sports to acquire substantially all of
the operating assets of Palm Springs Golf, subject to certain related
liabilities, in exchange for the issuance of Ajay common stock and options. if
the acquisition is completed, Ajay and Palm Springs Golf plan to maintain
independent marketing and sales operations in serving their current distribution
channels.
In commenting, Ajay Chairman and President Thomas W. Itin stated, "Palm
Springs Golf's outstanding golf club line and its access to the off-course
retail specialty stores, through which Ajay does a small percentage of its total
sales, will complement Ajay's presence in the mass merchant store channel and
create new marketing opportunities that should strengthen both companies." Palm
Springs Golf Chairman Joseph C. Giuffre further commented, "This combination
with Ajay will give us the capital we need to expand our product lines,
strengthen our presence in the off-course retail discount store market and
create a full line golf business with access to the two fastest growing golf
distribution channels."
Recently, Ajay Sports closed on a $3,250,000 preferred stock offering
and completed a new $8.5 million line of credit with the United States National
Bank of Oregon.
Ajay Sports, Inc., through its wholly-owned subsidiaries, Ajay Leisure
Products, Inc. and Leisure Life, Inc., manufactures and distributes golf bags,
carts, accessories, billiard equipment and casual living furniture.
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