SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
SCHEDULE 13D
(Rule 13d-1)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULE 13D-1(a)
AND AMENDMENTS THERETO FILED PURSUANT TO RULE 13D-2(a)
SYLVAN INC.
(Name of Issuer)
Common Stock, Par Value $0.001 Per Share
(Title of Class of Securities)
871371100
(CUSIP Number)
Wynnefield Partners Small Cap Value, L.P.
One Penn Plaza - Suite 4720
New York, New York 10119
Attention: Mr. Nelson Obus
(212) 760-0134
(Name, Address and Telephone Number of Person Authorized)
to Receive Notices and Communications)
Copy to:
Jesse R. Meer, Esq.
Berlack, Israels & Liberman LLP
120 West 45th Street
New York, New York 10035
(212) 704-0100
May 3, 1999
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a Statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following
box: ( )
(Page 1 of 8 Pages)
<PAGE>
- ------------------- -----------------
CUSIP No. 871371100 Page 2 of 8 Pages
- ------------------- -----------------
________________________________________________________________________________
1 NAME OF REPORTING PERSON: Wynnefield Partners Small Cap Value, L.P.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON: 13-3688497
________________________________________________________________________________
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [x]
(b) [_]
________________________________________________________________________________
3 SEC USE ONLY
________________________________________________________________________________
4 SOURCE OF FUNDS
WC (SEE ITEM 3)
________________________________________________________________________________
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or (e) [_]
________________________________________________________________________________
6 CITIZENSHIP OR PLACE OR ORGANIZATION
DELAWARE
________________________________________________________________________________
7 SOLE VOTING POWER
NUMBER OF 149,397
SHARES _________________________________________________________________
8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY
_________________________________________________________________
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 149,397
PERSON _________________________________________________________________
10 SHARED DISPOSITIVE POWER
WITH
________________________________________________________________________________
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
149,397 shares
________________________________________________________________________________
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
________________________________________________________________________________
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.35%
________________________________________________________________________________
14 TYPE OF REPORTING PERSON
PN
________________________________________________________________________________
(Page 2 of 8 Pages)
<PAGE>
- ------------------- -----------------
CUSIP No. 871371100 Page 3 of 8 Pages
- ------------------- -----------------
________________________________________________________________________________
1 NAME OF REPORTING PERSON: Wynnefield Small Cap Value Offshore Fund, Ltd.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON: Not Applicable
________________________________________________________________________________
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [x]
(b) [_]
________________________________________________________________________________
3 SEC USE ONLY
________________________________________________________________________________
4 SOURCE OF FUNDS
WC (SEE ITEM 3)
________________________________________________________________________________
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or (e) [_]
________________________________________________________________________________
6 CITIZENSHIP OR PLACE OR ORGANIZATION
CAYMAN ISLANDS
________________________________________________________________________________
7 SOLE VOTING POWER
NUMBER OF 47,600
SHARES _________________________________________________________________
8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY
_________________________________________________________________
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 47,600
PERSON _________________________________________________________________
10 SHARED DISPOSITIVE POWER
WITH
________________________________________________________________________________
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 47,600 shares
________________________________________________________________________________
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
________________________________________________________________________________
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
.75%
________________________________________________________________________________
14 TYPE OF REPORTING PERSON
CO
________________________________________________________________________________
(Page 3 of 8 Pages)
<PAGE>
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CUSIP No. 871371100 Page 4 of 8 Pages
- ------------------- -----------------
________________________________________________________________________________
1 NAME OF REPORTING PERSON: Wynnefield Small Cap Value L.P. I
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON: 13-3953291
________________________________________________________________________________
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [x]
(b) [_]
________________________________________________________________________________
3 SEC USE ONLY
________________________________________________________________________________
4 SOURCE OF FUNDS
WC (SEE ITEM 3)
________________________________________________________________________________
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or (e) [_]
________________________________________________________________________________
6 CITIZENSHIP OR PLACE OR ORGANIZATION
Delaware
________________________________________________________________________________
7 SOLE VOTING POWER
NUMBER OF 166,003
SHARES _________________________________________________________________
8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY
_________________________________________________________________
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 166,003
PERSON _________________________________________________________________
10 SHARED DISPOSITIVE POWER
WITH
________________________________________________________________________________
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 166,003 shares
________________________________________________________________________________
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
________________________________________________________________________________
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.61%
________________________________________________________________________________
14 TYPE OF REPORTING PERSON
PN
________________________________________________________________________________
(Page 4 of 8 Pages)
<PAGE>
Item 1. Security and Issuer.
This Statement relates to shares of the Common Stock, $0.001 par value per
share (the "Shares"), of Sylvan Inc., a Nevada corporation (the "Issuer"). The
principal executive offices of the Issuer are located at 333 Main Street,
Saxonburg, Pennsylvania 16056-0249.
Item 2. Identity and Background.
(a), (b), (c) and (f). This Statement is being filed by Wynnefield Partners
Small Cap Value, L.P. (the "Partnership"), Wynnefield Small Cap Value Offshore
Fund, Ltd. (the "Fund"), and Wynnefield Small Cap Value, L.P. I (the
"Partnership-I"). The Partnership, the Fund and Partnership-I are sometimes
referred to collectively as the "Wynnefield Group".
Wynnefield Capital Management, LLC, a New York limited liability company
("WCM) is the general partner of the Partnership and the Partnership-I, which
are private investment companies organized as limited partnerships under the
laws of the State of Delaware. Nelson Obus, Joshua Landes and Robert Melnick are
the managing members of WCM. Mr. Obus, Mr. Landes and Mr. Melnick are principal
executive officers of Wynnefield Capital, Inc., the investment manager of the
Fund, a private investment company organized under the laws of the Cayman
Islands. Mr. Obus, Mr. Landes and Mr. Melnick are citizens of the United States
of America.
The business address of Mr. Obus, Mr. Landes, and Mr. Melnick, WCM and each
of the entities in the Wynnefield Group is One Penn Plaza, Suite 4720, New York,
New York 10119.
(d) and (e). During the last five years, neither Mr. Obus, Mr. Landes, Mr.
Melnick, WCM nor any of the entities comprising the Wynnefield Group has been
(i) convicted in a criminal proceeding (excluding traffic violations or similar
misdemeanors) or (ii) a party to a civil proceeding of a judicial or
administrative body of competent jurisdiction and as a result of such proceeding
was or is subject to a judgment, decree or final order enjoining future
violations of, or prohibiting or mandating activities subject to, federal or
state securities laws or finding any violation with respect to such laws.
Item 3. Source and Amount of Funds or Other Consideration.
The Wynnefield Group entities purchased their Shares for the consideration
shown in the following table:
(Page 5 of 8 Pages)
<PAGE>
Name Number of Shares Consideration Paid
---- ---------------- ------------------
Partnership 149,397 $1,680,658.89
Partnership-I 166,003 2,076,671.22
Fund 47,600 627,685.70
Such Shares were paid for from the working capital of each entity in the
Wynnefield Group, each of which maintains an investment fund, consisting of
capital contributions from their respective partners and investors and capital
appreciation derived therefrom for the principal purpose of buying and selling
securities (including financial and money market instruments) and interests in
domestic and foreign securities, including, without limitation, convertible
securities, stock index features contracts, options, puts and calls on stock and
warrants.
Item 4. Purposes of Transaction.
The entities comprising the Wynnefield Group intend to urge the Issuer's
management and its Board of Directors to consider all strategic options for
surfacing shareholders' value.
Except as set forth above, none of the entities in the Wynnefield Group has
any present plans or intentions to effect transactions that would result in or
relate to any of the actions described in subparagraphs (a) through (j) of Item
4 of Schedule 13D.
Item 5. Interests in Securities of the Issuer.
(a) As of the close of business on the date hereof, the entities comprising
the Wynnefield Group beneficially owned a total of 363,000 Shares, the separate
ownership of which is set forth in Item 3 of this Statement. Mr. Obus, Mr.
Landes and Mr. Melnick, by virtue of their status as managing members of WCM,
the general partner of the Partnership and Partnership-I, and Mr. Obus, Mr.
Landes and Mr. Melnick as officers of the Fund's investment manager, may be
deemed to have indirect beneficial ownership of the Shares owned by the
Wynnefield Group. The Shares owned by the Wynnefield Group represent
approximately 5.7% of the outstanding Shares of the Issuer, based on the
6,368,836 Shares reported by the Issuer as outstanding on March 3, 1999.
Pursuant to Rule 13d-4 of the General Rules and Regulations under the
Securities and Exchange Act of 1934, as amended (the "Exchange Act"), Mr. Obus,
Mr. Landes and Mr. Melnick disclaim beneficial ownership of any Shares owned by
the entities comprising the Wynnefield Group and disclaim membership in the
Wynnefield Group with respect to the Shares for purposes
(Page 6 of 8 Pages)
<PAGE>
of Sections 13(d) and 13(g) of the Exchange Act or for any other purpose under
any other provision of the Exchange Act or the rules and regulations promulgated
thereunder.
(b) Mr. Obus, Mr. Landes and Mr. Melnick, by virtue of their status as
managing members of WCM, the general partner of the Partnership and
Partnership-I, and Mr. Obus, Mr. Landes and Mr. Melnick as officers of the
Fund's investment manager, have the power to vote or to direct the vote and the
power to dispose and to direct the disposition of the Shares owned by the
entities comprising the Wynnefield Group.
(c) During the past 60 days, the entities comprising the Wynnefield Group
purchased the following Shares of Issuer in the NASDAQ Stock Market:
<TABLE>
<CAPTION>
ENTITY DATE NO. OF SHARES PRICE PER SHARE
------ ---- ------------- ---------------
<S> <C> <C> <C>
Partnership April 5 3,600 $ 9.91
Partnership April 16 5,500 9.945
Partnership April 20 2,000 10.125
Partnership April 28 8,000 10.2361
Partnership May 3 10,500 10.25
Fund April 5 2,000 $ 9.91
Fund April 16 3,000 9.945
Fund April 20 1,000 10.125
Fund April 28 4,500 10.2361
Fund May 3 6,000 10.25
Partnership-I April 5 4,400 $ 9.91
Partnership-I April 16 6,500 9.945
Partnership-I April 20 2,000 10.125
Partnership-I April 28 10,000 10.2361
Partnership-I May 3 12,500 10.25
</TABLE>
(Page 7 of 8 Pages)
<PAGE>
(d) Each of the entities comprising the Wynnefield Group as an owner of the
Shares reported in this Statement has the right to receive or the power to
direct the receipt of dividends from, or the proceeds from the sale of, the
Shares owned by such entity as reported in this Statement.
(e) Not applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to
Securities of the Issuer.
Neither Mr. Obus, Mr. Landes, Mr. Melnick, WCM nor any of the entities
comprising the Wynnefield Group has any contracts, arrangements, understandings
or relationships (legal or otherwise) with any person with respect to any
securities of the Issuer, including but not limited to any contracts,
arrangements, understandings or relationships concerning the transfer or voting
of such securities, finder's fees, joint ventures, loan or option arrangements,
puts or calls, guarantees of profits, division of profits or losses, or the
giving or withholding of proxies.
Item 7. Material to be Filed as Exhibits.
Not applicable.
SIGNATURES
After reasonable inquiry and to the best of their knowledge and belief, the
undersigned certify that the information set forth in this Statement is true,
complete and correct.
Dated: May 5, 1999
WYNNEFIELD PARTNERS SMALL CAP VALUE, L.P.
WYNNEFIELD PARTNERS SMALL CAP VALUE, L.P. I
By: Wynnefield Capital Management, LLC,
General Partner
By: S/Nelson Obus
-------------------------------------------
Nelson Obus, Managing Member
WYNNEFIELD SMALL CAP VALUE OFFSHORE FUND, LTD.
By: Wynnefield Capital, Inc.
S/Nelson Obus
-------------------------------------------
Nelson Obus, President
(Page 8 of 8 Pages)
