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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 1)*
Morrow Snowboards, Inc.
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(Name of Issuer)
Common Stock, No Par Value
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(Title of Class of Securities)
61902C104
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(CUSIP Number)
Stephen C. Kircher, President & CEO
Capitol Bay Management, Inc.
2424 Professional Drive
Roseville, CA 95561
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(Name, Address and Telephone Number of Person Authorized
to Receive Notices and Communications)
September 30, 1999
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(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 which 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 / /.
NOTE: Schedules filed in paper format shall include a signed original and
five copies of the schedule, including all exhibits. See Rule 13d-7(b) for
other parties to whom copies are to be sent.
*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 disclosures provided in a prior cover page.
The information required on 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).
Page 1 of 7
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SCHEDULE 13D
CUSIP NO. 61902C104
1. NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
CAPITOL BAY MANAGEMENT, INC.
I.R.S. IDENTIFICATION NUMBER - 68-0308736
- -------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(A) / / (B) / /
- -------------------------------------------------------------------------------
3. SEC USE ONLY
- -------------------------------------------------------------------------------
4. SOURCE OF FUNDS
WC
- -------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or (e) / /
- -------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
CALIFORNIA
- -------------------------------------------------------------------------------
7. SOLE VOTING POWER
NUMBER OF -0-
SHARES --------------------------------------------------
BENEFICIALLY 8. SHARED VOTING POWER
OWNED BY 3,000,000
EACH --------------------------------------------------
REPORTING 9. SOLE DISPOSITIVE POWER
PERSON -0-
WITH --------------------------------------------------
10. SHARED DISPOSITIVE POWER
3,000,000
- -------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,000,000
- -------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES / /
- -------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
32.69%
- -------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON
CO
- -------------------------------------------------------------------------------
Page 2 of 7
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SCHEDULE 13D
CUSIP NO. 61902C104
1. NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
CAPITOL BAY SECURITIES, INC.
I.R.S. IDENTIFICATION NUMBER - 68-0299608
- -------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(A) / / (B) / /
- -------------------------------------------------------------------------------
3. SEC USE ONLY
- -------------------------------------------------------------------------------
4. SOURCE OF FUNDS
AF
- -------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or (e) / /
- -------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
CALIFORNIA
- -------------------------------------------------------------------------------
7. SOLE VOTING POWER
NUMBER OF -0-
SHARES --------------------------------------------------
BENEFICIALLY 8. SHARED VOTING POWER
OWNED BY 232,900
EACH --------------------------------------------------
REPORTING 9. SOLE DISPOSITIVE POWER
PERSON -0-
WITH --------------------------------------------------
10. SHARED DISPOSITIVE POWER
232,900
- -------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
232,900
- -------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES / /
- -------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.54%
- -------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON
BD
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Page 3 of 7
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SCHEDULE 13D
CUSIP NO. 61902C104
1. NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
CAPITOL BAY GROUP, INC.
I.R.S. IDENTIFICATION NUMBER - 68-0299607
STEPHEN C. KIRCHER
- -------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(A) / / (B) / /
- -------------------------------------------------------------------------------
3. SEC USE ONLY
- -------------------------------------------------------------------------------
4. SOURCE OF FUNDS
AF
- -------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or (e) / /
- -------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
CALIFORNIA
U.S.A.
- -------------------------------------------------------------------------------
7. SOLE VOTING POWER
NUMBER OF -0-
SHARES --------------------------------------------------
BENEFICIALLY 8. SHARED VOTING POWER
OWNED BY 3,232,900
EACH --------------------------------------------------
REPORTING 9. SOLE DISPOSITIVE POWER
PERSON -0-
WITH --------------------------------------------------
10. SHARED DISPOSITIVE POWER
3,232,900
- -------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,232,900
- -------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES / /
- -------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
35.23%
- -------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON
CO
IN, HC
- -------------------------------------------------------------------------------
Page 4 of 7
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STATEMENT PURSUANT TO RULE 13d-1
OF THE
GENERAL RULES AND REGULATIONS
UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED
The following information pursuant to this Amendment No. 1 amends
the Schedule 13D dated July 19, 1999 ("Schedule 13D"). Unless otherwise
indicated, each capitalized term used but not defined herein shall have the
meaning assigned to such term in the Schedule 13D.
Item 1 SECURITY AND ISSUER.
The response set forth in Item 1 of the Schedule 13D is amended and
restated in its entirety as follows:
This Schedule 13D relates to the Common Stock, no par value per
share (the "Shares"), of Morrow Snowboards, Inc. ("MSI"). The name of the
issuer of such securities and address of its principal executive office are:
Morrow Snowboards, Inc.
2600 Pringle Road, S.E.
Salem, OR 97302
MSI is incorporated under the laws of the State of Oregon.
Item 4 PURPOSE OF TRANSACTION.
The response set forth in Item 4 of the Schedule 13D is amended as
follows:
On September 30, 1999, CBM exercised the Rights and purchased
1,000,000 Shares at $.25 per Share and on October 9, 1999, CBM consummated
the conversion of the loan into 2,000,000 Shares.
As of the date hereof, CBS may be deemed to beneficially own 232,900
Shares, all of which are currently held in inventory for client accounts and
with respect to which CBS or its employees may have voting or investment
discretion, or both ("Managed Accounts"). CBS disclaims beneficial ownership
of the Shares held in Managed Accounts.
The Reporting Persons may be deemed to have a present plan or
prosposal which would relate to or result in matters set forth in
paragraphs (a) - (j) as follows:
(a) See item (b)
(b) CBM is currently negotiating (i) with potential candidates to
merge into MSI or a subsidiary thereof; (ii) for the infusion of additional
capital in an attempt to maintain the financial stability of MSI; and/or
(iii) a transaction utilizing the status of MSI as a public company. Any or
all of the foregoing may result in an extraordinary corporate transaction.
Further, it is likely that if any of the foregoing are negotiated on behalf
of MSI that MSI will issue additional shares of capital stock, amend its
articles of incorporation, effect a change in the current board of directors
and management and/or change its current business plan, any or all of which
would likely create a material change in the business or corporate structure
of MSI.
(c) See item (b)
(d) See item (b)
(e) See item (b)
(f) See item (b)
(g) Not applicable.
(h) Not applicable.
(i) Not applicable.
(j) See item (b)
Page 5 of 7
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Item 5 INTEREST IN SECURITIES OF THE ISSUER.
The response set forth in Item 4 of the Schedule 13D is amended and
restated in its entirety as follows:
(a) The percentage of Shares reported beneficially owned by each
person herein is based on the sum of 6,176,556 Shares outstanding as
indicated on MSI's most recent Form 10-K dated July 7, 1999, for the fiscal
year ended December 26, 1998. The percentages below include the issuance of
the 3,000,000 Shares described herein.
As of October 9, 1999:
(i) CBM beneficially owns 3,000,000 Shares, which constitutes
32.69% of the Shares outstanding.
(ii) CBS may be deemed to beneficially own 232,900 Shares held in
Managed Accounts, which constitutes 2.54% of the Shares outstanding.
CBS disclaims beneficial ownership of the Shares held in
Managed Accounts. Each of CBS and CBM disclaims beneficial ownership of the
Shares held by the other.
(iii) Neither CBG nor Mr. Kircher directly own any Shares. Each of
CBM and CBS are wholly-owned subsidiaries of CBG and CBG is majority-owned by
Mr. Kircher. Therefore, Mr. Kircher may be deemed to control CBG which may be
deemed to control CBM and CBS. Thus, such Reporting Persons May be deemed to
share voting power and investment power with respect to 3,232,900 Shares. Mr.
Kircher and CBG may be deemed to beneficially own 35.23% of the outstanding
Shares. Mr. Kircher and CBG each disclaim beneficial ownership of such
3,232,900 Shares.
(b) The number of Shares as to which each Reporting Person has
sole power to vote or to direct the vote, shared power to vote or to direct
the vote, sole power to dispose or direct the disposition, or shared power to
dispose or direct the disposition is set forth on the cover page to this
Amendment No. 1 to Schedule 13D, and such information is incorporated herein
by reference.
(c) During the sixty day period ended as of the date hereof,
except for the transactions described herein, there have been no transactions
with respect to the class of securities reported on by the Reporting Persons
named in response to paragraph (a).
(d) None
(e) Not Applicable
In addition the issuer's current report on Form 8-K filed
September 9, 1999 and exhibits thereto are incorporated by reference herein.
Page 6 of 7
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SIGNATURES
The filing of this Amendment No. 1 to Schedule 13D and the disclosures herein
shall not be deemed an admission that the Reporting Persons have had an
acquisition of beneficial ownership of Shares or otherwise has become subject
to an obligation to file a Schedule 13D relating to MSI, and shall not be
deemed an admission that the Reporting Persons are the beneficial owner of
MSI Shares for any purpose other than under Sections 13(d) and (g) of the
Securities Exchange Act of 1934 and the rules thereunder.
After reasonable inquiry and to the best of their knowledge and belief, each
of the undersigned certifies that the information set forth in this
statement is true, complete and correct.
Date: October 9, 1999
CAPITOL BAY MANAGEMENT, INC.
By: /s/ Stephen C. Kircher
-----------------------------------
Stephen C. Kircher
President
CAPITOL BAY SECURITIES, INC.
By: /s/ Stephen C. Kircher
-----------------------------------
Stephen C. Kircher
President
CAPITOL BAY GROUP, INC.
By: /s/ Stephen C. Kircher
-----------------------------------
Stephen C. Kircher
President
By: /s/ Stephen C. Kircher
-----------------------------------
Stephen C. Kircher,
an individual
Page 7 of 7
