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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
___________________
FORM 8 - K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event to report) August 7, 1997
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The Sled Dogs Company
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(Exact name of registrant as specified in charter)
Colorado 1-12850 84-116-8832
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
212 Third Avenue North, Suite 420, Minneapolis, MN 55401
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (612) 359-9020
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Item 5. Other Events
On July 30, 1997, The Sled Dogs Company (the "Company") made the following
announcement:
THE SLED DOGS COMPANY REPORTS FY1998
FIRST QUARTER RESULTS AND ANNOUNCES NEW DIRECTOR
(MINNEAPOLIS, MINNESOTA), July 30, 1997 -- The Sled Dogs Company (OTCBB: SNOW)
today reported a net loss of $400,290, or $.03 per share, on net sales of
$55,208 for the first quarter ended June 30, 1997, compared to a net loss of
$1,369,635, or $.12 per share, on net sales of ($108,665) for the quarter ended
June 30, 1996.
"The improvement in net loss for the first quarter compared to the prior year
quarter, was primarily due to the elimination of certain non-recurring expenses
incurred in last year's quarter (the 'Yellow Snow' infomercial production
expense and a provision for inventory obsolescence), and our concerted efforts
to reduce overall operating expenses," said Sled Dogs' chairman Kent Rodriguez.
In other news, Sled Dogs announced the appointment of Robert J. Corliss to its
board of directors. Mr. Corliss is the founder and president/CEO of Infinity
Sports & Leisure Group, Inc. Infinity Sports designs, manufactures and
distributes athletic product under the Bike Athletic and Marksman brand names.
Prior to founding Infinity, Mr. Corliss was president/CEO of Herman's Sporting
Goods, Inc. During his tenure there he assembled a professional management team
which guided the company's return to profitability and subsequent sale in 1993.
Mr. Corliss also served as principal/managing director for Senn-Delaney
Management Consultants, the largest retail consulting firm in the United
States. While there he founded Senn-Delaney International, Inc. and became
involved with Europe's largest leveraged buyout in 1989. His other board
experience includes work with the National Retail Federation, National Retail
Institute and Performance Nutrition (NASDAQ).
"Bob brings a wealth of national and international sporting goods distribution
and sourcing experience to Sled Dogs and we're confident he'll play a critical
role in our development," said Rodriguez.
The Sled Dogs Company markets, manufactures and distributes Sled Dogs snow
skates and related accessories and has created the world's newest winter sport
of snow skating. The Sled Dogs Company has developed the world's first patented
snow skate that integrates a comfortable, supportive boot and a unique
replaceable base allowing the skate to glide over the snow. In addition to its
U.S. roots, Sled Dogs has distributors in Australia, Canada, Norway, New
Zealand, Korea and Japan. At present, snow skating is being enjoyed at nearly
all ski/snow areas across the United States and Canada.
-MORE-
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Forward looking statements contained in this release are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Certain important factors could cause results to differ materially from those
anticipated by some statements made in this release. You are cautioned that all
forward-looking statements involve risks and uncertainties. Among the factors
that could cause results to differ materially are the following: lack of
availability of financing; inability to control costs or expenses;
manufacturing and distribution problems; and lack of market acceptance of the
Company's products. Reference is also made to the risk factors contained in the
Company's Registration Statement on Form S-3 (No. 33-80875), which are
incorporated herein by reference.
THE SLED DOGS COMPANY
(OTCBB: SNOW)
<TABLE>
<CAPTION>
Three months ended June 30,
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1997 1996
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<S> <C> <C>
Net sales (1) $ 55,208 $ (108,665)
Net loss (400,290) (1,369,635)
Net loss per common share $ (0.03) $ (0.12)
Weighted average number of
shares outstanding 13,513,193 11,749,999
</TABLE>
(1) A reduction in net sales occurred during the three months ended June 30,
1996 due to some customer returns being accepted under a Sled Dogs/Retailer
shared risk program.
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On August 6, 1997, the Company made the following announcement:
THE SLED DOGS COMPANY SIGNS FORBEARANCE AGREEMENT WITH NORWEST CREDIT, INC.
(MINNEAPOLIS, MINN.), August 6, 1997 -- The Sled Dogs Company (OTCBB: SNOW)
announced today that it has signed a Forbearance Agreement with Norwest Credit,
Inc. ("NCI"), its asset-based lender. The Forbearance agreement states that
NCI is willing to forbear from exercising its rights and remedies as a secured
creditor until the earlier of September 30, 1997, failure by the Company to
perform its obligations under this Forbearance Agreement, or the occurrence of
any Event of Default under its Loan Agreement with NCI other than those
existing and known to NCI on June 30, 1997. The Forbearance Agreement further
states that all amounts due under the Loan Agreement shall become due and
payable on October 1, 1997. If not paid by October 1, 1997, then, at NCI's
option, the Company will begin self liquidating the assets of the Company
pursuant to a Liquidation Agreement, or turn over to NCI, immediately upon
demand by NCI, all property of the Company pursuant to a Repossession and
Occupancy Agreement.
"The Company appreciates the patience shown by NCI over the past few months
while it has been in default of the Loan Documents. We are hopeful that the
Company can meet its obligations under the Forbearance Agreement, said The Sled
Dogs Company Chairman Kent Rodriguez. Rodriguez further stated that "The
Company continues to work on securing additional capital and is in the process
of searching for another asset-based lender to step into NCI's position."
The Sled Dogs Company markets, manufactures and distributes Sled Dogs snow
skates and related accessories and has created the world's newest winter sport
of snow skating. The Sled Dogs Company has developed the world's first patented
snow skate that integrates a comfortable, supportive boot and a unique
replaceable base allowing the skate to glide over the snow. In addition to its
U.S. roots, Sled Dogs has distributors in Canada, Japan, Australia and Norway.
At present, snow skating is being enjoyed at nearly all ski/snow areas across
the United States and Canada.
Forward looking statements contained in this release are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Certain important factors could cause results to differ materially from those
anticipated by some statements made in this release. You are cautioned that all
forward-looking statements involve risks and uncertainties. Among the factors
that could cause results to differ materially are the following: lack of
availability of financing; inability to control costs or expenses;
manufacturing and distribution problems; and lack of market acceptance of the
Company's products. Reference is also made to the risk factors contained in the
Company's Registration Statement on Form S-3 (No. 33-80875), which are
incorporated herein by reference.
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SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Registrant has caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
THE SLED DOGS COMPANY
Dated: August 7, 1997 By: /s/ Michael P. Wise
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Michael P. Wise
Chief Financial Officer
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