Alyn Corporation Responds to Recent Sharp Decline in Share Price and Provides Business Update.IRVINE, Calif.--(BUSINESS WIRE)--July 2, 1998--Steven S. Price, Alyn Corporation's (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ALYN) new President & Chief Executive Officer, provided his reaction today to the recent negative trend in Alyn's stock price. Price, who has now been with Alyn for two months, stated, "It is unfortunate that the announcement of our intention to offer shareholders the opportunity to purchase $10 million in additional stock appears to have lead to a recent decline in our stock price." Alyn announced on June 29, 1998 that it would offer shareholders the opportunity to purchase additional stock to add working capital for Alyn. Price continued, "Alyn has over $8 million in cash at the end of June. The Rights Offering is to provide us additional working capital as we now begin production, to support the growth of our business. We have also been reducing our working capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. by taking positive steps to reduce our current cash burn rate and to slow its growth as the Company grows. We believe these are prudent steps to take now, even though Alyn's future looks brighter today than it did even 60 day ago." The Company is focusing its product development efforts in five areas -- premium priced golf club heads and shafts, selected automotive components, aerospace components, disk substrates for computer hard drives and nuclear shielding for waste storage casks. Recent communications by the Company have reported positive momentum in its golf club and automotive businesses, including additional golf programs with several well-known golf club companies. The Company has also recently received advanced quality system approval by three major aerospace/air frame manufacturers. Since receiving these approvals, the Company has received a three-year contract to produce $750,000 of cargo handling equipment for multiple Boeing aircraft. The Company has also received a five-year contract to produce forged valve body hydraulic actuators Hydraulic actuator A cylinder or fluid motor that converts hydraulic power into useful mechanical work. The mechanical motion produced may be linear, rotary, or oscillatory. for the commercial aircraft industry and an order for overhead storage bin components for Airbus Industries. Price commented, "We are just beginning to see the positive results from our strategic manufacturing investment over the past 18 months." In addition to the aerospace/air frame business, the Company has received production orders for F-16 missile launch rails, extruded tube for military helicopters Military helicopters are helicopters used by military forces. They can be found in a variety of roles in diffferent militaries of which the tactical airlift mission is the most common. and tubing for a lacrosse stick A lacrosse stick (sometimes called a crosse) is a lacrosse player's most important piece of equipment. Every lacrosse stick consists of two parts, a head and a handle. They are often purchased separately. manufacturer. Progress continues with the Company's computer hard-disk program. Several surface quality issues remain, relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc industry requirements for a "pit-free" surface, although the Company believes it has developed solutions to these issues which are now in testing. Large-scale disk production is not expected until the second half of 1999. Price added, "We are also pleased with the progress we have recently made in our nuclear shielding efforts. We have shipped prototypes to our customer whose evaluation of these we believe will lead to production later this year." Price completed his comments saying, "From my perspective, the outlook for Alyn Corporation has never been better. We are focused on those projects we expect to produce near-term revenues, net income and cashflow and we believe our shareholders will see the positive momentum grow from these programs as the year progresses. "The pledge by our outside directors and their associated funds to purchase at least $5 million of this offering and the donation by Robin Carden, Alyn's Founder, of 500,000 shares to reduce dilution, demonstrates their recognition of our recent progress toward achieving the opportunity we see for the Company." Alyn Corporation provides customized metal matrix composite Metal matrix composite A material in which a continuous metallic phase (the matrix) is combined with another phase (the reinforcement) that constitutes a few percent to around 50% of the material's total volume. solutions to meet the specific product needs of its customers in consumer and industrial markets. Alyn is a vertically-integrated metal matrix composite company offering advanced metal matrix composites, customer driven engineering solutions and strategically developed manufacturing processes. The Company engages in joint development projects with many of its customers in selected large markets where the design and production of metal matrix composite-based products provide those customers with products that are innovative, reduce their overall production cost, or provide value added Value Added The enhancement a company gives its product or service before offering the product to customers. Notes: This can either increase the products price or value. performance. A registration statement relating to the securities in the Rights Offering has been filed with the Securities and Exchange Commission, but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in the Rights Offering in any State or country in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such State or country. A copy of the preliminary prospectus Preliminary Prospectus A first draft registration statement filed by a firm prior to proceeding with an initial public offering of securities. The document, filed with the Securities & Exchange Commission, is intended to provide pertinent information to prospective shareholders filed with the SEC is available through the Company. Please write to Investor Relations Investor relations The process by which the corporation communicates with its investors. , Alyn Corporation, 16761 Hale Avenue, Irvine, CA 92606 or call 1-949-475-1525. A copy of the final prospectus Final Prospectus A legal document stating the price of a newly issued security, the delivery date, and other facts that are important for investors. Notes: The final prospectus must be given to every investor who purchases a new issue of registered securities. will be available following the effective date of the offering from the Company's Information Agent, Innisfree M&A Incorporated, 501 Madison Avenue Madison Avenue, celebrated street of Manhattan, borough of New York City. It runs from Madison Square (23d St.) to the Madison Bridge over the Harlem River (138th St.). In the 1940s and 50s, some of the major U.S. , New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY 10022. Shareholders with questions are encouraged to contact Innisfree toll free at 1-888-750-5834 or the Company at 1-949-475-1525. Except for historical information contained herein, this document contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements involve known and unknown risks and uncertainties that may cause the Company's actual results or outcomes to be materially different from those anticipated and discussed herein. Further, the Company operates in an industry sector where securities values may be volatile and may be influenced by regulatory and other factors beyond the Company's control. Important factors that the Company believes might cause such differences are discussed in the cautionary statements accompanying the forward-looking statements in the Company's Prospectus on Form S-3, dated June 29, 1998 and its Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the Securities and Exchange Commission. In assessing forward-looking statements contained herein, readers are urged to read carefully all cautionary statements contained in those filings with the Securities and Exchange Commission. Note to Editors: Alyn Corporation's news releases are available on the Internet. Visit the company on the World Wide Web at http://www.alyn.com. CONTACT: Alyn Corporation Richard Little Richard Little may refer to:
Chief Financial Officer 949/475-1525 Email: rlittle@alyn.com |
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