Electro Funds Corp., a holding company for computer parts manufacturer Complete Management Systems in Costa Mesa, is calling in its 2.5 million outstanding warrants at $1 apiece and intends to raise an additional $5 million to $10 million in private bond placement, the company said Monday.
The company will issue one share of common stock and a new warrant for each warrant that investors turn in within 30 days. After that period, the company will redeem any old warrants not turned in for 1/10th of a cent, said Jim Farooquee, the company's president and chief executive.
The new warrants can be called at a future date for an equal amount of common stock at $1.50 a share.
Farooquee said the company is also in the process of arranging a private placement of debentures--corporate debt--that will raise from $5 million to $10 million. No date was given for closing the deal.
Electro Funds is changing its name to CMS Enhancements Inc. and will re-form as a single company without a subsidiary, he said. CMS is a computer parts manufacturer and distributor.