Discovery Associates, the parent company of the Leo's Stereo chain of electronics stores, said it raised $3.6 million from the private sale of 6 million common shares and an unsecured loan. The company did not identify the securities' buyer or buyers.
The proceeds will enable Discovery's common stock to remain part of the NASDAQ trading system. The company said last week that the stock was in danger of being dropped from the system because Discovery's capital had fallen below the $375,000 minimum required for NASDAQ listing.
NASDAQ, the National Assn. of Securities Dealers' Automated Quotation system, is the main source of trading information for brokers and investors in the over-the-counter market.
Discovery also announced that it moved its headquarters from Encino to Long Beach, where Leo's Stereo has its main facility.