In an effort to strengthen its balance sheet and step up its marketing efforts, Systonetics has agreed to sell 36% of its stock to Singapore investors for $600,000.
The Fullerton-based computer software company said it has sold 1.5 million newly issued shares to Wearnes Technology Ltd. of Singapore and Advanced Logic Research Inc., an Irvine computer manufacturer and a Wearnes subsidiary.
Wearnes Technology, a subsidiary of Singapore-based Wearne Brothers Ltd., is involved in the manufacture of personal computers, disk drives, keyboards, medical electronics equipment and other technology products.
Under the deal, Wearnes and ALR will have the option of acquiring an additional 500,000 shares--or another 13% of Systonetics' stock--for 55 cents per share until April 15, 1989. After that date, the purchase price would increase to 75 cents until April 15, 1990.
The agreement prohibits Wearnes from acquiring more than 49% of Systonetics during the next two years, said David W. Larsen, Systonetics' chief financial officer.
Systonetics said the chief executive officers of Wearnes and ALR will join Systonetics' board of directors.
Wearnes Technology previously has not been an owner of Systonetics stock, Larsen said. "We only recently had some discussions with them, and there seemed to be some synergism between our respective business activities," he said.
"We wanted to raise some capital to reduce debt and take on some marketing initiatives," Larsen said. Systonetics has about $400,000 in long-term debt--or loans due in a year or more, he said.
For the nine months ended Nov. 30, Systonetics lost $324,000 on revenues of $4.37 million.
Systonetics said it plans a private sale of 375,000 shares to other investors at 40 cents a share.