Martin Lawrence Limited Editions Inc., a Van Nuys-based art publisher and retailer, said it plans to raise between $2.5 million and $5.18 million through a private offering of preferred stock.
The recession-battered company said proceeds from the offering will be used to increase publishing activities, purchase new inventory, expand sales efforts, open new galleries and remodel existing ones.
The price of the stock will be $10 per share, the company said, and the initial offering is scheduled to conclude by Dec. 29. Dividends on the preferred shares will be paid semiannually at 10% per year.
Each share of preferred stock will automatically convert into 10 shares of the company's common stock if the price of common stock equals or exceeds $2.25 per share for 20 consecutive trading days, the company said.
The preferred stock is redeemable by the company on or after Jan. 1, 1997.