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Premier Laser Plans Stock Offering : Finance: Firm is going public to raise $10.5 million. Much of that would go to pay off company debt.

October 29, 1994|DEBORA VRANA | TIMES STAFF WRITER

IRVINE — Premier Laser Systems Inc., a medical devices maker, is expected to go public with a $10.5-million stock offering in mid-November, according to documents filed with the Securities and Exchange Commission.

Premier plans to sell 2.1 million units priced at $5 each, according to its filing. The units consist of one share of common stock and two warrants, which can later be used to purchase common stock for $4.65 and $5.70 a share. Of the approximately $10.5 million that would be raised from the offering, an estimated $4.5 million of the proceeds would be used to pay off existing debt.

The stock issue will be sold through D. H. Blair Investment Banking Corp. in New York, which is being investigated by the SEC for various questionable business practices, according to the filing. Premier would be listed on the Nasdaq market.

Created three years ago, Premier reported sales of $2 million for its fiscal year ending March 31, as compared to $1.5 million for the nine months ending March 31, 1993, according to documents filed with the SEC.

The company has continuously operated at a loss, reporting a net loss of $3.1 million for its last fiscal year, as compared to a loss of $2 million reported for the nine months the year before. The company is comparing 12-month results with nine-month results because it changed the way it calculated its fiscal year in 1993.

With more than 30 workers in Irvine, the company makes a variety of laser devices including a dental laser tool for cutting soft tissue and another that removes layers of cellular tissue in the eye. It is seeking federal approval for a laser to cut bones and teeth. In July, Premier signed a $1.5-million pact to export its medical devices to Japan, Taiwan and China.

Premier was formed in September, 1991, when Pfizer Inc. sold its laser division to an employee management group, which included current Premier President Dr. Colette Cozean, who could not comment on the plans to go public because of SEC restrictions about such discussions prior to a stock offering.

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