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O.C. BUSINESS PLUS | ORANGE COUNTY BRIEFLY

Radiance Medical Plans to Sell Shares

August 25, 2000|Bloomberg News

Radiance Medical Systems Inc. plans to sell about 2.85 million shares of common stock, according to a registration statement filed with the Securities and Exchange Commission.

The stock sale will include 1.5 million shares that the company will offer and about 1.35 million shares that its former parent company, EndoSonics Corp., will sell, according to the filing. The 1.35 million shares represent EndoSonics' entire stake in Radiance Medical.

Radiance is an Irvine-based maker of special catheters designed to place radiation directly into patients to prevent re-clogging of their arteries after treatment for atherosclerosis. The company didn't say how much it expects the sale of its shares to raise after expenses.

Radiance shares rose 31 cents to $14.63 on the Nasdaq market. At that price, the 1.5 million shares would bring in about $22 million before expenses. Radiance shares have almost tripled so far this year.

The 1.5 million shares will represent an 11.65% stake in the company after the offering. Radiance will have about 12.9 million common shares outstanding, giving it an implied market value of about $188 million, based on the closing price Thursday.

Radiance will use the proceeds to fund clinical development of one of its products and to support operations, enhance its sales and marketing program, and for other corporate purposes, the filing said.

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