Neptune Society plans IPO in latest reincarnation try. (Wall Street West).

NEPTUNE Society Inc., the at-sea burial and cremation service that's already experienced one Wall Street death, is attempting a rebirth.

The Burbank-based company has filed papers with the Securities and Exchange Commission to issue $6 million in common stock and convertible bonds.

In most initial public offerings, a company raises new equity to fund its growth plans. In this IPO, all the stock and convertible bonds will be sold current shareholders or debtholders.

Shareholders fared miserably in the first go-round on Wall Street -- so poorly that the company was delisted from Nasdaq, and is now trading on the over-the-counter bulletin board for 60 cents a share. As recently as the second quarter of 2000, a share of Neptune commanded $56.50.

The latest filing, in connection with a one-for-four reverse split, is in part an attempt to become re-listed, and thus is technically an initial public offering. The company's five largest shareholders, owning a majority of the company's stock, are liquidating their stakes, as are many smaller shareholders.

With some certainty, Neptune Society can say it's competing in a market that's destined to grow. "The number of deaths in North America has risen by 1 percent annually between 1980 and 1998, and is expected to continue to grow at a similar rate over the next 10 to 15 years. The growth in death rates results... from the demographics of an aging population as the baby boomer generation matures," Neptune said in the filing.

In its prospectus, Neptune said it plans to conduct an acquisition program to expand from its current markets in California, Florida, Iowa, New York, Oregon, Colorado and Washington.

Despite favorable demographics, others in the funeral industry have run into trouble pursuing similar plans. Like them, Neptune Society has had its problems of late.

It has operated in the red in the past the two years and it warned in its filing that it should be considered a "high-risk" investment.

Many of the recent losses are attributable to a writedown on the disposal of an operation in Portland, and to a change in accounting practices that defers income to upcoming quarters.

For the quarter ended June 30, Neptune Society reported a loss of $1.4 million, compared with a loss of $1.7 million in the like year-earlier period. Revenues were $3.1 million.

Company officials, in the SEC-mandated "quiet period," could not be reached for comment.

Staff Reporter Conor Dougherty and Dennis Walters of Bloomberg News contributed to this column. Contributing columnist Benjamin Mark Cole can be reached at [e-mail].