DAMON CORPORATION FILES COMMON STOCK OFFERING
DAMON CORPORATION FILES COMMON STOCK OFFERING NEEDHAM HEIGHTS, Mass., March 2 /PRNewswire/ -- Damon Corporation
(NYSE: DCL) announced today that it has filed a registration statement with the Securities and Exchange Commission for a public offering of 3,000,000 shares of common stock -- 1,000,000 shares to be sold by the company and 2,000,000 shares to be sold by current stockholders, none of whom are members of management. The offering will be managed by Bear, Stearns & Co. Inc., Smith Barney, Harris Upham & Co. Incorporated, Oppenheimer & Co., Inc. and Paribas Capital Markets.
Damon stated that it would use the net proceeds of the offering to reduce outstanding revolving credit loans, subject to reborrowing. Funds reborrowed may be used for general corporate purposes, including acquisitions of clinical laboratory businesses. Damon will not receive any of the proceeds from the sale of shares by selling stockholders. The shares being sold by selling stockholders are expected to consist principally of shares issued in the company's August 1991 rights offering that are generally restricted from transfer except pursuant to underwritten public offerings. These transfer restrictions expire on May 6, 1992, and the offering is intended to facilitate the orderly distribution of these shares. Although the precise group of selling stockholders has not yet been determined, it is anticipated that Ballantrae Partners, L.P., one of the participants in the 1989 acquisition of Damon, will sell a portion of its shares. However, neither RLR Partners, L.P., the general partner of Ballantrae, nor Robert Rosen, Glen Kassan or Donald Netter, members of Damon's senior management team and partners in RLR, will receive any of the proceeds from the shares sold by Ballantrae. Rather, the proceeds will go to the limited partners of Ballantrae. Damon Corporation, one of the nation's leading clinical laboratory testing companies, provides a full range of high quality, technologically advanced testing services to the medical community, corporations, U.S. government agencies and municipalities nationwide and is a leader in substance abuse testing, preventative health screening and AIDS testing. -0- 3/2/92 /CONTACT: Lissa Perlman of Kekst and Company, 212-593-2655, for Damon/ (DCL) CO: Damon Corporation ST: Massachusetts IN: HEA SU: OFR SM -- NY015 -- 3786 03/02/92 09:27 EST
|Printer friendly Cite/link Email Feedback|
|Date:||Mar 2, 1992|
|Previous Article:||IVAX ENTERS INTO AGREEMENT TO ACQUIRE THE SOLOPAK DIVISION OF SMITH & NEPHEW, INC.|
|Next Article:||ECOLAB TO DIVEST CHEMLAWN; ANNOUNCES 1991 RESULTS|