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DAMON UNDERWRITERS EXERCISE OVERALLOTMENT OPTION

 DAMON UNDERWRITERS EXERCISE OVERALLOTMENT OPTION
 NEEDHAM HEIGHTS, Mass., April 1 /PRNewswire/ -- Damon Corporation


(NYSE: DCL) announced today that in connection with its common stock offering that is scheduled to close on April 6, 1992, the underwriters have exercised the overallotment option, in full, for an additional 450,000 shares. These shares will be provided by Ballantrae Partners, L.P., a selling stockholder. The offering has been priced at $21 per share.
 The company is selling 1,000,000 shares of common stock in the offering with an additional 2,450,000 shares, including the 450,000 shares from the overallotment option, being sold by certain selling stockholders, none of whom are members of management. The company will now have approximately 16.1 million shares outstanding. The offering was managed by Bear, Stearns & Co., Inc., Smith Barney, Harris Upham & Co. Incorporated, Oppenheimer & Co., Inc. and Paribas Capital Markets Group.
 The approximate $19.4 million of net proceeds to Damon from the offering will be used 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 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 this offering is intended to facilitate the orderly distribution of these shares. Ballantrae Partners, L.P., one of the participants in the 1989 acquisition of Damon, and one of the selling stockholders, will sell a portion of its shares.
 However, neither RLR Partners, L.P., the general partner of Ballantrae, nor Messrs. Rosen, Kassan or Netter, who are each directors and members of Damon's senior management team and the general partners of 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- 4/01/92
 /CONTACT: Lissa Perlman or Roanne Kulakoff of Kekst and Company, 212-593-2655, for Damon Corporation/
 (DCL) CO: Damon Corporation ST: Massachusetts IN: SU:


TQ -- NY085 -- 4013 04/01/92 16:06 EST
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Publication:PR Newswire
Date:Apr 1, 1992
Words:423
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