Cash-Shy Lasermed Lays Off Third of Staff in Costa Mesa

Lasermed Corp. of Costa Mesa said Tuesday the company is experiencing a cash shortage and is seeking outside financing. In response to the shortage, the 23-employee company, which makes equipment for eye surgery, has laid off about a third of its workers. However, company officials said many of those laid off are working temporarily without pay.

Lasermed President John Baldridge also said the recently announced sale of $300,000 worth of debentures to a New Jersey venture capital group was called off on April 18. He said, however, that discussions to reinstate the deal are continuing. Lasermed has been trying since December to raise about $1.5 million.

Last week, Unicorn Investments Ltd. and Unicorn Investments II, of Cranford, N.J., informed Lasermed that the investment group was rescinding the offer to purchase $300,000 in convertible subordinated debentures because of certain disagreements about Lasermed’s projected cash flows.

“We thought we had concluded a good deal for both parties,” said Baldridge in a phone interview. “We have discussions set up for next week. We are trying to resolve the differences.”

Unicorn executives could not be reached for comment.

On April 16, Lasermed received clearance from the U.S. Food and Drug Administration to market a non-laser irrigation and aspiration device used for cataract surgery. Baldridge said the product will be on the market this summer. The company, which employed about 23 before the recent layoff, also sells and services equipment and supplies used by ophthalmologists.

The company raised $2.5 million in a public stock offering in February, 1984, but reported a net loss last year of $1.7 million on revenues of $566,907.