CompuSave Offering Fails to Meet Goal

CompuSave Corp. said Thursday that a rights offering it had hoped would raise as much as $5 million has expired without raising enough cash.

Officials of the troubled Irvine-based video machine maker could not be reached Thursday, and it could not be immediately determined how much money had been raised. CompuSave said in a prepared statement that any money it received “will be returned promptly to subscribers.”

The rights offering had been the latest effort by the financially strapped company to raise the cash that it needs to stay in business.

Under terms of the offering, existing shareholders would have been able to buy one share of a new preferred stock and one warrant, which entitled the holder to buy three additional shares of CompuSave common stock for $1 each. The price of each unit was $7.75.

In over-the-counter trading Thursday, CompuSave shares closed at $1.065, down more than 6.25 cents for the day on volume of 131,300 shares.

As previously reported, CompuSave lost $1.3 million on revenue of $235,890 during the fiscal third quarter, ended Feb. 28. Since its founding in May, 1983, CompuSave’s net losses have totaled $11.6 million.