400,000 Shares Offered by Gateway at $7 Each

Gateway Communications Inc. said it took 400,000 shares of its common stock to the market Thursday in a secondary public offering.

The offering, at $7 a share, included 200,000 shares from the company’s treasury and 200,000 shares held by Raymond Noorda, a one-time company director who holds about 25% of Gateway’s outstanding shares.

Company officials said proceeds from the offering will be used to finance sales, marketing and research activities, as well as to repurchase about $250,000 in warrants.

Once a penny stock, Gateway went public in 1984 in an initial offering that raised $1.2 million. In June, the company had a 200-for-1 reverse split, which raised the share price to $12 a share from 6 cents. It closed in over-the-counter-market trading Thursday at $7 a share.