International Remote Imaging Systems of Chatsworth sold a 9.5% stake to a Japanese medical instruments manufacturer to raise money for product development.
Under the agreement, TOA Medical Electronics will pay $10 million to $20 million over five years to IRIS, which makes automated systems used to analyze urine and is developing instruments to analyze biopsy specimens.
Iris already has received $5 million of the money from TOA. Part of that payment was used to buy 1.7 million shares of IRIS common stock, making TOA the largest IRIS shareholder. Under the arrangement, TOA is restricted from selling its shares publicly for two years.