Anaheim Firm Announces Plans for Stock Offering

Metalclad Corp. said it has reached a “preliminary understanding” with a New York investment bank for a secondary offering of its common stock to raise about $3 million. Chief Executive Officer Leland E. Sweetser declined to identify the investment bank, citing the advice of the company’s legal counsel.

The Anaheim-based insulation and asbestos removal company said it will use proceeds from the stock offering to reduce corporate debt, to expand its asbestos abatement and environmental pollution control business and for working capital or general corporate purposes.

Metalclad--traded over the counter under its former name, Bower Industries--said it expects to file a registration statement with the Securities and Exchange Commission in late October.