Bristol Research Plans to Go Public to Expand Company, Repay Debts

Bristol Research Corp., a Costa Mesa computer manufacturer, plans to go public by selling up to $4 million worth of stock and warrants to expand its personal computer business, according to a Securities and Exchange Commission filing.

The year-old Bristol Research designs, produces and markets motherboards for computers compatible with IBM’s Personal Computer/AT models. The boards are microprocessors that provide logic and memory capabilities, which makes it possible for the computers to use IBM software and hardware.

Proceeds from the offering will be used to expand the company and repay $505,000 in debts, according to the filing.

About $700,000 from the sale may be used to develop new products, including four new motherboards, which should be on the market by mid-November.

The company may spend an additional $400,000 to relocate the corporate offices and testing facilities and to obtain a new assembly plant. Three sites in Costa Mesa are being considered, Chairman E. Maxwell Malone said.

The motherboard manufacturer has grown from four employees beginning in August, 1987, to 35, including designers, production workers and sales people.

In the filing, the company said it is offering 800,000 units, which consist of one common share and one warrant, the latter entitling the owner to purchase one half of a common share at $3.13 each.

If all the stock is sold, the stake of Bristol Research’s officers and directors as a group will fall to 44.4% from 67.1%. Malone’s stake will shrink to 11.8% from 17.9%.

New York City-based Whale Securities Co. has been listed as the underwriter for the offering.