CMS Enhancements Inc., a Tustin computer company, has filed papers with the Securities and Exchange Commission for a secondary public stock offering of 3 million shares of common stock.
The proposed offering is expected to raise $10 million, which CMS will use for general business expansion purposes, said Ted James, director of investor relations.
CMS said the offering would consist of 2 million shares of newly issued common stock and 1 million shares to be sold by current and former CMS management. Also, up to 450,000 shares may be sold by the company to cover over-allotments, if any.
According to James, the 1 million management shares include 500,000 shares owned by Mason Tarkeshian, a company co-founder and former executive vice president who resigned from the firm in January, and 300,000 shares held by Tom Ong, a former executive vice president who also left the company in January.
CMS President Jim Farooquee is selling 100,000 of the 1.7 million shares he owns. And James D’jen, executive vice president of finance, is disposing of 100,000 of the 1.7 million shares he holds.