Electronic Clearing Plans to Sell More Stock

Electronic Clearing House Inc., an Agoura Hills provider of electronic credit card and check-clearing services, plans to sell an additional 3.6 million common shares through the securities firm J.W. Gant & Associates.

In a filing with the Securities and Exchange Commission, the company said it plans to use the sale’s proceeds to repay debt, purchase equipment and develop software. It also warned that the stock would be an extremely speculative investment because of Electronic Clearing’s financial problems.

The company lost $171,000 on revenue of $6.34 million in the nine months that ended June 30, after losing $722,000 in its fiscal year that ended Sept. 30, 1989. The company has had no earnings from operations since fiscal 1985, and its existing stock trades for about 87 cents a share in over-the-counter trading.

In April, the SEC charged the company with late filing of several financial reports, and Electronic Clearing agreed to a consent judgment barring it from further violations of federal securities regulations. The company said it planned to file all future financial reports on time.