ORANGE COUNTY NOTES

Stock in Trade Tustin-based Luther Medical Products Inc., a catheter manufacturer, said its board of directors has approved a plan to increase the per-share value of its stock by reducing the amount of shares traded on the open market.

The plan, which involves a reverse stock split and the issuance of preferred stock, is designed to comply with a new regulation of the National Assn. of Security Dealers that is scheduled to go into effect July 1.

Under that regulation, the stock of companies with equity of $1 million to $2 million must trade for at least $1 per share to stay on the NASDAQ listing. Luther Medical has about $1 million in equity, while its 14 million shares of stock have been trading for 35 cents to 40 cents a share.

The company also hopes to issue preferred stock to help the company defend itself against the increased possibility of a hostile takeover.