New Image Industries Launches Spinoff Venture

New Image Industries implemented its previously announced spinoff of its Styles on Video Inc. unit to New Image’s stockholders Monday. Each New Image holder got one Styles share for every five New Image shares owned.

Simultaneously, Styles began a rights offering that entitles its new stockholders to buy a million additional shares.

Each Styles holder will receive one right for each Styles share that they acquired in the New Image distribution, and each right entitles the holder to buy one additional Styles share for $6. The rights expire April 13.

New Image, based in Canoga Park, mainly makes computerized imaging equipment that dentists and others use to show customers the effect of their services. Styles on Video provides a similar system for beauticians and hairdressers.