Wahlco Raises $2.7 Million

Wahlco Environmental Systems Inc. said Monday it raised $2.7 million in a rights offering as part of its financial restructuring plan.

The Santa Ana manufacturer of engineered products and air pollution control equipment said public stockholders exercised about 75% of the rights to raise $2 million, while the standby underwriter will provide the remaining $700,000.

As part of the restructuring, Wahlco is planning a 1-for-10 stock split that is effective Friday, and its largest shareholder, WES Acquisition Corp., will purchase shares of common stock in exchange for $11.7 million in debt owed by Wahlco.

Wahlco said its balance sheet will have a total debt of $6 million and stockholders’ equity of $4 million after the rights offering and debt conversion.