Water Pik Receives Favorable IRS Ruling

Water Pik Technologies Inc. said Thursday it has received a favorable Internal Revenue Service ruling that slices the amount of equity capital the company would be required to raise to $15 million from $50 million.

The IRS initially had required, among other things, that the Newport Beach company raise about $50 million in a public equity offering within a year after its spin-off last December from Allegheny Technologies Inc. in Pittsburgh.

Under the latest ruling, Water Pik can raise the capital either through a rights offering or through a private placement, the company said. The IRS also extended the time under which Water Pik has to complete the equity offering until April 30.

Water Pik intends to use the additional capital for acquisitions, to accelerate the introduction of new products and for further development of lower-cost manufacturing capabilities.

The company produces the Water Pik brand of shower massagers, automatic toothbrushes and pool heating systems.

The announcement came after the close of regular trading in U.S. stock markets. Water Pik shares edged up 6 cents to $6.06 on the New York Stock Exchange.