Radiance Medical Systems Inc. said Tuesday that its offering of 2.8 million shares of common stock was priced at $9.50 a share.
The Irvine company offered 1.5 million of its shares, raising nearly $13.4 million. The remaining 1.35 million shares were owned by former parent EndoSonics Corp., which is unloading its entire stake in Radiance.
Radiance will use the proceeds from its 1.5 million-share portion to fund clinical trials of the RDX System, a radioactive balloon catheter, as well as for sales, marketing and other corporate purposes. The company makes radioactive catheters designed to prevent reclogging of patients' arteries after angioplasty.
The company's stock, which traded as high as $15 a share shortly after the offering was announced Aug. 24, has since lost about 37% of its value. The shares closed Tuesday at $9.50, down 56 cents, in Nasdaq trading.
Chief Financial Officer Stephen Kroll attributed the stock's decline to several factors, including investor concerns that the secondary offering would dilute the value of the shares.
The underwriters handling the stock offering are Prudential Vector Health Care Group and Gruntal & Co.