Troubled ColorMax Settles With Shareholders

ColorMax Technologies Inc., a developer of soft contact lenses that treat colorblindness, said Friday that its directors are resigning and that a settlement with a dissident shareholder group comes too late to help it.

The Tustin company said in a press release that the settlement with a group led by John B. Tenney frees up a limited amount of company cash but that ColorMax still cannot raise needed funding.

The company has disconnected its telephone number. Neither Chief Executive Edward R. McLaughlin Jr. nor board members could be reached for comment.

ColorMax had six employees in February and fired an unknown number in April.

The stock, which 17 months ago hit $13 a share, has fallen 84% this year in over-the-counter trading and lost 9 cents Friday to close at 5 cents a share.