Trimedyne Sells Stock, Warrants to Investors

To finance the development of two new products, Trimedyne, the Santa Ana-based manufacturer of high-tech medical devices, sold 475,000 shares of common stock and 237,500 warrants in a private placement to a group of Trimedyne investors that included Trimedyne’s European joint venture partner, Nyegaard A.S. of Norway.

Trimedyne grossed $2.6 million from the sale, which was managed by Trimedyne to avoid outside fees or commissions. Michael R. Henson, Trimedyne’s president and chief executive officer, said the sale’s proceeds will be used to speed development of the company’s Laser Optiscope and Laserprobe devices, which are used for treating atherosclerosis of the heart. Atherosclerosis is a degenerative disease of the arteries that is a stage of arteriosclerosis.