RADIANT SYSTEM PLANS OFFERING
POS specialist Radiant Systems is preparing a public offering of 4,683,848 shares with 3.5 million of those offered by the company. The vendor plans to use net proceeds to pay down the balance on the revolving part of its credit agreement, fund working capital requirements and for general corporate purchases, including possible acquisitions. The company's share price range from $9 per share to $19.32 per share in the 52-week period ended September 3 with the last sale at $19.19 per share that day. At $19.19 each, Radiant's shares would bring in about $63 million. There's no question why the stock is doing well.
The company turned in a great second quarter for 2010. By far the largest number of shares being offered by a shareholder are the 1 million being sold by chairman and chief technology officer Alon Goran. A year ago, the company also published a prospectus for a $150 million shelf offering that includes a combination of common stock, preferred stock and units that includes warrants to buy either kind so I'd say an acquisition is a very serious possibility with that kind of capital available. The shelf offering also included $15 million from selling security holders.
