Langer Announces Stock Offering
BY JOHN MCCORMICK, DECEMBER 6, 2004
Last week, orthotic and prosthetic device company Langer, Inc. (Nasdaq: GAIT) announced that it was filing a registration statement with SEC to facilitate a 5,000,000 share offering to (i) pay down more than half of its $35 million in debt and (ii) for growth and working capital assuming proceeds of approximately $33 million.
As we noted in our 9.27.04 article, we viewed the Company to be substantially leveraged. Given Langer's doubling in market value this year and its current debt structure, this offering should be welcome news to investors who prefer to let earnings fall to the bottom line.
Langer has closed on its acquisition of Silipos Inc., which we viewed to be accretive due to its relatively high EBITDA compared to Langer. According to the registration statement, approximately $750,000 of the Company's Senior Subordinated Notes amount will be received by Langer's largest stockholder, Langer Partners, LLC, whose sole manager and voting member is the Company's Chairman. The rest of the money not used to pay down indebtedness will be held and cash and marketable securities.
Langer is also seeking to be approved for quotation on The Nasdaq National Market. The Company is currently traded on the Nasdaq Small Cap Market.
