Holders Respond to Offer by Irvine Sensors

Irvine Sensors Corp. said Tuesday that holders of at least half of 1.2 million outstanding warrants have responded to a company offer to buy stock early and get new warrants as well. Under terms of the offer, which so far has raised $1.6 million for the company, holders of existing warrants due to expire Dec. 31 were permitted to buy Irvine Sensors’ common stock at $2.75 a share instead of the $3.70-per-share price originally set in the warrants. The Costa Mesa company’s stock has been trading at about $2 a share on the over-the-counter market. Irvine Sensors develops infrared and electronic devices for both military and commercial systems.

Warrant-holders who took the company up on the offer also received new warrants to buy stock at $3.70 a share. The new warrants will expire Sept. 5, 1987. John Stuart, Irvine Sensors’ chief financial officer, said the response to the offer to exercise warrants at a higher price than the shares would have cost if purchased on the stock market was an indication that the holders “expect the investment to pay off in the long run. Given the general climate of the market, as well as the specific climate associated with the high-tech stocks, we’re not displeased with the results,” he said. “In fact we’re very pleased.” Stuart said a final tally of the number of warrants exercised under the offer, which expired Oct. 5, will not be available until next week.