Topcon To Acquire 10% Stake In Iridex

(RTTNews) - Iridex Corp. (IRIX), a provider of ophthalmic laser-based medical products for the treatment of glaucoma and retinal diseases, Tuesday said Topcon Corp. will invest in the company by acquiring 10% stake.

Topcon is a Japanese-based manufacturer and distributor with about $1.3 billion in annual revenues, including $430 million from its eye care business.

Topcon has purchased exclusive rights to distribute Iridex's retina and glaucoma products in certain global markets. It also acquired a common equity stake of approximately 10.4% in Iridex.

Topcon will purchase $10 million of Iridex common shares at a price of $6.18 per share. The cash proceeds are expected to be about $19.5 million before offering expenses.

Iridex plans to use the funds for strategic growth initiatives, particularly those designed to drive expanded market penetration of Iridex's unique non-incisional glaucoma therapy products.

IRIX closed Tuesday's trading at $6.89, up $0.65 or 10.42%, on the Nasdaq. The stock further gained $0.86 or 12.48% in the after-hours trade.