Sunrise files shelf offering

FREMONT, Calif. — Sunrise Technologies (NASDAQ: SNRS) filed to sell from time to time 6 million shares of common stock. Company executives said Sunrise would use any proceeds received from the offering for working capital to fund expected operating losses, expenses and capital spending, according to the paperwork filed with the U.S. Securities and Exchange Commission.

Sunrise filed the shelf offering Friday, June 8, a day after the company announced it received a $2.68 million loan from International Mercantile Holding Group Inc. The term of the loan is 5 years, repayable on May 31, 2006. As collateral, company executives pledged 2 million shares of common stock, to be returned to the company once the loan is paid off.

According to paperwork filed with the SEC, Sunrise plans on using “up to $2 million of the proceeds of the loan to repay amounts owed to Silicon Valley Bank, the lender on our revolving line of credit. The balance of the proceeds will be used for fees associated with this financing and general corporate purposes. On March 31, 2001, we had drawn down $6.6 million on our revolving line of credit, and no further borrowings are available. This revolving credit line is repayable on June 29, 2001 and the lender has asked for a repayment of the borrowed amounts.”

To date, the company has accumulated a deficit of $123 million, and current operations continue to be cash-flow negative. Working capital on March 31 amounted to about $1.2 million, according to the company.