But wait, there’s more

Veg-O-Matic maker eyes $30M IPO amid losses

Ronco Brands, the household gadget maker made famous by Ron Popeil in latenight infomercials, is now pitching an entirely different deal — and it has nothing to do with the Veg-OMatics, Ronco Pocket Fisherman or the Ronco 5 Minute Pasta Wizard.

The Austin, Texas, company is now cooking up an initial public offering of its own stock.

Ronco is looking to raise $30 million by selling 5 million shares of stock for $6 a share. The stock sales are being conducted on its Web site and the company will accept wire transfers and major credit cards. But wait, there’s more. There’s a minimum purchase of 20 shares — or $120 — in the IPO, the company said in a regulatory filing.

But before you think this is a can’t-miss, slam-dunk opportunity, be advised: While Popeil, who founded the company in 1964, may have sold more than $2 bil- lion of products over the time he owned the company, Ronco Brands today is a smallish, money-losing operation.

The company posted a net loss of $2.7 million last year on sales of $3.6 million, up 4.6 percent from 2015, when it lost $2.8 million. It has nearly $17 million in debt.

If that isn’t scary enough, the company’s auditors have expressed “substantial doubts” about Ronco’s ability to continue as a going concern.

Following the IPO, William Moore, chief executive of Ronco Brands, will, through super-voting shares, control nearly 97 percent of the voting power of the company.

Ronco Brands’ major asset will be its 100 percent ownership of Ronco Holdings, a company that as of June 30 has a working capital deficit of about $21 million, the company said in a regulatory filing.

But there is some upside in the offering.

For investments in excess of $1,000, the company will throw in a 20 percent discount on its Web site.

Spend more than $5,000 and get a Ronco Rotisserie, too.

Why stop there? Invest more than $10,000 and the company, run by its current owners since 2011, will throw in a Ronco Ready Grill to go with the rotisserie and the 20 percent discount.

The company is counting on the popularity of its Ready Grill to revitalize the brand.

The Ronco IPO is being offered through Washington’s Reg A+ — part of President Obama’s JOBS act in 2012 — that allows small businesses to raise up to $50 million. Companies taking that path have fewer disclosure requirements than with traditional IPOs.