Harmony Holdings Raises $2.83 Million From Stock

Harmony Holdings Inc., a Burbank company that produces television commercials, said it has raised $2.83 million in an initial public stock offering.

The offering completes the spin-off of the company by Ventura Entertainment Group Ltd., a Beverly Hills television production concern that bought Harmony for $3 million in cash and stock in March, 1990. Ventura maintains a 57% stake in Harmony.

The offering consisted of 525,000 units, each made up of two shares of common stock and a warrant to buy another share at a later date.

Harmony said more than half of the proceeds will be used to pay off debts, and the balance will be used to acquire other production companies.

The company has been operating at a loss since January, 1990, and it reported losses in 1987 and 1988 as well. As of June 30, Harmony was technically insolvent, with current liabilities exceeding current assets by $1.2 million.

Harmony blamed its problems on increased competition, the recession and the reduced availability of its chief director, Robert Lieberman, who has been working as executive producer of the television series “Gabriel’s Fire.” Harmony said Lieberman’s commercials had accounted for about 40% of its revenues.