Heska Corporation
Ticker:HSKA 1825 Sharp Point Drive
Exchange:NASDAQ-National Market Fort Collins, CO 80525
Industry:Manufacturing (SIC Code 2836) (970) 493-7272

Offering Information
Type of Shares:Common Shares Filing Date:4/24/97
U.S. Shares:5,000,000 Offer Date:6/30/97
Non-U.S. Shares:0 Filing Range:$8.50 - $10.50
Primary Shares:5,000,000 Offer Price:$8.50
Secondary Shares:0 Gross Spread:$0.60
Offering Amount: $47,500,000 Selling:$0.36
Expenses:$650,000 Reallowance:$0.10
Shares Out After: -

Primary Underwriting Group
ManagerTierPhone
CS First BostonLead Manager (212) 325-2000
Merrill Lynch & Co.Co-manager (212) 449-4600

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Pillsbury Madison & Sutro
Bank's Law Firm: Cooley Godward Castro Huddleson & Tatum
Auditor: Arthur Andersen
Registrar/Transfer Agent: American Securities Transfer, Inc

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
3 Month Ending Financials
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/96 3/31/97 3/31/96 3/31/97
Revenue:$9.96$3.06$0.16Assets:$38.60
Net Income:-$17.98-$7.88-$2.81Curr Assets:
EPS:-$1.71-$0.67Liabilities:$13.43
Prior EPS:-$6.92-$2.76Curr Liabilities:
Cash Flow/Oper:-$14.05Equity:$25.17
Cash Flow/Fin:Cash:
Cash Flow/Inv:

Business Description
The company discovers, develops, manufactures and markets companion animal health products, primarily for dogs, cats and horses. The company has six products currently on the market and over 25 products in research and development. The company also offers diagnostic laboratory services to veterinarians and operates a full scale USDA and FDA licensed facility which manufactures products for the company and other animal health companies. The company has corporate partnerships with Novartis AG, Bayer AG and Eisai Co., Ltd. And plans to expand its products and services through complementary acquisitions, licenses and collaborations. The company believes that it has the largest and most sophisticated scientific effort in the world devoted to applying biotechnology to the large and growing companion animal health market. The company is focused on providing products and services for the comprehensive management of a broad range of companion animal diseases, such as allergy, heartworm infection and flea-associated conditions. The company believes that several of its products under development may serve to expand the companion animal health market and advance the practice of veterinary medicine.

Use of Proceeds
The proceeds from the proposed offering will be used for research and development, expansion of sales and marketing activities, expansion and development of manufacturing operations, potential acquisitions, working capital and general corporate purposes.

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