SCIENCE/TECHNOLOGY

Financially troubled General Automation has put the finishing touches on its previously announced investment agreement with British-based Sanderson Electronics.

Under the agreement, Sanderson has provided a $1.75-million loan to General Automation, an Anaheim computer maker. Sanderson will also have the option of acquiring up to 51% of General Automation by purchasing newly issued common shares of the Anaheim firm.

General Automation, which lost $11 million in its 1988 fiscal year, had been searching for a financial rescuer for several months. After breaking off separate merger talks with Orange County-based Alpha Microsystems and Wespac Technologies, General Automation finally reached an accord with Sanderson on Jan. 9.

General Automation Vice Chairman Leonard N. Mackenzie said the loan from Sanderson “will enable us to take better advantage of the sales opportunities that we encounter worldwide.” He said the funds will be used for general working capital, particularly for boosting the firm’s production capacity to meet increasing sales.

General Automation’s new chairman, Paul Thompson, who is also chairman of Sanderson and who replaced Alexander Giles, said the Anaheim firm’s financial results for the current quarter ending March 31 “should reflect the improvements made possible by the new cash availability, including more cost-effective purchasing for systems manufacturing.”