In a surprise move, Glu Mobile (NASDAQ: GLUU) has announced a rights issue of 8.6 million shares.
Priced at $3.50, this will raise the company around $28 million in new net capital.
In a generic statement, it said it would use the cash for working capital and general corporate purposes, including potential acquisitions in companies, technologies and products.
Building cash pile
The reason this is raising speculation, however, is that Glu is in acquisition mode, announcing it was buying Diner Dash developer PlayFirst in a $16.5 million deal earlier in May.
Also, it doesn’t need the money for operational reasons as it had $34.5 million in cash and equivalents at the end of its March 2014 quarter.
So, the expectation is that now with over $60 million available, Glu Mobile is close to announcing another acquisition.
Watch this space.