With its restructuring still ongoing, and losses expected for future quarters, the liquidity of Glu Mobile (NASDAQ:GLUU) had been questioned.
The answer has now come in the form of a sale of common stock and warrants to ten existing stockholders and ten new investors in a private placement for gross proceeds of approximately $13.5 million.
The move is subject to stockholder approval, but the company says it's already gained support from at least 50.2 percent.
Investors in this financing include certain members of Glu's board of directors and/or their affiliates, including Greenway Capital, GGV Capital and New Enterprise Associates.
"We are very pleased with the support of our stockholders in this private placement," stated Niccolo de Masi, Glu's CEO.
"The proceeds will significantly improve our capital structure as well as enable us to continue to execute on our new strategic plan of persistent, cross-platform mobile games."
Devil and the details
Under the terms of the agreement, Glu has agreed to sell an aggregate of 13,495,000 shares of common stock at a price of $1.00 per share and warrants to purchase an aggregate of 6,747,500 shares of common stock which will become exercisable at an exercise price of $1.50 per share commencing immediately after the closing of the financing and at any time or from time to time on or prior to the fifth anniversary of the closing.
Glu's shares fell 7.7 percent on news to $1.20, although they have fluctuated from less than $1 to over $1.50 in the past 12 months.
The company finished its Q1 2010 with a cash and cash equivalents balance of $10.5 million, and $3.1 million outstanding on its line of credit, down $1.6 million compared to its Q4 2009 total.
As well as ongoing losses, expected to be between $4.4 million to $4.7 million in Q2, it also owes $6.2 million to the shareholders of Chinese publisher MIG.
[source: Glu Mobile]
News
Contributing Editor
A Pocket Gamer co-founder, Jon is Contributing Editor at PG.biz which means he acts like a slightly confused uncle who's forgotten where he's left his glasses. As well as letters and cameras, he likes imaginary numbers and legumes.
Top Stories
News
Apr 27th, 2024
PocketGamer.biz Podcast Week in Views E09 - Supercell's Squad Busters goes global, Embracer Group splits, and Apple's Vision Pro flops
News
Apr 26th, 2024
Week in Views - Squads busted, Apple crushed, War zoned and Snoozin' with the Snorlax…
Feature
Apr 26th, 2024
Speaker Spotlight: Dubai Future Foundation's Faisal Kazim on leading Dubai's gaming charge
Events
Esports Future Summit | Middle East | Apr 27th |
Dubai GameExpo Summit 2024 | Middle East | May 1st |
The MENA Games Industry Awards 2024 | Middle East | May 2nd |
GameDev Atlantic 2024 | May 4th | |
Mobidictum Meetup Berlin May 2024 | Europe | May 7th |
Mobidictum Meetup Tallinn May 2024 | Europe | May 21st |
Israel Mobile Summit 2024 | Middle East | Jun 6th |
DevGAMM Vilnius 2024 | Europe | Jun 14th |
Popular Stories
News
Apr 23rd, 2024
Supercell’s Squad Busters soft launches today with over 100,000 Google Play downloads
News
Apr 23rd, 2024