Company sells units of one series A convertible preferred, one warrant
By Toni Weeks
San Luis Obispo, Calif., Dec. 18 – Majesco Entertainment Co. entered into separate subscription agreements on Dec. 17 to sell $6 million of units, according to an 8-K filed with the Securities and Exchange Commission.
The company sold units of one share of 0% series A convertible preferred stock and a warrant at $0.68 each.
Each five-year warrant is exercisable at $0.68 per share, a 15.25% premium to the closing share price of $0.59 on Dec. 16.
The preferreds are each convertible into common shares at an initial conversion price of $0.68, which is also a 15.25% premium to the Dec 16 closing share price.
Of the $6 million of proceeds, $1 million has been released to the company, and the $5 million balance will remain in escrow, to be subsequently released in one or more tranches if certain conditions are met.
Majesco is an Edison, N.J.-based provider of video games and digital entertainment products.
| Issuer: | Majesco Entertainment Co.
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| Issue: | Units of one share of 0% series A convertible preferred stock and a warrant
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| Amount: | $6 million
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| Price: | $0.68
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| Warrants: | One warrant per unit
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| Settlement date: | Dec. 17
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| Announcement date: | Dec. 18
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| Stock symbol: | Nasdaq: COOL
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| Stock price: | $0.59 at close Dec. 16
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| Market capitalization: | $5.77 million
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