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Officials from publisher and developer Midway Games have announced that buyers in its latest private offering have exercised their option to purchase an additional $10 mi...

David Jenkins, Blogger

September 15, 2005

1 Min Read

Officials from publisher and developer Midway Games have announced that buyers in its latest private offering have exercised their option to purchase an additional $10 million principal amount of notes, meaning that it has now raised $75 million in capital through this method. These notes will be convertible into Midway common stock at a conversion rate of 56.3253 shares per $1,000 principal amount of the notes. As a result of the offering, which is due to close within a week, the company’s share count will increase by 3.7 million. The move comes in the wake of continued and apparently improved re-organization at Midway, but disappointing financial results in which the company reported a loss of $29.9 million in the last quarter. The new offering should increase the amount of capital available to Midway, although there is still no indication when it might start to move into profit, as its latest results still predict a yearly loss of $60 million on revenues of $200 million. Michael Pachter, an analyst at Wedbush Morgan, commented, "While this is positive news in that the company's liquidity issue has greatly improved, we are maintaining our Hold rating until there is better visibility into either substantially higher revenue growth or a path to more consistent profitability."

About the Author(s)

David Jenkins

Blogger

David Jenkins ([email protected]) is a freelance writer and journalist working in the UK. As well as being a regular news contributor to Gamasutra.com, he also writes for newsstand magazines Cube, Games TM and Edge, in addition to working for companies including BBC Worldwide, Disney, Amazon and Telewest.

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