Following the revelation that a few key tactical errors at at Cooking Mama
publisher Majesco created a $5.2 million third quarter loss
, the publisher's now drumming up funds -- to the tune of $9.63 million.
Majesco will raise the money through the issuance of over 6 millon new shares of common stock at $1.50 each in a new offering that closes September 22, it announced today.
The publisher's recent financial difficulties come down primarily to the fact that neither its Go Play line nor its Night at the Museum: Battle of the Smithsonian
met its expectations, and it spent too heavily on marketing initiatives behind Go Play that didn't bear fruit.
"We supported [Go Play's] launch with marketing to try to establish the brand," CEO Jesse Sutton recently told investors when the loss was announced.
"The trade-off here is that if you don’t have a license with a natural consumer draw, some level of marketing investment is necessary. In retrospect, unlike 2008, this summer was weak industry-wide, and... we were disappointed by the performance of both Go Play titles."
Majesco expects to earn $85 to $90 million in revenue this fiscal year, banking on the holiday release season and its upcoming Jillian Michaels Fitness Ultimatum
, a Wii fitness title starring the popular television personal trainer from The Biggest Loser program.