Acclaim Entertainment, Inc. Raises $13.0 Million Through Sale Of Common Stock and Prepayment of Notes
GLEN COVE, N.Y., June 9 /PRNewswire-FirstCall/ -- Acclaim Entertainment, Inc. (NASDAQ: AKLM - News), a global video entertainment software developer and publisher, today announced that it raised $13.0 million as a result of the sale of common stock and the prepayment of notes from each of the Company's Co-Chairmen. The funding was completed on June 5, 2003.
"We are pleased to announce the completion of this transaction, which strengthens our organization going forward," said Rod Cousens, Chief Executive Officer of Acclaim.
Private Placement of Common Stock for Gross Proceeds of $9.0 Million
The Company completed a private placement of common stock for gross proceeds of $9.0 million in connection with the sale of approximately 16.4 million shares of its common stock to a limited group of private investors. The funding was completed on June 5, 2003.
The common stock has not been registered under the Securities Act of 1933, as amended, or state securities laws, and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission ("SEC") under the Securities Act of 1933, or an applicable exception there from. The Company has agreed to register with the SEC all of the common stock sold in the offering within 60 days following the closing.
Prepayment of Notes of $4.0 Million
Additionally, Gregory Fischbach and James Scoroposki, Co-Chairmen for Acclaim, each prepaid $2.0 million ($4.0 million in total) of their outstanding notes due to the Company on August 31, 2003, for the purchase of common stock upon the exercise of their warrants....
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