SOUTH PLAINFIELD, NJ--(Marketwired - Apr 30, 2015) - Majesco Entertainment Company (
Under the terms of the Subscription Agreements, the Company will issue Units at a purchase price of $1.20 per Unit. Each Unit consists of one share of the Company's Common Stock or, if such issuance of Common Stock would result in the recipient investor exceeding certain threshold ownership restrictions, shares of the Company's 0% Series C Convertible Preferred Stock (the "Preferred C Shares"), and one three-year Warrant to purchase one share of the Company's common stock at an initial exercise price of $1.40.
In addition, the Company is completing an exchange of its currently outstanding warrants that were issued to the accredited investors that invested in the Company's December 17, 2014 private placement. Pursuant to warrant exchange agreements (the "Exchange Agreements"), the Company will retire 8,823,529 warrants exercisable at $0.68 per share in exchange for shares of the Company's Common Stock or shares of 0% Series B Preferred Convertible Stock (the "Preferred B Shares"), if such issuance would result in the recipient investor exceeding certain thresholds. An aggregate of 6,302,520 shares of Common Stock (which amount includes the shares of Common Stock issuable upon conversion of the Preferred B Shares) are issuable in connection with the Exchange Agreements.
About Majesco Entertainment Company
Majesco Entertainment Company is an innovative developer, marketer, publisher and distributor of interactive entertainment for consumers around the world. Building on more than 25 years of operating history, the company develops and publishes a wide range of video games on console, handheld and mobile platforms, as well as digital networks. Majesco is headquartered in South Plainfield, NJ and the company's shares are traded on the Nasdaq Stock Market under the symbol: COOL. More info can be found online at majescoent.com or on Twitter at twitter.com/majesco .
Safe Harbor
Some statements set forth in this release contain forward-looking statements that are subject to change. Examples of forward-looking statements include statements relating to industry prospects, our future economic performance including anticipated revenues and expenditures, results of operations or financial position, and other financial items, our business plans and objectives, including our intended product releases, and may include certain assumptions that underlie forward-looking statements. Statements including words such as "anticipate," "believe," "estimate" or "expect" and statements in the future tense are forward-looking statements. These statements are subject to business and economic risk and reflect management's current expectations, and involve subjects that are inherently uncertain and difficult to predict. Some of the risks and uncertainties which could cause our results to differ materially from our expectations include the following: consumer demand for our products, the availability of an adequate supply of current-generation and next-generation gaming hardware; our ability to predict consumer preferences among competing hardware platforms; consumer spending trends; the seasonal and cyclical nature of the interactive game segment; timely development and release of our products; competition in the interactive entertainment industry; developments in the law regarding protection of our products; our ability to secure licenses to valuable entertainment properties on favorable terms; our ability to manage expenses; our ability to attract and retain key personnel; adoption of new accounting regulations and standards; adverse changes in the securities markets; our ability to comply with continued listing requirements of the Nasdaq stock exchange; the availability of and costs associated with sources of liquidity; and other factors described in our filings with the SEC, including our Annual Report on Form 10-K for the year ended October 31, 2014. The Company does not undertake, and specifically disclaims any obligation, to release publicly the results of any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.
