But it wasn’t enough to save Midnight City
Majesco Entertainment’s fallen on hard times. It had gotten so bad that sources familiar with the publisher’s financial situation said the company had become unresponsive and that its leadership had gone reclusive. And, that was all before it had shuttered its indie label Midnight City.
However, an influx of cash might have Majesco in a slightly better place, at least for now. The publisher just completed a new round of investments that sees it getting $1M up front and $5M in escrow to be delivered at a later date.
It’s unknown what conditions need to be met to acquire the additional $5M, but Majesco’s made several changes in the past few days that serve as indicators. On December 17, it started selling preferred stock at $.68 per share. It also recently appointed two new members to its board of directors.
Time will tell if this is enough to save the floundering publisher. It’s a means to survive a bit longer, but there’s no indication that Majesco has a viable plan to turn things around.
Majesco Entertainment Completes Fund Raising and Appoints Two New Directors [Majesco Entertainment via Joystiq]