Glu Mobile raises $13.5 million in private placement

Mobile games publisher Glu Mobile announced a definitive agreement to sell $13.5 million worth of common stock and warrants to 10 existing stockholders and 10 new investors. Per terms of the agreement, Glu will sell an aggregate of 13,495,000 shares of common stock at a price of $1.00 per share as well as warrants to purchase an aggregate of 6,747,500 shares of common stock at an exercise price of $1.50 per share. The warrants can be exercised anytime within five years of the deal closing. Glu said that shareholders, who own about 50.2 percent of the firm, agreed to vote for the financing in a shareholder meeting, adding the funds will improve its capital structure and support its plans to develop new cross-platform games.

Glu Mobile reported first quarter 2010 revenues of $17.3 million, down 17 percent from $20.8 million in Q1 2009--the firm said net losses totaled $3.7 million, or 12 cents per share, compared to year-ago losses of $5.8 million, or 19 cents per share. Glu CFO Eric Ludwig said revenues from smartphones slipped to $1.53 million, down quarter-over-quarter but up 280 percent year-over-year--in-game ads and micro-transactions generated 9 percent of smartphone revenues. As of May 2010, Glu's iPhone game downloads exceed 30 million (22 million excluding updates), with its total monthly unique iPhone user base averaging more than 8 million.

For more on Glu Mobile's private placement:
- read this release

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