Investors plug $6 million into Majesco
Majesco Entertainment completed an investment round that resulted in $6 million in funding, the Cooking Mama publisher announced today. $1 million of the funds were issued to the company with the rest stashed in escrow until certain, as-yet-unknown conditions are met by Majesco. The company also appointed two people to its boards of directors to replace two that stepped down, one of whom is Jesse Sutton, who will remain Majesco's CEO after resigning from the company's board.
SEC filings in November admitted that Majesco "suffered losses that raise substantial doubt about our ability to continue as a going concern." It reported a 27.2 percent drop year-over-year in net revenue in September, as well as net losses of $2.7 million. As a result, Majesco laid off several staff in October to reduce fixed costs. The company also noted last month that it is "currently not developing any significant new games for release in fiscal 2015," which ends on October 31, 2015.
[Image: Majesco]
