Back in November, we heard reports of Psychonauts publisher Majesco Entertainment and its indie label Midnight City undergoing a financial turmoil. It now looks like the company might be able to breathe a sigh of relief as investors plugged $6 million into Majesco this week.
Despite undergoing a round of layoffs and facing the threat of delisting from NASDAQ, the aforementioned sum of money was raised by “certain accredited investors, approximately $1,000,000 of which has been released to the Company.” While $1 million was made available with immediate effect, $5 million are to remain in escrow until the company meets certain undisclosed conditions.
CEO Jesse Sutton will hold on to his position although he has resigned from the Board of Directors alongside Chairman Allan I. Grafman. In order to fulfill the vacancies, Majesco’s new Chairman, Trent D. Davis, and Mohit Bhansali were appointed to the Board of Directors. Sutton said:
This financing and the changes to our board position us well as we continue to pursue strategic alternatives to maximize shareholder value.
It remains to be seen whether this will be sufficient to save Majesco or not.