Playlogic secures $10m funding boost

Playlogic expects to raise $10 million (£5m) in a private placement from its investors ‘within weeks’.

The independent Dutch publisher has released a breakdown of the funding, which it plans to use on large-scale expansion. Approximately $4.5 million (£2.25m) will come from private equity, while the other  $5.5million (£2.75m) will be in the form of loans.

“The newly attracted funds will be used to improve the working capital and equity of the company and to allow the company to execute its business plan and adhere to release schedules,” Playlogic revealed in a statement.

Meanwhile, the firm has announced its fiscal results for Q1 2007, ending March 31st – with a year-on-year increase in gross profit of 140 per cent, up from $1 million (£500,000) to $2.4 million (£1.2m)

The publisher is now profitable after a period of quarterly losses. Net profits for the quarter stood at $800,000 (£400,000) – a significant increase from the $1.2 million (£600,000) loss announced in the same period a year before.

Playlogic’s president, Willem M. Smit said: “The profit results from our clear and independent strategy, and continued focus on the development and release of quality games through our network of trusted distributors.

“Playlogic is reversing its initial losses and will continue to invest in its further growth by acquiring and publishing high quality content on all platforms to diversify our product portfolio.”

The news follows on from last Thursday’s announcement of full-year profits climbing 71 per cent, to $1.2m (£600,000) in 2006.

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Tags: financial , playlogic

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