by Ice Cream Jonsey » Thu Jan 02, 2003 5:44 pm
From Frictionless Insight:
Trip Hawkins continues to be one of the main sources of 3DO's funding. He not only founded the company and previously extended a $3 million bridge loan facility to 3DO, which has been increased to an $8 million facility. $6.2 million of this has been drawn, and the rest can be drawn through June 30, 2003. On top of all that, Hawkins is providing assistance that is described as providing around $2 million of additional value. Hawkins has been given the option to purchase up to 2 million shares of 3DO stock at $2.52 per share (the stock is currently just above $2 per share, but Trip has the option to purchase at that price for four years).
Most interesting, perhaps, is that Trip Hawkins agreed to subordinate his interest in the company to potential lenders. That means that he gets repaid after any banks or other lenders that make loans to 3DO. Generally, a lender will only subordinate their interests in a company if they don't expect to be repaid without more loans. Trip is a founder of 3DO, but he has been given a lot (in the form of stock purchase options), so this is an indication of how dire things are at 3DO.
Hmm. Ah, well, a Sarge's Heroes sequel would solve things properly, wouldn't they?
From Frictionless Insight:
[quote]
Trip Hawkins continues to be one of the main sources of 3DO's funding. He not only founded the company and previously extended a $3 million bridge loan facility to 3DO, which has been increased to an $8 million facility. $6.2 million of this has been drawn, and the rest can be drawn through June 30, 2003. On top of all that, Hawkins is providing assistance that is described as providing around $2 million of additional value. Hawkins has been given the option to purchase up to 2 million shares of 3DO stock at $2.52 per share (the stock is currently just above $2 per share, but Trip has the option to purchase at that price for four years).
Most interesting, perhaps, is that Trip Hawkins agreed to subordinate his interest in the company to potential lenders. That means that he gets repaid after any banks or other lenders that make loans to 3DO. Generally, a lender will only subordinate their interests in a company if they don't expect to be repaid without more loans. Trip is a founder of 3DO, but he has been given a lot (in the form of stock purchase options), so this is an indication of how dire things are at 3DO.
[/quote]
Hmm. Ah, well, a Sarge's Heroes sequel would solve things properly, wouldn't they?