Glu Mobile Inc. (Nasdaq: GLUU), a leading global developer and publisher of freemium games for smartphone and tablet devices, reiterated that it has no current intention to raise additional capital in 2012 through an offering of any kind. The prospectus supplement that the company filed today with the Securities and Exchange Commission related solely to the sale of a warrant to purchase 50,000 shares of Glu’s common stock that was issued in Glu’s August 2010 private placement transaction by the original warrant holder. Glu fulfilled its contractual obligation under the private placement agreements to file a prospectus supplement to name the new holder of the transferred warrant. The filing of the prospectus supplement is wholly unrelated to Glu’s acquisition of the Deer Hunter® brand assets that it announced earlier today and is not an indication that Glu intends to raise any additional capital.
“As I stated during our last earnings conference call, we anticipate reaching profitability without needing to access the equity capital markets or incur any debt,” said Niccolo de Masi, Glu President and CEO. “As part of our announcements related to the Deer Hunter transaction earlier today we reiterated our expectations of reaching profitability with a net cash balance in the double digit millions. We have no need nor current intention to raise capital.”
Cautions Regarding Forward-Looking Statements
This news release contains forward-looking statements, including that we anticipate reaching profitability without needing to access the capital markets or incur any debt and with a net cash balance in the double digit millions. These forward-looking statements are subject to material risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Investors should consider important risk factors, which include: our cash usage in 2012 may be greater than we currently anticipate; the risk that consumer demand for smartphones, tablets and next-generation platforms does not grow as significantly as we anticipate or that we will be unable to capitalize on any such growth; the risk that we do not realize a sufficient return on our investment with respect to our efforts to develop freemium games for smartphones, tablets and next-generation platforms, the risk that our development expenses for games for smartphones are greater than we anticipate; the risk that our recently and newly launched games are less popular than anticipated; the risk that our newly released games will be of a quality less than desired by reviewers and consumers; the risk that the mobile games market, particularly with respect to freemium gaming, is smaller than anticipated; and other risks detailed under the caption "Risk Factors" in our Form 10-K filed with the Securities and Exchange Commission on March 14, 2012 and our other SEC filings. You can locate these reports through our website at http://www.glu.com/investors. We are under no obligation, and expressly disclaim any obligation, to update or alter our forward-looking statements whether as a result of new information, future events or otherwise.
Glu Mobile (NASDAQ:GLUU) is a leading global developer and publisher of freemium games for smartphone and tablet devices. Glu’s unique technology platform enables its titles to be accessible to a broad audience of consumers all over the world – supporting iOS, Android, Windows Phone, Google Chrome and beyond. Glu is focused on bringing the best in freemium, cross-platform mobile gaming experiences to the mass market. Founded in 2001, Glu is headquartered in San Francisco and has major offices in Kirkland, Washington, Brazil, Canada, China, Russia and the UK. Glu is focused on creating compelling original IP and also partners with leading entertainment brands including Activision, Caesars and Fox. Consumers can find high-quality entertainment created exclusively for their mobile devices wherever they see the ‘g’ character logo or at www.glu.com. For live updates, please follow Glu via Twitter at www.twitter.com/glumobile or become a Glu fan at www.facebook.com/glumobile.
DEER HUNTER, GLU, GLU MOBILE and the ‘g’ character logo are trademarks of Glu Mobile Inc.