Yesterday, SouthPeak Interactive announced that it had secured a new $10 million asset-based line of credit through February 28, 2012. The new line of credit was provided by Rosenthal & Rosenthal, Inc., a privately held financial services firm. The credit line can increase by an additional $3 million if SouthPeak’s stockholders see an increase in equity. This will replace the company’s previous $8 million line of credit with SunTrust Banks.
“Securing this additional credit provides us with greater financial flexibility and presents a clear message to our investors that we are confident of our business prospects and growth opportunities over the near- and long-term,” said SouthPeak Chairman Terry Phillips. “We continue to execute on our growth strategy to introduce new games that build our extensive portfolio. Our popular titles provide us with a significant opportunity to enhance our portfolio as well as enter new high-growth categories and expand our digital reach to further increase our brand equity.”
SouthPeak has been financially beleaguered for some time now. The publisher quietly lost one of its top franchises recently, however. Majesco picked up the rights to My Baby, which has sold nearly 2 million worldwide. It's not clear how SouthPeak let one of its top money making series get away, but we'd guess that the company had trouble paying developer Nobilis. Neither Nobilis nor SouthPeak were willing to comment when asked by IndustryGamers.
SouthPeak’s next title, Two Worlds II is expected to have a North American release September 14, 2010.
Additional reporting by James Brightman
