Bam! plans new share offer as Q4 results decline

Publisher Bam! Entertainment has announced that it is preparing for a private offering of some 1.85 million shares of stock, following weak Q4 results which saw deepening losses and falling turnover.

The offer comes as the NASDAQ withdrew its threat of delisting from Bam's stock, which had been trading underneath the $1 mark for some time. Shares will be issued in this private offer at a price of $0.96, which is 80 per cent of the stock's 30 day moving average price.

For the quarter ended June 30, Bam's revenues were down 85 per cent to $2.1 million, while a net loss of some $9.2 million was recorded - a decline from a loss last year of $5.2 million in the same quarter. Although this was the end of Bam's full financial year, no full year figures have yet been released.

The decline in results is understandable when you consider that Bam! failed to release any new products during the quarter - a move which CEO Ray Musci claims was due to "continued efforts to narrow our product strategy, undertake cost cutting measures and stabilise our fixed expenses and cash outflow."