Majesco Entertainment (NASDAQ:COOL), the company that develops and publishes video games that are cross-platform, family friendly, and inviting for the growing market of potential clients, has seen its stock climb over the last month, as investors show renewed interest in the entertainment company.
Diverse Product Platforms
Majesco develops games primarily for the casual game consumer, a market that has seen significant growth over the past several years. The company also develops and publishes video games and related products for consoles and other hardware platforms for interactive entertainment, among them the Nintendo Wii and WiiU, Sony’s last two generations of PlayStation and Microsoft’s recent Xbox variants.
In addition, Majesco Entertainment (NASDAQ:COOL) creates games for several digital platforms, including PlayStation Network and Xbox Live Arcade, as well as for mobile devices and online platforms that include Steam and Facebook. The company has also managed to create an extensive distribution network by establishing strong working relationships with both retailers and distributors over the last quarter of a century, making sure that its games are easily available throughout the U.S.
Short Interest Gains
After reaching a low of $0.72 on March 18, the share price for Majesco then rebounded to increase by 27.78 percent and was trading at $0.92 on April 18, just four weeks later. However, the share price is still significantly lower than it was in September last year, down 30.77 percent.
Majesco Entertainment (NASDAQ:COOL) shares also registered a short interest growth of 76.37 percent. Total short interest for the company came out to 41,800 shares in April, which is a significant increase from its previous level of 23,700 shares. The company’s short interest to float is 0.53 percent.
Institutional sentiment went down to 1.2 in the third quarter of 2015, dropping by 1.47 compared to the second quarter when it was 2.67. While the ratio was down due to three funds having sold all of their holdings in the company’s stock and two reducing their positions, the news was not all bad, as at the same time four new funds bought stakes in the company and two more increased their positions.
Additional Common Stock Sale
Majesco Entertainment Company (NASDAQ:COOL) announced on April 13 they have entered into a Securities Purchase Agreement with institutional investors to issue to sell 1,500,000 shares of its common stock for the offer price of $1.00 per share. This should provide it with close to $1.5 million in gross proceeds, subject to expenses and placement agent fees. The net proceeds will be used for working capital as well as general corporate purposes.
The company is also offering warrants for the additional purchase of 1,125,000 shares of the company’s common stock. Prior to this sale, the aggregate market value of the company’s outstanding common stock was close to $9,127,603 based on the approximately 9,921,308 shares held by non-affiliates at a value of $0.92 per share. Given the growing interest in the company, there is definitely potential for this to increase significantly over the coming months.