Glu Mobile To Raise Cash To Get Out Of Sticky Situation

Glu Mobile (NSDQ: GLUU) has been closely watching its cash, knowing it may have to raise more funding with just $10.5 million remaining at the end of the first quarter.

Besides paying for day-to-day operations, it had bank covenants to worry about and even final bonus payments on a years’-old acquisition. But yesterday, the San Mateo, Calif.-based mobile game company took a step toward restocking its coffers, and was able to secure $13.5 million from investors — including some of its own board members, according to a document filed with the SEC.

The company has agreed to sell 13.5 million shares of stock at $1 per share and warrants to buy 6.7 million shares of stock that have an exercise price of $1.50 per share. The warrants can be exercised within the first five years of the deal’s closing. Shareholders will be able to vote on the funding during a special meeting to be held no later than Sept. 30, but it sounds like a done deal — already shareholders who own more than 50.2 percent of the company’s shares have agreed to vote in favor of the offering.

The investors in the funding include members of Glu