Looking to erase its $14.5 million debt burden, GoFish, the OTCBB-traded kids media company, has raised $22.5 million in a private placement led by Panorama Capital, Rustic Canyon Partners and Rembrandt Venture Partners. Under the terms of the deal, GoFish’s backers have an option to invest an additional $2.5 million over the next few weeks, on top of the $22.5 million. The investors will receive Series A Preferred Stock convertible at a per common share equivalent price of $0.20 per share and warrants to purchase common stock at that same price.

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Aside from retiring debt, the company, which has offices in San Francisco and New York, also plans to use the proceeds to hire additional staff in sales and marketing. Back in June, Matt Freeman, who was head of Omnicom Group interactive shop Tribal DDB, was tapped to take on the CEO role from Michael Downing, who had helped found GoFish (OTCBB: GOFH). The company agreed to forgive the $17,876.05 in debt Downing owed GoFish as part of an agreement drawn up when he stepped down in early June, according to an earlier report from the SF Business Times.