The Company expects to receive gross proceeds of approximately $46 million from the offering. The Company will not receive any proceeds from the sale of shares by the selling stockholders. Selling stockholders participating in the offering were required to exercise certain warrants received in the Company's February 2004 private placement. The Company expects to receive additional proceeds of approximately $11 million through the exercise of these warrants.
RBC Capital Markets, JMP Securities, Wedbush Morgan Securities and Harris Nesbitt are acting as underwriters in the offering. The underwriters may also purchase up to an additional 540,000 shares from the Company and 360,000 shares from selling stockholders within 30 days from the date of the prospectus to cover over-allotments, if any.
As a result of the offering, the Company will have 22,104,141 shares of common stock outstanding, excluding the exercise of the over-allotment, if any.
In addition, the Company has been approved for listing on the Nasdaq National Market and will commence trading today under the ticker symbol "MJES."
Carl Yankowski, Chairman and CEO commented, "This successful offering gives us the opportunity to further develop and prove Majesco's growth strategies and management team. These funds will help finance working capital, accelerate product development, fuel more marketing, and acquire new content, all of which will facilitate our diverse planned growth and leverage our unique three-pronged digital entertainment business model."
A copy of the offering prospectus may be obtained by contacting the Prospectus Departments of RBC Capital Markets Corporation (60 South 6th Street, Minneapolis, MN 55402, (612) 371-2818); JMP Securities LLC (600 Montgomery Street, Suite 1100, San Francisco, CA 94111, (415) 835-8900); Harris Nesbitt Corp. (3 Times Square, New York, NY 10036, (212) 885-4032), or Wedbush Morgan Securities Inc. (1000 Wilshire Boulevard, Los Angeles, CA 90017, (213) 688-4545).
This communication shall not constitute an offer to sell or the solicitation of an offer to buy such common stock nor shall there be any sale of such common stock in any state in which such offer, solicitation or sale would be unlawful under the securities laws of any such state.