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UK Games Maker Rage to Sell New Shares for Survival

Time: 02:42 EST/07:42 GMT | News Source: Reuters | Posted By: Alex Harris

British video games maker Rage Software Plc moved to stave off insolvency on Monday, saying it planned to raise up to 5.6 million pounds ($8.2 million) by selling new shares. The Liverpool-based company, whose games include David Beckham Soccer and Crash, said that if the share offering did not succeed, Bank of Scotland might withdraw a 6.2 million pound credit line and the company might be forced to call in administrators. Rage shares fell 10.9 percent to 1-3/4p by 0939 GMT.

Rage, which has been forced to delay the release of new games because of funding problems and is suffering widening losses, said much of the proceeds from the share issue would be used to pay off creditors and the rest to meet its cash needs. "The group requires a minimum of 3.1 million pounds after expenses to be raised under the placing and open offer in order to have sufficient working capital for its present requirements," Rage said.

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