SAN FRANCISCO (The Red Herring) - 7th Level, a gaming software company that has been refocusing its business on tools for Net-based entertainment, has secured a private placement of $10 million, the company announced.
The firm on Friday also reported a loss of $2.5 million, or 18 cents per diluted share, for the first quarter of 1998.
The private financing from the securities firm Donaldson Lufkin Jenrette is structured with $5.5 million of convertible preferred stock and $4.5 million in convertible debt.
The company plans a shareholders' meeting in July to authorize the issuance of more common stock to cover the obligations taken on in Friday's deal.
7th Level, famed for its "Monty Python" gaming titles, has tried to move away from the business of electronic entertainment, instead selling picks and shovels to other companies hoping to mine the audience for Internet-based games.
Late in April, it appointed a new management team from inside and outside the company. Richard Merrick, senior vice president of technology, took over as chief executive officer, replacing interim president and CEO Bob Ezrin; Curt Marvis, senior vice president of business development, took the title of president; Tim Cahill, VP and general manager of Pulse Entertainment, was put in the new position of chief operating officer.
More recently, it struck a deal with RealNetworks to integrate its tools into the streaming media company's products and services, which followed a similar deal with data broadcaster WavePhore.
Shares of 7th Level (SEVL) closed up 15/32 at 6-27/32 in Monday trading.