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IDW Lost $1.8 Million in Q1 2017, Raising Another $10 Million

Published Mon, 26 Jun 2017 11:35:17 -0500

Last updated Thu, 29 Jun 2017 01:25:20 -0500

IDW has announced that it is planning to raise another $10 million in new shares sold to their shareholders at $29.50 per share. The intent is to use the proceeds from the sale to finance the Company's IDW Entertainment division, and for general working capital purposes.

The only people eligible to buy shares are existing shareholders who, together with affiliates, own more than 2,000 shares. And such holders may invest up to 7% of their ownership.

They state that Howard Jonas, Chairman of the Board has committed to purchase approximately $5.4 million in shares, and Raging Capital Master Fund, Ltd. has committed to purchase approximately $1.625 million while members of management have committed to purchase approximately $250,000 worth.

The company is suspending its quarterly dividend, as it has reported a $1.8 million loss. ICV2 reports that revenues declined 33% to $8.9 million from $13.4 million and last year in the same quarter, IDW made a $81,000 profit.

The decline is not just in one area, but in all three, IDW, which includes IDW Publishing and IDW Games; IDW Entertainment, which was created to develop and produce TV shows and movies; and CTM, which distributes tourist information, with all showing operating losses.

IDW is one of the few comic book companies to be listed in this fashion, and having to declare this kind of information publicly…