ProElite Gets Cash Infusion From Showtime
June 25, 2008
The latest SEC filings by ProElite indicate that the company recently received a cash infusion from CBS/Showtime Networks. Showtime funded a note payable by ProElite and ProElite in return issued warrants to Showtime. The note is payable for $3.5 million but ProElite looks to have received proceeds of $3 million.
ProElite looks to be in a cash crunch with cashflow needed to fund the run up to the July 26th card on CBS. For it’s troubles, CBS/Showtime were issued warrants to purchase 100,000 shares of common stock. The warrant has an exercise price of $0.01 per share. With Showtime taking an increasing role in the company, the issuance of the warrants is significant because it is another possible increase in CBS/Showtimes’s stake and a possible increase in their power over ProElite. This increased stake also may be fueling some of the talk surrounding Gary Shaw’s rumored departure from the company.
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