More On ProElite
August 16, 2008
Just as a follow up on Kelsey’s EliteXC/ProElite post from this morning, reading over ProElite’s latest SEC filings, it looks like they are going back to the Showtime/CBS guys for a cash infusion per their 10-Q Report
The Company is actively negotiating to consummate a financing of approximately
$3.5 million in secured debt (with a funded amount of $3.0 million after an
original issue discount of $0.5 million) and believes a successful closing is
reasonably likely, but there is no assurance that it will be successful in doing
so at all or on a timely basis. Any such failure to obtain financing in the
immediate future would also have a material adverse effect on the Company’s
liquidity and capital resources and ability to continue as a going concern.
While CBS/Showtime is not mentioned explicitly in the filing, the deal stated is an exact replication of the deal they did with CBS in June. With the $3 million in hand, that should fund ProElite through their crucial October 4th card on CBS.
Just as an aside, many folks on the various MMA blogs are mentioning the sudden increase in the ProElite stock and trying to read the tea leaves as to what it could mean. The answer is: not much. The ProElite stock is very much a low trade stock, sometimes going days and weeks without a trade. The sudden jump in price was based on a minuscule sale of stock, around 5,300 shares. It wouldn’t even be fair to call this a drop in the bucket when compared to the 55 million shares of outstanding stock in ProElite. More than likely the reason the price was that high was because of a locked in option to sell the stock at that price on that date.
