3DO, which announced last week that it may be delisted from the Nasdaq market, said today that it has arranged for a new two-year revolving credit line that it hopes will fund the firm through fiscal 2003.
The $15 million credit line, from GE Capital Commercial Services, is secured by accounts receivable, inventory and other unspecified assets. The credit line is contingent on raising $4.6 million in additional equity or debt financing by October 1, which CEO Trip Hawkins would personally provide if needed. The company's shares, which currently sit at 46 cents, are in violation of Nasdaq rules. 3DO was warned last week that it faces delisting unless the share price rises to over $1, and the firm is considering a reverse stock split to bring its share price above that minimum. On the brighter side, last week 3DO said that it will return to profitability in the quarter which ended June 30 and expects to beat street estimates for net revenue, net income, and earnings per share.
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