LANGHORNE, Pa., March 23, 2010 (GLOBE NEWSWIRE) -- eGames, Inc. (Pink Sheets:EGAM), a developer and publisher of games for the PC, game consoles and the Internet, today announced that it has completed a private placement on March 19, 2010 in which eGames received a total of $500,000 in gross cash proceeds in exchange for 1,000,000 shares of restricted eGames Common Stock and a three-year Warrant to purchase 1,000,000 shares of eGames Common Stock.
The Company is relying on the exemption from registration provided by Rule 506 of Regulation D under the Securities Act of 1933, as amended ("Regulation D"), for sales to "accredited investors" (as such term is defined in Rule 501 of Regulation D). The purchaser in this private placement has represented that it is an "accredited investor."
The Company intends to use the net cash proceeds from the private placement to fund product development of future game titles for social networks and for general working capital requirements.
About eGames, Inc.
eGames, Inc., headquartered in Langhorne, Pennsylvania, develops and publishes casual games for the PC, Nintendo DS and Wii, iPhone, and the Internet including The Dracula Files, Burger Island®, Burger Island 2: The Missing Ingredient, Satisfashion®, Purrfect Pet Shop®, and more. Additional information regarding eGames, Inc. can be found at http://www.egames.com/">http://www.egames.com.
The eGames Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7123
Forward-Looking Statement Safe Harbor
This press release contains certain forward-looking statements, including without limitation, statements regarding: our intention to use the net cash proceeds from the private placement to fund product development of future game titles for social networks and for general working capital requirements. The Company cautions readers that the risks and uncertainties that may affect the Company's future results and performance include, but are not limited to, delays in the development of future titles; inability to fund continued development of future titles; technical and other issues that may delay or halt development of future titles; the failure of new titles to sell well or achieve placement on social networks; our inability to enter into and maintain commercially successful publishing, licensing and distribution relationships; and an increase in competition; as well as the risks and uncertainties discussed under the heading "Factors Affecting Future Performance" in the Company's Annual Report for the fiscal year ended June 30, 2009 as posted on the Company's website and on www.pinksheets.com.