REDWOOD CITY, Calif., Nov. 13, 2009 (GLOBE NEWSWIRE) -- Signature Devices, Inc. (Pink Sheets:SDVI) today is announcing a business update and progress for our 4th quarter of 2009.
To date Graffiti Entertainment has received initial purchase orders in excess of 40,000 units for Rogue Trooper, Reader Rabbit: Kindergarten and Free Running. Expected ship dates are: Rogue Trooper: November 24th, 2009, Reader Rabbit: December 8th, 2009 and Free Running: February 8th, 2010. Free Running has been postponed in the United States to February 8th as part of a presale promotion with GameStop which includes prominent display of the game trailer at video kiosks in stores. These ship dates can change by a few days as shipping times vary greatly during the Christmas season.
Reader Rabbit: Kindergarten is receiving placement in the Family Zone Tower with two front facing packages at all GameStops in the United States. The initial purchase order for GameStop stores in the U.S. was 12,000 units and a total of approximately 16,000 units were initially ordered. These figures do not include any reorders of the products. Initial purchase orders for Rogue Trooper and Free Running are approximately 12,000 units each.
We are also announcing an increase in the authorized common stock from 950,000,000 shares of common stock to 1,500,000,000 shares of common stock. The increase in authorized common stock is necessary for the acquisition of 7th Level Entertainment and to raise capital to build the products to ship to video game retailers. The increase in the authorized does not reflect the amount of shares needed for a capital raise. The additional capital needed is being used mostly for manufacturing the products to get them into retailers before the Christmas season, which is the strongest retail quarter of the year. The additional capital needed for manufacturing is approximately $150,000.00 and is being raised from private accredited investors who have no present intention to sell the shares. The Certificate of Amendment to Articles of Incorporation with the increase in authorized common was filed on November 13, 2009 in the state of Nevada.
"We have received more orders than expected from retailers on the three products," said Kenneth Hurley, Signature Devices, Inc. Chief Executive Officer. "This has put us in a small quandary. The amount of purchase orders has surpassed our credit lines to build the products and we had to take steps to raise capital and thereby increase our authorized common stock. I did not take this decision lightly, as I'm still the majority shareholder in the company. But I plan on raising as little capital as necessary to complete the orders and finance the cost of goods that exceed our credit limits."
The invoice totals for 40,000 units is approximately $920,000, of which the cost of goods is roughly $360,000. The invested capital should be recouped once invoices are paid after the products have been released.
About Signature Devices, Inc. and Graffiti Entertainment, Inc:
Based in Redwood City, Calif., Signature Devices, Inc. creates, develops and manufactures advanced information technology, including computer systems, software and electronics products. One of the Company's premier technologies includes a blend of hardware and software for image generation technology used in video games and simulations. Signature Devices also owns Graffiti Entertainment, Inc. (www.graffitientertainment.com), a publisher of interactive entertainment software for advanced entertainment consoles.
The information in this press release includes certain "forward-looking" statements within the meaning of the Safe Harbor provisions of Federal Securities Laws. Investors are cautioned that such statements are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including the future financial performance of the Company. Although the Company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date of this release, and the Company undertakes no obligation to update publicly any forward-looking statements to reflect new information, events, or circumstances after the date of this release except as required by law.