Funcom secures £1m for LEGO MMO

Funcom secures £1m for LEGO MMO
Craig Chapple

By Craig Chapple

April 28th 2014 at 11:50AM

Developer preparing to launch new title

Funcom has secured £960,000 in additional funds for the development and release of its upcoming MMO LEGO Minifigures Online.

The extra money is part of a deal in 2012 with US firm Yorkville Advisors, which offered the company access to additional funds if needed within 36 months. Following the agreement, Funcom will now issue 2.2 million shares to raise the cash.

“We are very pleased to have increased the company’s financial flexibility with funds that will be used in preparing for the launch of LEGO Minifigures Online,” said Funcom CEO Ole Schreiner.

“We have several times expressed a need for additional equity and have considered different alternatives to secure this. This facility has been available to us since 2012, but the timing has not been right before.”

In March Funcom reported that its Q4 revenues had fallen year-on-year by $3.5 million to $4.27m.

The firm blamed decreasing earnings on weaker-than-expected sales, increasing competition in the MMO space and deferred billings related to The Secret World, which has struggled to gain traction since its release.

Its latest title, LEGO Minifigures Online, is expected to be released later this year.