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Gizmondo Settles Jordan Lawsuit, Raises New Capital
by Simon Carless [Console/PC, Mobile Phone, Mobile Console]
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September 7, 2005
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Jacksonville, Florida-based Tiger Telematics Inc, whose subsidiary, handheld game console maker Gizmondo Europe, is its main going concern, has released its latest financial documents. The SEC-filed documents reveal both lawsuit resolution and creation for the somewhat controversial company, as well as continued extra financing to fund its Gizmondo handheld, which is due for American launch later this year.
Firstly, the previously reported lawsuit brought by Jordan Grand Prix Limited, filed in London in early 2004, and based on the fact that Tiger violated a sponsorship agreement to feature advertising for the pre-Gizmondo 'Gametrac' device on the side of a Formula 1 car, has been settled in an out of court mediation by the payment of $1,500,000 in cash and the issuance of 30,000 shares of the Company's restricted common stock.
However, Gizmondo's alternate enterprise-oriented life as 'Bizmondo', announced in late 2004 when the company revealed it was acquiring UK-based software developer Integra SP to tie the handheld into business applications and email, seems to be over. The company filed an action against Integra SP Holdings Limited in August 2005, claiming that the acquisition agreement 'required the satisfaction of numerous conditions in order to close', and these have not been met, according to Tiger. Therefore, Tiger Telematics is filing suit, demanding an initial loan of UKP800,000 ($1.47 million) back.
Finally, the company revealed that it has completed a sale of 1,815,989 shares of Tiger Telematics stock for an aggregate purchase price of approximately $17.523 million, which will be used "buy critical game content for its Gizmondo multi-entertainment device and for future increased launch and marketing expenses." This is the latest in a string of large share purchases by unspecified investors, and the firm now has a total of 60.5 million shares outstanding, compared to 46.3 million in February 2005.
The Gizmondo handheld itself is scheduled for a North American release in the "active fourth quarter sales period commencing in October." The handheld uses the Windows CE.NET operating system and Windows Media Player. It is powered by a Samsung ARM9 400MHz processor, 64MB onboard memory and a 128-bit NVIDIA GoForce 3D 4500 graphics accelerator. As well as gaming, the console also advertises music and video playback, SMS, picture messaging, e-mail and has an in-built camera and global positioning (GPS) functionality.
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