A shareholders group, including previous investor Trinad, Group have made an offer to Majesco to buy 2 million shares in the beleaguered publisher at a price of $1.50 a share. As part of the deal, the Trinad Group would wish to nominate three people for election to Majesco's board at the company's 2006 annual meeting.
The Trinad Group currently owns a 12.4 percent stake in Majesco and has already attempted to move its representatives onto Majesco's board with a proffered $5 million investment in September of last year
. The offer was not accepted, which Trinad warned would lead to them seeking to "become more actively involved in the company" - a threat which presumably is at the heart of today's announcement.
Majesco recently reported quarterly results
showing a loss of $2.6 million, increased from $400,000 a year previously. The company began to experience trouble in 2005 when it attempted to move into high budget console publishing with titles such as Advent Rising
and the critically acclaimed Psychonauts
. The games were not sales successes though, leading to the resignation of the CEO and a move back into "value and handheld games".
The Trinad Group is now suggesting that Jessie and Joey Sutton, the sons of Majesco CEO Morris Sutton immediately resign or be removed as officers of the company and has also indicated that it intends to file a lawsuit against the company and several current and former directors and officers, alleging that they breached their fiduciary duties while managing the business affairs.
It is also claimed they engaged in self-dealing transactions to further their personal interests, usurped corporate opportunities, mismanaged and wasted the company's assets and used poor judgment in appointing certain officers.
The shareholders group has indicated that its offer to buy Majesco shares will lapse on Wednesday, although no indication is made of what the group intends to do if this new offer is not accepted.