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Red Mile Needs New Funding Within 30 Days

Red Mile Needs New Funding Within 30 Days

February 18, 2009 | By David Jenkins

February 18, 2009 | By David Jenkins
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More: Console/PC

Sin City and Heroes over Europe developer Red Mile Entertainment says it will "likely cease operations" if it can't find a new line of credit within 30 days.

The company's latest financial statement reveals it has lost $35.1 million since its inception in August 2004; Red Mile admits it has "predominantly incurred negative cash flows from operations."

The company has a $1 million line of credit with Tiger Paw Capital Corporation, from which it has already borrowed $500,000. However, the company is seeking $10 million in new funding to support its operations over the next 24 to 36 months.

Without new funding, Red Mile says it "will be unable to complete development of Heroes over Europe and Sin City: The Game (working title), or publish any other additional games if we are unable to receive co-publishing advances on both the foregoing titles or raise additional capital through either sale of securities or issuance of debt."

Red Mile’s Sin City adaptation has already seen challenges; the company replaced developer Transmission Games (previously IR Gurus) last August.

Claiming that Red Mile defaulted on a payment, Transmission Games abandoned combat flight simulator Heroes over Europe earlier this month. Subsequently, Atari pulled out of a co-publishing deal for the title, further compounding Red Mile’s financial problems.

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