Atari is in a spot of bother, and has signalled it may need extra cash to continue.
Reporting its half year results to 30th September 2022, the Paris-based company admitted any delays in the development of its four activities (gaming, hardware, licensing and blockchain), or underperformance in its initiatives may cause it to make less money than expected, and in turn spark “a liquidity shortfall and additional financing requirements”.
There’s an “uncertain macro-environment” for video games and blockchain, the latter of which Atari has gone in heavily on, and so the company reckons actually implementing its new strategy “may require additional funding resources”.
Options outlined include new loans with its main shareholder Irata, a company controlled by current Atari chairman and chief executive officer Wade Rosen, and/or raising new financing from elsewhere, which may include a “public offering… to meet capital needs and refinance the Company’s debt”.