JoWood Stays Afloat
Software publisher JoWood has been through some rough times these past few months. JoWood shares dropped 80% in mid-November after an announcement that financial forecasts would be significantly lower than expected. One month later JoWood admitted to loses of 43 million US over the previous nine months, which resulted in 140 lay offs (half of their work force) one week before Christmas. Things were not looking good for the publisher of such games as Gothic 2, Arx Fatalis and other European titles.
This past Sunday RPGDot received an investor email from JoWood with some great news for North American gamers waiting for an english release of Gothic 2.
To sum it up, JoWood will survive. They were able to increase their capital by giving out new stocks. They managed to raise EUR 3 million (about the same in US$). The restructuring plan required a minimum of EUR 2.5 million. Because of the restructuring plan and the excellent performance of Gothic II in the German market, the banks agreed to continue their cooperation with JoWood.
The details of the capital increase, the restructuring plan and further developments will be presented in a press conference on Tuesday, January 14.
RPGdot has also received word today that the english version of Gothic 2 is on target for a Q1 2003 release as planned.