A few weeks after its last fundraise in April, OverActive Media, the parent company of Movistar KOI, announced on June 1 that it had finalized a new injection of US$500,000. That brings the total raised over these past weeks to roughly US$2.45M.
In practical terms, the company is borrowing money rather than selling shares, and this new tranche comes from a single lender, which would most likely be Tracker Partners LP — a fund specializing in media, sports, and entertainment, whose profile appears in the press release, even though its name is never explicitly stated.
The loan runs for 23 months and carries interest of 12% per year, with all interest paid in a single payment at maturity. As collateral, OverActive pledges its accounts receivable along with those of its two wholly owned subsidiaries: OAM LEC S.L.U. (the entity behind KOI) and Team Randomk Esports S.L. (Movistar Riders). Put simply, if the company fails to repay, the lender can recover its money from those assets.
As with the previous round, the funds will go toward the company's general working capital needs, with no specific investment announced. The lender also receives 2.5 million share purchase warrants, allowing it to buy OverActive shares down the line at a price of C$0.20 — a standard sweetener for this type of deal, giving it upside potential if the stock rises.
