Buying time: Glu Mobile raises $14 million to break into the black

After another set of difficult financials in early August, I pondered hard about the future of Glu Mobile (NASDAQ:GLUU).

Given its cash position and loss-making performance, I reckoned the company had six to nine months to turn itself around.

Now, however, it's time to recalculate.

The reason is that last week it announced it had raised around $14 million in a public stock offering worth $15.2 million; something we didn't notice at the time.

That's important as during the first half of FY2013, the company lost $8.4 million.

Before raising this new cash, it reckoned it would end 2013 with around $9 million in cash, so now it has at least an additional six month cushion to turn the corner.

Yet, this sort of move - even completed successfully - doesn't come without strings attached.

Ignoring the dilution of existing shareholders, the last time the company raised cash - net $13.8 million in early 2011 - it said this would be enough to take it through to profitability.

Still, there is some immediate good news for new investors. Its latest game Deer Hunter 2014 is straight into the US iPhone top grossing top 10 apps chart.

[source: Glu Mobile]