Video game headset maker Turtle Beach Corp. on Feb. 5 said it sold $6.7 million worth of shares this week, using the proceeds to shore up its working capital line of credit.
Turtle Beach announced the sale Feb. 1, with insiders expected to buy $3.15 million split between a public offering and a private placement. Chairman Ronald Doonink, CEO Juergen Stark, and SG VTB Holdings LLC, the company’s largest shareholder, bought a combined 1.45 million shares at $1 per share through the offering. A total of 5 million shares were sold in the offering.
SG also bought $1.7 million worth of unregistered common shares in the private placement.
Turtle Beach, which will receive about $6.2 million in net proceeds from the sale, said its line of credit deal with Bank of America required it to raise and apply at least $6 million in capital against its credit.