Shares of Gluu Mobile (GLUU) shot up in early morning trading Thursday before settling with a modest gain. The company released an 8K that shows a new deal with MGM. The announcement includes warrants from MGM to purchase up to 3.33 million shares of Gluu Mobile shares. This news could have a huge impact on shares in the near and long term.
Details of the warrants include:
· Rights to make games based on Robocop and James Bond
· Rights to purchase up to 3,333,333 common shares at $3 each
· Expiration on warrants on July 15, 2018
· First 333,333 vested and become exercisable on July 15
· 333,333 shares vest and become exercisable at release of a new mobile game based on MGM intellectual property (does not include first Robocop game)
· 1,000,000 shares vested and exercisable with release of new James Bond game and also 1,000,000 shares per sequel until limit reached
