MicroProse ends financing

June 23, 1993|By Dow Jones News Service

MicroProse Inc. said yesterday that it closed its $10 million financing with Spectrum HoloByte Inc.

As part of the financing agreement, MicroProse also said that Spectrum has appointed Patrick S. Feely, Gilman G. Louie, Barry James Folsom and Frank Murnane to the MicroProse board, representing one-half of its members.

John W. Stealey Sr., MicroProse's co-founder and principal stockholder, has resigned as president and chief executive, and Spectrum intends to appoint a replacement acceptable to MicroProse.

In the interim, Ronald J. Bueche, now vice president and chief financial officer, will act as chief executive officer. Mr. Stealey will remain chairman until the merger is complete.

The Hunt Valley-based maker of computer games, which signed a nonbinding agreement with Spectrum last week, said yesterday that it gave Spectrum a $10 million subordinated note due in 1998.

The company said that under the financing, MicroProse and Spectrum would enter a merger agreement by July 15. Each outstanding Spectrum common share would then be exchanged for 0.6 of a share of MicroProse common stock.

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