uWink files for additional $15M stock issue

LOS ANGELES uWink Inc., the single-unit restaurant operator and entertainment software developer led by Chuck E. Cheese and Atari founder Nolan Bushnell, has filed securities documents for a secondary offering of up to $15 million of its stock, currently traded on the OTC bulletin board.

uWink said it would use the net proceeds for new restaurant development, the marketing of its new franchise program and for general working capital needs.

The company indicated in its prospectus that it required at least $6 million to build and operate its planned two new corporate restaurants, and that even if this stock offering raises its maximum capital, uWink may require additional financing.

For the year ended Jan. 2, uWink posted revenue of $450,149 and a net loss of $10.4 million. A year earlier, the company recorded revenue of $682,000 and a loss of $3.2 million. The company said it would focus on developing its entertainment-and-restaurant concept and does not expect to generate a positive cash flow “for the foreseeable future.”

For the offering, Merriman Curhan Ford & Co. is lead placement agent and Sterne, Agee & Leach, Inc. is the co-placement agent. According to uWink’s prospectus, the company applied on June 25 to be listed on the American Stock Exchange. The application is pending.