SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 18, 2003
eGames, Inc.
(Exact name of registrant as specified in its charter)
Pennsylvania 0-27102 23-2694937
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(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
2000 Cabot Blvd. West, Suite 110, Langhorne, PA 19047-1833
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (215) 750-6606
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(Former name or former address, if changed since last report)
Item 5. Other Events and Required FD Disclosure
On September 18, 2003, eGames, Inc. (the "Company") entered into a Business Loan
Agreement with Hudson United Bank ("HUB") to permit the Company to borrow up to
$500,000 from HUB. The term of this credit facility extends through December 1,
2004, as more fully described in the Press Release dated September 19, 2003,
Business Loan Agreement, Promissory Note and Commercial Security Agreement,
attached hereto as Exhibits 99.1, 99.2, 99.3 and 99.4 and incorporated herein by
reference.
Item 7(c). Exhibits
Exhibit
Number Description
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99.1 Press Release dated September 19, 2003
99.2 Business Loan Agreement
99.3 Promissory Note
99.4 Commercial Security Agreement
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
eGames, Inc.
By:/s/ Thomas W. Murphy
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Thomas W. Murphy, Vice President and
Chief Financial Officer
Dated: September 19, 2003
EXHIBIT 99.1
At eGames, Inc.
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Jerry Klein, President & CEO
(215) 750-6606 (Ext. 118)
Tom Murphy, Vice President & CFO
(215) 750-6606 (Ext. 113)
For Immediate Release
eGAMES ANNOUNCES NEW BANKING RELATIONSHIP
AND CREDIT FACILITY
Langhorne, PA - September 19, 2003 - eGames, Inc. (OTCBB: EGAM), a publisher of
Family Friendly(TM), value-priced consumer entertainment PC software games,
today announced it has established a new banking relationship with Hudson United
Bank ("HUB"), which will permit the Company to borrow up to $500,000, subject to
certain restrictions, for working capital and short-term borrowing requirements.
Amounts outstanding under this credit facility will be charged interest at
one-half of one percent above HUB's current prime rate and interest will be due
monthly. Access to these funds will be limited to the lesser of $500,000 or
seventy-five percent of qualified accounts receivable. This credit facility,
which matures on December 1, 2004, is secured by all of the Company's assets and
requires the Company, among other things, to maintain the following financial
covenants to be tested quarterly: a total liabilities to tangible net worth
ratio of 1.25 to 1.00 and a minimum tangible net worth requirement of $1.5
million.
About the Company:
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eGames, Inc., headquartered in Langhorne, PA, develops, publishes and markets a
diversified line of Family Friendly(TM), value-priced consumer entertainment PC
software games. The Company promotes the eGames(TM), Game Master Series(TM), and
Outerbound(TM) brands in order to generate customer loyalty, encourage repeat
purchases and differentiate eGames software products to retailers and consumers.
eGames - Where the "e" is for Everybody!(R) Additional information regarding
eGames, Inc. can be found on the Company's Web site at www.egames.com.