Hercules Capital acquires JumpStart Games
Hercules Capital announced a portfolio company liquidity event with the acquisition of JumpStart Games by NetDragon Websoft Holdings Limited, a global leader in building online communities, especially in the areas of gaming and education. NetDragon is located in Fuzhou, Fujian, China. Hercules had committed $14.6M in venture debt financing to JumpStart initially in March 2014. As of March 31, 2017, the JumpStart senior secured debt investment was on non-accrual status, with a value of $3.1M. The acquisition was completed by NetDragon in Hong Kong on July 4. Hercules is scheduled to receive quarterly interest payments through June 30, 2018; and the potential to receive principal repayment of a portion of its outstanding obligation at maturity on June 30, 2018, subject to adjustments of JumpStart. In addition, the transaction also includes the potential for additional principal and interest recovery from JumpStart "performance-based earnouts" which are expected to be payable on June 30, 2019, subject to the achievement of certain performance milestones by JumpStart.