Oasys defaults on loan

Shares of Oasys Mobile Inc. continued their descent after the company lost two board members and defaulted on an $8 million loan.
The Raleigh, N.C.-based outfit filed documents with the Securities and Exchange Commission disclosing the resignations of J. Winder Hughes and Stephen Finn, claiming the two directors “had no disagreements with management or Oasys Mobile on any matter relating to its operations, policies or practices.” The startup also said it has received a formal notice of the default and is negotiating with its creditors to resolve the matter.
Shares of Oasys lost 28%, or three cents, to trade at 8 cents a share mid-day Monday.
Oasys three months ago hired an investment banking firm to explore a possible sale. The company recently restructured, paring its workforce from 75 full-timers and contractors to 48 employees, and has scrapped the direct-to-consumer business that had become the center of its operations.
Instead, Oasys is focusing on mobile games and hopes to serve as a content aggregator for carriers. The firm also is marketing its direct-to-consumer technology to network operators as a white-label offering. Oasys last month reported a $1 million quarterly net loss from operations, down substantially from $2.1 million in losses during the same period in 2006.