Spiral Toys Gets Institutional Backing

Entertainment technology company Spiral Toys Inc. on Wednesday announced it was receiving $1.18 million in financing from institutional investors. The Agoura Hills company will conduct two sales of convertible debentures for $625,000 and $550,000 respectively. The closure on the first sale was expected Wednesday. A convertible debenture is a type of loan issued by a company that can be converted into stock by the holder and, under certain circumstances, the issuer of the bond. Spiral Toys makes products that are linked by mobile-connected wireless technology, including CloudPets, which are plush toys that can be programmed to deliver messages and songs. They are sold at Walmart, Target and Toys R Us stores. Another product is Vinyl, digital stickers that can be programmed to display photos, videos and messages. Spiral Toys had revenue of $6 million in 2015, compared to $269,000 in the prior year. Shares on Wednesday closed down 1 cents or 2 percent, to 28 cents in over-the-counter trading.