Mind Candy has avoided bankruptcy with a 1.2 million funding round

Mind Candy, the maker of "Moshi Monsters," has avoided potential bankruptcy with $1.5 million (1.2 million) in new funding from existing investors and by renegotiating the terms of a loan agreement, according to Bloomberg.Chief executive Ian Chambers said Accel Partners and LocalGlobe led the round, with other existing investors also taking part.Mind Candy also managed to negotiate a two-year extension on a 6.5 million loan from TriplePoint Capital.Earlier this year, Mind Candywarned it couldgo bankrupt if it couldn't renegotiate the loan financing.In a Marchinterview with Business Insider, Mind Candy founder Michael Acton Smith, who remains creatively involved with the business, said: "It's going, but it's not a huge cash generator. Mind Candy's not as big as it was, but it's in good shape."At Mind Candy's peak,revenue was almost 47 million in 2012. "Moshi Monsters" was once hugely popular, and let young players take care ofvirtual pets online. But then followed a tough couple of years as Mind Candyfailed toreplicate Moshi Monsters'success on mobile.Mind Candy's most recent financial filings show revenue almost halvedto 7.2 million in 2015.The companyis relying on a relaunch of "Moshi Monsters," targeted at a younger audience, and a new product called "Petlandia," Acton Smith said."Petlandia" lets people order personalised storybooks starring their pets. Chambers told Bloomberg that Mind Candy had sold 30,000books so far.Join the conversation about this storyNOW WATCH: Congress just voted to allow your internet provider to sell your online history and data 'here's how to protect your privacy
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