Troubled development tools company Borland International Inc has secured $25m equity financing through the issuing of issued 495 Series B shares and warrants to purchase up to 198,000 shares of the company’s common stock. The issue was placed and arranged by New York City’s Promethean Investment Group LLC. The company may, certain conditions permitting, call for a second round of financing to raise a further $25m. Also, Borland is obliged to issue an additional 55 Series B shares and warrants for the purchase of an additional 22,000 shares of common stock, which will raise a further $2.5m. Borland is going to use the money to invest in, and acquire new, unspecified technologies. Borland reported fourth-quarter net losses of $42.5m on revenue that plummeted 47% to $37.2m back in April. The following month, the Scotts Valley, California company took the bold step of issuing a lawsuit against Microsoft alleging unfair competition because Redmond was poaching its best staff. Borland even alleged that Microsoft sent limos to Borland’s headquarters top pick the targeted employees up for a wooing lunch. After the satisfaction of certain holding periods, each of the newly issued Series B shares is convertible into shares based upon a conversion price equal to $6.94 or if lower, the lowest closing market price of the stock during the seven trading days prior to the conversion date. The warrants have an exercise price of $ 8.67 per share. Subject to certain conditions, Borland may ask for a second round of financing, starting September 30, for up to an additional $25m.