Organizers of the Baltimore Grand Prix have sought to raise an additional $1.5 million from investors to pay bills including salaries, according to a filing with the U.S. Securities and Exchange Commission.
The filing shows that Baltimore Racing Development LLC hopes to raise the money from existing investors. Already, $423,000 has been raised from more than 20 investors who wanted to "step up their interest or to protect their interest," said Jay Davidson, the company president and chief executive, in an interview.
Davidson said he didn't expect the Grand Prix to make money until the second or third year of racing in Baltimore. The IndyCar races are expected to return to a two-mile course around downtown Baltimore for four more years during the normally sleepy Labor Day weekend.
The filing, submitted Friday, said that at least $200,000 would be used to pay salaries for Davidson and six other officials. The filing made no mention of two separate lawsuits from the race founder and an early investor, who are seeking to recoup almost $900,000 they say they are owed.
Davidson said that money from sale of more than 110,000 tickets was still coming in and that the new equity sale was to ensure cash flow until then.
The filing also said the company had revenue of $5 million to $25 million.
The company initially sought to raise about $2.7 million from investors in minimum increments of $65,000 in 2010, according to SEC filings.
"We feel good about the future and what we've accomplished," Davidson said. "We wanted to create an event that got good buzz and that people would want to come back to next year."Copyright © 2014, The Baltimore Sun