Private Stock Sale Brings Graphix Zone $6 Million

Graphix Zone Inc., a multimedia company known for producing CD-ROMs featuring music stars such as Bob Dylan, said Thursday that it has raised $6 million in a private stock offering, and has hired a new chief operating officer.

The company sold 1.5 million shares of restricted common stock to a small group of venture capitalists and other investors, many of whom already owned stock in the Graphix Zone, officials said.

Much of the money will be used to fund new interactive CD-ROMs and Internet-related projects, officials said, and $1.5 million has been loaned to StarPress, a San Francisco-based entertainment software company. Graphix Zone and StarPress recently agreed to merge.

Graphix Zone officials also said the company has hired Norm Block as chief operating officer, a newly created position. Block will oversee the company’s sales and finance departments, and be responsible for developing long-term strategies.

Block previously held positions with a number of computer companies, including Platinum Technology Inc., Qual/Soft and Ashton-Tate.