$CRWG FROM 8K CEO CONVERTING LOAN INTO RESTRICTED
Post# of 47038
Posted On: 07/26/2016 1:40:50 PM
$CRWG FROM 8K CEO CONVERTING LOAN INTO RESTRICTED STOCK:
Item 3.02 Unregistered Sales of Equity Securities
On July 19, 2016, Crowdgather, Inc. (the "Company"
issued 5,793,267 shares of restricted common stock to Sanjay Sabnani (CEO) related to a $56,000 loan on April 13, 2015. The shares were issued pursuant to a settlement of a Promissory Note. Mr. Sabnani converted the remaining $57,932.67 due to him into 5,793,267 shares of restricted common stock of CrowdGather, Inc. The conversion rate was $0.01 per share and this conversion extinguishes the Note.
The Registrant relied upon Section 4(a) of the Securities Act of 1933, as amended, for the offer and sale of its stock. It believed that Section 4(a) was available because the offer and sale was not a public offering of its securities and there was no general solicitation or general advertising involved in the offer or sale.
Item 3.02 Unregistered Sales of Equity Securities
On July 19, 2016, Crowdgather, Inc. (the "Company"
issued 5,793,267 shares of restricted common stock to Sanjay Sabnani (CEO) related to a $56,000 loan on April 13, 2015. The shares were issued pursuant to a settlement of a Promissory Note. Mr. Sabnani converted the remaining $57,932.67 due to him into 5,793,267 shares of restricted common stock of CrowdGather, Inc. The conversion rate was $0.01 per share and this conversion extinguishes the Note. The Registrant relied upon Section 4(a) of the Securities Act of 1933, as amended, for the offer and sale of its stock. It believed that Section 4(a) was available because the offer and sale was not a public offering of its securities and there was no general solicitation or general advertising involved in the offer or sale.
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