LOS ANGELES, CA, June 12, 2018 (GLOBE NEWSWIRE) -- Digital holdings and consumer publishing network, CrowdGather, Inc. (OTCQB:CRWG), today provided a shareholder update regarding its corporate restructuring efforts over the past two years.
“We have had a difficult journey since 2015, but I am pleased to say that we have achieved great strides in restructuring our company to give it a chance to survive and thrive,” said CrowdGather Chairman and CEO, Sanjay Sabnani. “We have reduced our total liabilities by over $3 million with the help of some asset sales and have also been able to reach standstill agreements with all of our note holders, many of whom have already converted into equity. We are still short of funding, but have investors who have been bridging the company towards the ultimate goal of getting us back in a position of growth.”
Sabnani continued, “We have been fortunate to receive support from all of our stakeholders -- employees, officers, directors, shareholders, and creditors. I have personally lent CrowdGather over $300,000 and converted $50,000 of that into equity. Two of our former CFO’s as well as two directors -- one past and one current -- have also contributed funds to keep the company going. In addition to supporting CrowdGather financially, I have also not taken any wages from the company since late 2016. As a result, CrowdGather has had very little overhead during this period of restructuring.
"Going forward, we are cautiously optimistic about our prospects. During the decade that we have been public, we have built and exited two growth businesses -- our forum network as well as our social gaming platform, Plaor. It was not our desire to sell these businesses, but the lack of good, trustworthy financing options for companies of our size has necessitated some difficult decisions. The good news is that we are in discussions with investors and much larger entities that are interested in joining forces with us. Our goal is to leverage our transactional and public company experience towards a low cost high leverage model that is focused exclusively on providing value to our shareholders. More clarity will be provided as discussions progress into imminent transactions.
“The sale of our Plaor subsidiary allowed us to assign over $2.5 million in debt to the buyer, significantly reducing our indebtedness at that time,” Sabnani explained. “More recently, we have progressed our partnership with Tapatalk, the top startup in the forum space. What started out as a partnership has now resulted in us becoming a shareholder of Tapatalk’s while they run and operate our flagship hosted forums -- Yuku.com, Freeforums.org, and Lefora.com. Going forward, we intend to move our remaining properties to the Tapatalk Groups platform in exchange for a revenue share agreement. Tapatalk’s position as the dominant mobile application for forums worldwide is in line with CrowdGather’s original mission. Our stake in the company allows us to participate in the forum industry without maintaining an expensive engineering and hosting infrastructure.”
About CrowdGather, Inc.
CrowdGather, Inc. is an investor, advisor, acquirer, operator and owner of digital assets in the consumer and cannabis sectors. As of the present, CrowdGather does not participate in any businesses that are in violation of federal law.
This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and the Company’s growth and business strategy. Words such as “expects,” “will,” “intends,” “plans,” “believes,” “anticipates,” “hopes,” “estimates,” and variations on such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, changes in the Company’s business; general economic, industry and market sector conditions; the ability to generate increased revenues from the Company’s forums; the ability to obtain additional financing; the ability to manage the Company's growth; the ability to develop and market new technologies to respond to rapid technological changes; competitive factors in the market(s) in which the Company operates; and other events, factors and risks disclosed from time to time in the Company’s filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.
For additional information, please contact: Investor Contact: Sanjay Sabnani Phone: 818-435-2472 x 101 Email: sanjay@crowdgather.com
