$CRWG NEWS ALERT
CrowdGather Provides Shareholder Update
GlobeNewswireJune 12, 2018
LOS ANGELES, CA, June 12, 2018 (GLOBE NEWSWIRE) -- Digital holdings and consumer publishing network, CrowdGather, Inc. (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.
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"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.
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