Business
Democrasoft to Transfer Assets to Private Company
Democrasoft to Transfer Assets to Private Company.
About this update from Democrasoft Hldgs Inc
[{"type":"text","content":"FOR IMMEDIATE RELEASE: 3-11-2013\n\n For Further Information: Mark Kithcart: [email protected] or\ncall 888-993-8683 x706\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nDemocrasoft to Transfer Assets to Private Company\n\n \n\nNew Entity Will Be Wholly-Owned\nSubsidiary of Democrasoft Holdings, Inc.\n\n \n\nSanta Rosa, March 11, 2013— Democrasoft,\nInc. (OTC: DEMO) announced today that effective March 8, 2013, all of its\nassets and liabilities were transferred into one of its two wholly-owned\nsubsidiaries, Collaborize, Inc. This new private company expects to issue new\nsecurities, as appropriate, to interested investors. Reflecting its status as a holding company,\nDemocrasoft will be renamed Democrasoft Holdings, Inc., and the subsidiary (the\noperating company) will do business as Democrasoft.\n\n \n\nThe public company\n(currently Democrasoft, Inc.) will initially be the sole shareholder of the\noperating company. It will engage in no other activities for the foreseeable\nfuture, except as it may benefit from the operations of its private subsidiary.\nThe financial results of the two companies will be consolidated, as required by\nthe accounting rules, and both companies will cease publicly distributing\nfinancial or other information.\n\n \n\nAccording to\nDemocrasoft Chairman & CEO Richard Lang, “We are responding to a\nlong-standing fund-raising obstacle, as well as the advice of potential and\nexisting investors who are reluctant to invest in a company whose stock is\nthinly traded on the public “pink sheets,” where our market valuation and\nliquidity have typically been disconnected from the true value that we believe\nis inherent in our company and its current and potential opportunities.” \n\n \n\n“By operating in the\nform of a private company, we can offer new investors a greatly simplified investment\nvehicle with only one existing shareholder, our holding company. Meanwhile, we\nplan to preserve the eventual liquidity that may be available to our\nshareholders through our public vehicle, upon the success of our private\nsubsidiary” said Lang.\n\n \n\n-30-\n\n \n\nFor more information or to schedule an interview with Democrasoft senior\nmanagement, please contact Mark Kithcart at: [email protected] or call 888-...