Business
CrowdGather Announces Corporate Restructuring to Focus on Cannabis and Publishing Assets
CrowdGather Announces Corporate Restructuring to Focus on Cannabis and Publishing Assets.
About this update from Perigee Hldgs Inc.
[{"type":"text","content":"\n \n \n CrowdGather Announces Corporate Restructuring to Focus on Cannabis and Publishing Assets\n \n \nCrowdGather Announces Corporate Restructuring to Focus on Cannabis and Publishing Assets\n\nSale of Plaor Gaming Subsidiary for $3.5M; 43% Reduction in Corporate Debt; and Fixed Price Conversion of Remaining Convertible Debt\n\n \n CALABASAS, CA--(Marketwired - Apr 20, 2016) - Specialty Cannabis and consumer publishing network, CrowdGather, Inc. (OTCQB: CRWG), today announced a corporate restructuring including the recent sale of CrowdGather's gaming subsidiary, Plaor, Inc, as well as an agreement with the Company's creditor, Iconic Holdings, wherein they will begin a negotiated conversion at a fixed price of $0.01 per share in order to allow the Company the opportunity to complete an equity financing at the same price over the coming period. As part of any proposed financing, CrowdGather's CEO may also convert up to $240,000 of money he lent the company last April at similar terms as long as the total of any such financing not exceed $1 million in aggregate.\n Total consideration offered for the purchase of Plaor by Native Games America, LLC was $3,500,000 in aggregate including cash, debt and liability assumption as well as deferred payments. The terms of the sale included an upfront cash payment of $200,000, the assumption of approximately $1,800,000 of CrowdGather debt, assumption of approximately $500,000 of Plaor liabilities, and deferred payments totaling nearly $1,000,000 beginning twelve months following the closing of the sale. Immediately prior to closing, CrowdGather held approximately $2,600,000 net intangible asset value and $1,800,000 of goodwill related to the purchase of Plaor. As a result we expect to record a loss of approximately $900,000 related to this transaction.\n With the sale of Plaor, the company has initially reduced its debt by approximately $2,300,000 or 43% of total liabilities. The Company's indebtedness will be further reduced through additional payments of just under $1 million which CrowdGather will receive in payments beginning after one year. In the event Iconic Holdings elects to convert the entire note into the company's common stock, the company stands to further reduce its liabilities by approximately $350,000, including notes payable, interest, and the derivative liability related to...