Business
Rainmaker Systems, Inc. Announces Strategic Settlement, Capital Raise; Lays Financial Foundation for Growth of ViewCentral Business
Rainmaker Systems, Inc. Announces Strategic Settlement, Capital Raise; Lays Financial Foundation for Growth of ViewCentral Business.
About this update from Rainmaker Systems Inc
[{"type":"text","content":"\n \n Rainmaker Systems, Inc. (OTCQX:RMKR) (“the Company”), a leading provider \n of external, for-profit based learning management solutions, today \n announced that it had reached terms with a major creditor to settle a \n lawsuit filed in September 2014.\n \n \n The lawsuit, disclosed in an 8-K filing with the Securities and Exchange \n Commission on October 6, 2014, sought payment for amounts owing under a \n contract between the Company and creditor related to the Company’s \n former telesales and e-commerce business.\n \n \n In conjunction, the Company raised net proceeds of approximately \n $780,000 to fund a settlement payment to the creditor and provide \n working capital for the Company’s growing ViewCentral™ SaaS Learning \n Management System (LMS) business. As part of the settlement, investors \n in the Company’s secured debt agreed to waive all existing events of \n default that had initially arisen in September 2014.\n \n \n “Today’s settlement represents a watershed moment in the history of \n Rainmaker Systems,” commented Bryant Tolles, Chief Financial Officer of \n Rainmaker. “We are now exclusively focused on development and marketing \n of the ViewCentral platform and our ability to resolve financial issues \n stemming from past lines of business is a critical ingredient in our \n future growth. Not only have we addressed a significant liability and \n shored up our balance sheet, but we have done so with the resounding \n support of existing, and new, investors in the Company.”\n \n \n “We look forward to renewed engagement with the investor community in \n 2015 as part of laying the financial foundation for the growth of \n ViewCentral,” added Terry Lydon, President and Chief Executive Officer \n of Rainmaker.\n \n \n About Rainmaker Systems, Inc.\n \n \n Rainmaker Systems is a learning management solution provider to \n organizations of all sizes across the technology, financial services, \n biosciences, human resources, and consulting industries, among others. \n Rainmaker’s ViewCentral Learning Management System (LMS) allows \n organizations to monetize and facilitate the delivery of training and \n certification programs, enabling them to capture both incremental and \n recurring revenue from subscriptions-based offerings...