CrowdGather Inc (OTCMKTS:CRWG) has issued an update on corporate restructuring efforts in the past two years to its investors. Chief Executive Officer and Chairman of CrowdGather, Sanjay Sabnani the company has put in considerable efforts in restructuring after the difficult ride since the year 2015. CrowdGather is successful in reducing the liabilities of more than $3 million through the sale of some assets. It still needs further funding for growth.
Support from stakeholders
CrowdGather is pleased to announce that it has received continued support from directors, creditors, shareholders, officer, and employees. CEO himself has provided funds of $300,000 and converted $50,000 of the sum into equity. To keep the company going, two directors, including one current director and two former Chief Finance Officers, have contributed the funds.CEO has not taken a salary since late 2016. It reduced the overheads during the restructuring period.
CrowdGather is optimistic about prospects. The company built and exited Plaor, the social gaming platform, and the forum network during the decade. It is not the motive of the company to sell those businesses, but due to lack of funding. CrowdGather is in discussions with larger entities and investors for financing. Its main aim is to use the public company and leverage experience in developing high leverage and low business model that offers rich dividends to the shareholders going forward.
Assigns debt of $2.5 million
CrowdGather has assigned the debt of more than$2.5 million to the buyer of Plaor and reduced its liability. The partnership with Tapatalk has also progressed in the recent period. It is now a shareholder of Tapatalk. The latter operates the flagship hosted forums of CrowdGather. The company plans to transfer the balance properties to the platform of Tapatalk Group through a revenue sharing deal.
Tapatalk holds a dominant position in the mobile application for worldwide forums, and it is in line with the original mission of CrowdGather. Without maintaining an expensive hosting and engineering infrastructure, CrowdGather can take part in the forum industry because of its stake in Tapatalk. CrowdGather is an operator, advisor, investor, and owner of the digital assets in the cannabis and consumer sectors. The company conducts its businesses in the legal space.