Deal includes warrants for 1 million shares; note is due in one year
By Devika Patel
Knoxville, Tenn., Dec. 5 ‑ CrowdGather, Inc. completed a $200,000 private placement of a secured promissory note with one investor on Dec. 2, according to an 8-K filed Friday with the Securities and Exchange Commission.
The note is due in one year and carries a 12% coupon.
The investor also received 1 million warrants, which are each exercisable at $0.11 for five years. The strike price is a 10% premium to the Dec. 1 closing share price of $0.10, the company said in the filing.
The company also said it negotiated an exchange agreement with the holders of its series B preferred stock and warrants for 10 million common shares. The investors agreed to swap their securities for $1.1 million of placement notes and 5.5 million placement warrants.
Based in Woodstock, Ga., GBS is a software and services company specializing in cloud automation and business software application modernization and transformation.
| Issuer: | CrowdGather, Inc.
|
| Issue: | Secured promissory note
|
| Amount: | $200,000
|
| Maturity: | One year
|
| Coupon: | 12%
|
| Warrants: | 1 million
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.11
|
| Settlement date: | Dec. 2
|
| Stock symbol: | OTCBB: CRWG
|
| Stock price: | $0.10 at close Dec. 1
|
| Market capitalization: | $10.51 million
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
