One of the networks of forum communities on the Internet, CrowdGather (OTC:CRWG), yesterday announced that it has closed a private placement transaction previously announced on February 28, 2011. Under the terms of the transaction CrowdGather has sold an aggregate of approximately 7,136,364 million shares of its common stock at $1.10 per share and warrants to purchase up to approximately 5,352,273 million additional shares of its common stock for total proceeds of $7.85 million. As I write, shares of CrowdGather are down slightly at $1.40 per share on moderate volume of just over 80,000 shares. The company has a market cap of $65 million and a 52-week range between $0.80 and $1.90 per share.The warrants to purchase additional shares will be exercisable at an exercise price of $1.50 per share and are exercisable for 5 years commencing six months and one day following their issue date. CrowdGather has agreed to file a registration statement with the Securities and Exchange Commission to permit the resale of the shares and warrant shares.
Rodman & Renshaw, LLC, a subsidiary of Rodman & Renshaw Capital Group, Inc. (NASDAQ:RODM) acted as the exclusive placement agent for the transaction.
CrowdGather provides an interactive and informational social network for members, a management and revenue-sharing resource for third-party forum owners, and a largely untapped advertising network for marketers worldwide.
For more information, please visit: www.crowdgather.com.
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