CrowdGather Raises $1.3 Million in Funding

Online forum community network CrowdGather has completed financing of $1.3 million in convertible preferred shares with two foreign investors. The cash will be used by the Woodland Hills based company to fund further acquisitions of forum properties and will enable it to pursue its goal of being listed on a senior US stock exchange. “This financing will allow us to continue the strong traffic and revenue momentum we have been experiencing,” said Sanjay Sabnani, CrowdGather’s Chairman and CEO. CrowdGather sold 1.3 million shares of Series A Preferred Stock for $1.00 per share. The shares will convert prior to March 15, 2011 at $0.50 per share based upon the company’s achievement of certain milestones. In the event CrowdGather is unable to satisfy those requirements, then the company has the option to either redeem the Preferred Shares, or allow for conversion of the Preferred Shares at $0.33 per share. “We intend to continue our acquisitions of compelling forum properties as we look towards achieving critical mass with our media network,” Sabnani said. “Also, with this financing, we believe we will be strongly capitalized to pursue our long standing goal of having CrowdGather become listed on a senior US stock exchange.”