CrowdGather Receives $7.8 Million in Financing

Online community network CrowdGather will sell shares in the company to investors for $7.85 million. The funding round is the most significant to date for the Woodland Hills-based company. Under an agreement reached with institutional investors, CrowdGather will sell more than 7 million shares of common stock at $1.10 per share. The investors also bought warrants for an additional 5.3 million shares at $1.50 per share. CrowdGather believes that online forums are a tremendous repository of high value user generated content, said company Chairman and CEO Sanjay Sabnani. “We will endeavor to demonstrate this value by building a world class company that acquires, invests, and partners with forums,” Sabnani said. Rodman & Renshaw, LLC, a subsidiary of Rodman & Renshaw Capital Group, Inc. acted as the exclusive placement agent for the transaction. Mark R. Madler