CrowdGather, Inc. has closed on the initial offering of its new preferred stock, which will bring $1 million in funding to the company.
The Woodland Hills company, which manages advertising on Internet forums, has raised $300,000 by selling preferred stock at $1 a share. It anticipates raising another $300,000 by July. By October it plans for qualified investors to buy the remaining $400,000 in preferred stock.
The Company negotiated the financing with one investor and did not incur any placement charges.
“This financing comes with a directive for us to restructure our business for the maximum operational efficiency and leverage,” Sanjay Sabnani, chief executive, said in a statement. “The investment terms we have negotiated provide us with sufficient capital to streamline and refine our business as we consider the strategic opportunities before us.”
Shares of Crowd Gather closed unchanged at 8 cents a share on the over-the-counter market.