Calabasas seller of advertising space on cannabis forums CrowdGather Inc. said it is undergoing a corporate restructuring that includes an agreement with its creditors allowing it to obtain equity financing.

In an announcement, the company said it and its Brooklyn, N.Y. creditor, Iconic Holdings, have agreed to a negotiated conversion of the company’s debt to stock at a price of 1 cent a share. Under the agreement, CrowdGather Chief Executive Sanjay Sabnani can convert up to $240,000 of the money he loaned the company last year to restricted company stock on similar terms, as long as the debt conversion by both Sabnani and Iconic combined is less than $1 million. The agreement also allows the company to obtain equity financing at the same price for a limited time.

Sabnani announced the agreement as part of a corporate restructuring that began with the company’s sale in March of its gaming subsidiary, Boston-based online game studio Plaor Inc., for $3.5 million. CrowdGather now will return to its prior business model of selling advertising space on online forums but those forums will relate specifically to the cannabis sector, Sabnani said in a statement.

“This is a long-term play which will require for us to complete a successful equity financing round, but we believe that the opportunity is massive and achievable for CrowdGather,” the statement said.

However, the company expects losses in the near-term, Sabnani added.

“We are anticipating significant operating losses from our remaining business in the near term, but cost-cutting measures over the past few years have significantly reduced our net cash expense,” Sabnani said in the statement. “Our goal will be to push as hard as we can to achieve breakeven by the end of the year if we can cost effectively acquire capital.”

Shares closed unchanged at 2 cents on the over-the-counter market.