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CrowdGather, Inc. Announces $2.37 Million Financing of 8% Convertible Secured Notes

Posted by Dana in May 30th 2009

One of the leading networks of forum communities on the worldwide web, CrowdGather (OTCBB:CRWG), announced that it has closed a private offering of its 18-month Secured Convertible Debentures to a limited number of foreign institutional buyers. The Company will receive cash proceeds of $1,300,000, and approximately $1,075,000 in previously issued short-term promissory obligations were exchanged for the new Debentures.

“We are grateful to both our existing and new stockholders for their belief in CrowdGather and the opportunities we are pursuing,” said company Chairman and CEO, Sanjay Sabnani. “Raising this financing in a difficult environment is a tremendous advantage as we pursue growth through acquisitions. Forums and message-boards have been overlooked for too long despite the fact that they are a core constituency of the internet. We intend to address this disparity by teaming up with other forum owners in order to get forum communities the recognition and revenues they rightfully deserve.”