CrowdGather Inc., owner of a network of Internet discussion boards, is planning to sell assets as it seeks to stem ongoing losses and bolster its balance sheet as it seeks merger or acquisition targets.
Sanjay Sabnani, CrowdGather’s chairman and chief executive, said the company was reducing costs and will sell non-core assets.
“The capital raised from the asset sale will enable us to aggressively seek merger or acquisition candidates in the rapidly growing mobile app and social gaming technology sector,” Sabnani said in a statement accompanying its third quarter financial results. “Subsequent to the asset sale, we will be retaining more than 90 percent of our monthly revenue, our monthly page views and our monthly unique users.”
The Woodland Hills company reported a third-quarter net loss of $338,597 (less than 1 cent per share), compared with a loss of $682,193 from the same period a year earlier (less than 1 cent). Revenue for CrowdGather fell 12 percent to $446,201.