Forum network provider CrowdGather has finalised an agreement to merge with Mega Fame Casino operator Plaor, with the combined entity looking to become an established player in the social casino sector.Under the terms of the deal, Plaor’s shareholders received 55,075,800 of common stock of CrowdGather, with the combined entity to have a total of 116,733,508 shares of issued and outstanding common stock.
Commenting on the merger, first announced earlier this month, CrowdGather chief executive and chairman Sanjay Sabnani said it would allow the business to capitalise on further growth opportunities in gaming and mobile applications as it moves away from its social forum business.
The company has begun to divest certain assets including its social forum business, looking to raise $1.9m in cash.
The agreement also sees Plaor founding board member Hazim Ansari appointed to CrowdGather’s board of directors.
Ansari is an intellectual property lawyer with extensive experience in helping emerging companies raising financing and establishing joint ventures. He has co-founded several companies including Novel IP, a business specialising in creating, managing and enforcing patent assets.
“[We] are excited to have someone of Hazim’s experience join our team,” Sabnani commented. “His expertise as an entrepreneur along with his extensive transactional experience makes him a perfect addition and complement to our team as we seek to grow our catalogue of games and apps.”
Ansari added that he was excited by CrowdGather’s vision for the social gaming sector.
“The company is building a business that takes advantage of the growth opportunities in social gaming while accounting for, and leveraging, the financial realities of the market”, he said. “I look forward to helping scale its gaming asset acquisition efforts.”
source : www.gamingintelligence.com
