CrowdGather Inc (OTC:CRWG) has been losing value for quite while now. In the past, the company relied heavily on promotions, but they don’t seem to work anymore.
Yesterday, CRWG closed at $0.82 for a 1.2% loss on 147 thousand shares. The price has been moving very close to the $0.80 mark and even had several days of closing below it.
In late May CRWG announced yet another acquisition. The company acquired PbNation.com and its assets for hefty $3.2 million – $1.4 million in cash, about 1.150 restricted shares, and an additional cash and stock compensation.
The PR was backed by yet another promotional campaign, but the effort backfired, and triggered the drop that had CRWG below $0.80 for a while.
Earlier this year, CRWG secured a $7.85 million financing, which was supposed to be enough to get them through for at least 12 months without hindering the expansion and the business plans, and hopefully without further dilution for a while.[BANNER]
The end of CRWG’s fiscal year was on April 30. Their annual report is still not out. For the time being, the latest financial data available is for the period ending Jan. 30.
Back then the company seemed to be on top of its current liabilities. Furthermore, the revenues were growing; so were the operational and net losses, though.
With no recent news and promotions, CRWG moves somewhat erratically. Depending on the content, the annual report may be an important turning point for a serious move in either direction.
