Recruiter.com Group, Inc. (NASDAQ:RCRT), a company specializing in computer programming services, has entered into an amendment to its existing Asset Purchase Agreement with Job Mobz, as per an 8-K filing with the Securities and Exchange Commission today. The amendment modifies the terms of the original agreement dated August 16, 2023, extending the closing date to September 2, 2024.
Under the terms of the amended agreement, Recruiter.com will receive a non-refundable payment of $120,000 from Job Mobz within two days. This sum will be deducted from the cash portion of the purchase price as stipulated in the original agreement.
In addition, the amendment introduces an interest compensation clause, where interest on the total outstanding principal amount will accrue at a rate of 12.75%. Furthermore, a penalty clause has been included, with a $25,000 fine to be levied on Job Mobz if the closing does not occur by the newly established deadline.
The amendment also details certain aspects of stock compensation but does not disclose the specifics of these provisions. Except for the changes brought by the amendment, all other terms and conditions of the initial Asset Purchase Agreement remain unchanged and in full effect.
This strategic move comes as Recruiter.com continues to refine its business agreements, ensuring financial terms that align with its operational goals. The inclusion of interest compensation and penalty clauses suggests a focus on securing the company’s financial interests while it extends the timeline for the completion of the acquisition.
Investors and market watchers may view this amendment as a proactive measure by Recruiter.com to safeguard its investment and ensure a favorable outcome from the pending acquisition. The company's shares are traded on the NASDAQ Capital Market under the ticker RCRT, with its common stock purchase warrants listed as RCRTW.
The information provided is based on a press release statement from the SEC filing by Recruiter.com Group, Inc.
In other recent news, Recruiter.com Group, Inc. has announced a registered direct offering of its common stock, priced at $1.00 per share, with a total of up to 400,000 shares available to a select group of accredited investors. This offering is a part of a shelf registration statement filed and declared effective by the SEC in September 2022.
In addition to this, Recruiter.com is in discussions with debt holders to exchange the company's remaining debt for shares of a new Series G Preferred Stock. These shares are slated to be convertible into the company's common stock at a potential discount to the market price.
The preferred stock will have voting rights equivalent to common stock once converted. The company anticipates finalizing this debt exchange before June 30, 2024. CEO Granger Whitelaw highlighted that this strategic reorganization is designed to enhance business continuity, revenue, and shareholder equity.
He also noted that the capital raised will provide short-term working capital and aid the company's ongoing search for synergistic acquisitions in line with their strategic reorganization plan. These are the latest developments in the company's recent activities.
InvestingPro Insights
In light of Recruiter.com Group, Inc.'s recent amendment to its Asset Purchase Agreement with Job Mobz, a glance at the real-time data from InvestingPro reveals a nuanced financial landscape for the company.
With a market capitalization of $7.67 million, the company is navigating through challenging financial waters, as evidenced by a significant revenue decline of 93.03% over the last twelve months as of Q1 2024. Despite this, the company has experienced a strong return of 36.18% over the last three months, which may indicate a positive investor response to the company's strategic decisions or market dynamics.
InvestingPro Tips suggest that while analysts anticipate sales growth in the current year, they do not expect the company to be profitable this year. The stock is known to trade with high price volatility, a factor that investors should consider when evaluating the stock's potential for their portfolios. Moreover, Recruiter.com is recognized as a niche player in the computer programming services industry, a characteristic that can influence its market position and growth prospects.
For those seeking a deeper analysis, InvestingPro offers additional insights and tips on Recruiter.com Group, Inc., which could be invaluable for making informed investment decisions. Use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, and explore the wealth of information available, including 12 more InvestingPro Tips for RCRT at https://www.investing.com/pro/RCRT.
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