“We have been working on several initiatives and felt it timely to share some of these with our shareholders in advance of what we believe will continue to be strong revenue performance for the fiscal year which just ended April 30, 2015,” said Sanjay Sabnani, CrowdGather’s Chairman and CEO. “As the performance of Mega Fame Social Casino and Slots continues to drive an increase in our revenues, cost cutting measures have also started to show effect. Our company is approaching breakeven on an operational basis helped by increased revenues and decreased costs, but resources are tight and obtaining financing to mitigate our short term debt remains our top priority. Despite the difficulties we have encountered raising efficient and cost effective capital as an issuer on the OTC markets, we had previously increased our forum business to record revenue and traffic levels and then diverted a portion of our publishing assets to focus on social gaming through the Plaor acquisition. Now that acquisition – Mega Fame – has more than doubled in revenues in the little over one year that we have operated it, bringing us once again to a position of growing revenues and improving margins.
Through Crowdgather’s purchase of WeedTracker.com, an online community founded in 2005, the startup began developing its digital cannabis portfolio, adding RapMusic.com, and its first cannabis themed gaming title, Weed in Hollywood during this summer.
“Perhaps the most exciting thing for us is the prospect of launching CrowdGather.com as a crowdfunding portal under the new SEC guidelines for startup issuers in 2016. Our focus will be to help cannabis and digital startups raise funding from a large network of investors we hope to attract to CrowdGather,” continued Sabnani. “I only wish something like what we are envisioning had existed for us when we went public in 2008. Going forward, our business model will be quite simple, while we drive revenues and earnings from our digital assets – sites, games, and apps – we will use crowdfunding as our way of building a digital business ecosystem for the future. In all cases, we will pursue legal and permissible opportunities to give our shareholders an ever increasing exposure to the growth of the cannabis sector as a vertical. We realize that crowdfunding can be a competitive field, but we believe our online and social media experience may give us some strategic advantages while our own struggles with funding will definitely give us empathy for the startups we seek to help. We are excited about the future in a way we have not felt in a while, but our short term debt and growth capital deficit issues both need to be addressed in order for us to succeed. We remain optimistic that this will happen and that we will be given what we need to grow this company to the heights it deserves.”