I doubt CrowdGather makes money on this deal. Maybe they break even on the pbnation sale. They get the cash portion of purchase price back, so they only lose the value of the stock*.
- “The total purchase consideration for the PbNation.com site and assets is up to $3.2 million, consisting of $1.4 million in cash, 1,149,425 shares of the Company’s restricted common shares, and certain additional cash and stock compensation totaling up to $800,000 if certain monthly website visitor traffic milestones are achieved.”
“The number of shares issued was calculated by dividing $1 million by the Company’s 10 day volume weighted average share price of $0.87 per share through Friday, May 20, 2011.”
The market gave these latest financial maneuvers a big yawn - the stock price is still $0.10. I wish I knew how Sanjay keeps getting people to give him money. If I had the same business model I would be living in a Samsung refrigerator box underneath an I-40 overpass.
* about $86 = 0.03 ounce paper weight per share x 1,149,425 shares x $80 per ton scrap value