Recruiter.com Group, Inc. (OTCQB:RCRT) (“Recruiter.com” or the “Company”), a leading hiring platform for the world's largest network of recruiters, today announced that it has successfully closed an oversubscribed private placement of convertible debentures in the aggregate principal amount of approximately $2,953,000 bearing an annual interest rate of 8%. Both funds and private individual accredited investors participated in the offering.
"We are very pleased to have completed the sale of the debentures," said Evan Sohn, CEO of Recruiter. "On behalf of all of us at Recruiter.com, I would also like to welcome the new group of investors who participated in this round of financing, and look forward to sharing our successes in the coming months, as we continue to build traction tied to our growth objectives.”
The Company intends to direct the proceeds of the financing into programs that engage the Recruiter.com network of over 25,000 small and independent recruiters, sales, and general corporate purposes, including the anticipated financial, administrative, and legal costs for an uplisting to a major market exchange.
Recruiter entered into a Securities Purchase Agreement, effective May 28, 2020 (the “Purchase Agreement”), with several accredited investors (the “Purchasers”). Pursuant to the Purchase Agreement, the Company sold to the Purchasers a total of $2,953,125 in the aggregate principal amount of 12.5% Original Issue Discount Senior Subordinated Secured Convertible Debentures (the “Debentures”) and (ii) 1,845,703 common stock purchase warrants (the “Warrants”), which represents 100% warrant coverage. The Company received a total of $2,625,000 in gross proceeds from the offering, taking into account the 12.5% original issue discount, before deducting offering expenses and commissions, including the placement agent’s commission and fees.
The Debentures and the related warrants have not been registered under the Securities Act of 1933 (the "Securities Act"), or applicable state securities laws, and accordingly may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws.
Recruiter.com Group, Inc.
Recruiter.com is a hiring platform for the world's largest network of recruiters. We empower businesses to recruit specialized talent faster with virtual teams of recruiters and AI job-matching technology. Visit https://www.recruiter.com.
For investor information, visit https://www.recruiter.com/investors.html.
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Company Contact:
Recruiter.com Group, Inc.
Phone: (855) 931-1500
Investor Relations:
Dave Gentry
RedChip Companies, Inc.
Phone: (407) 491-4498
dave@redchip.com
Cautionary Note Regarding Forward-Looking Statements:
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including the Company’s expected future success, expected uplisting to a national securities exchange and the use of proceeds. The words "forecasts" "believe," "may," "estimate," "continue," "anticipate," "intend," "should," "plan," "could," "target," "potential," "is likely," "will," "expect" and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements primarily on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, and financial needs. Important factors that could cause actual results to differ from those in the forward-looking statements include continued demand for professional hiring, the impact of the COVID-19 pandemic on the job market and the economy, our ability to meet the initial listing requirements of a national securities exchange, and factors that affect the capital markets in general and early stage technology companies specifically, and the Risk Factors contained within our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2019. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as may be required by law.