Professional Diversity Network, Inc. announced that it expects to receive $3 million in funding from Cosmic Forward Ltd
January 12, 2017
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Professional Diversity Network, Inc. (NasdaqCM:IPDN) announced that it has entered in a stock purchase agreement for private placement of 312,500 common shares at a price of $9.60 per share for gross proceeds of $3,000,000 on January 13, 2017. The transaction will include participation from existing investor Cosmic Forward Ltd. After giving effect to this transaction, investors’ beneficial ownership in the company would increase from 51% to approximately 54.64% on a fully-diluted basis. The company expects to receive net proceeds of approximately $2,800,000, giving effect to payment of transaction related expenses. The proposed transaction was approved and adopted by a special committee of the board of directors of the company, composed entirely of independent directors who are not Cosmic Forward Limited board designees. The transaction is subject to customary closing conditions. The company expects to complete the proposed transaction in mid-January 2017. The common shares are being offered and sold to in the transaction are under Section 4(a)(2) under the Securities Act of 1933, as amended, and Rule 506(b) of Regulation D promulgated there under and have not been registered under the Securities Act.
Professional Diversity Network, Inc. is a developer and operator of online and in-person networks that provides access to networking, training, educational and employment opportunities for diverse individuals. The Company serves a variety of such communities, including Women, Hispanic-Americans, African-Americans, Asian-Americans, persons with disabilities, Military Professionals, and Lesbian, Gay, Bisexual, Transgender and Queer (LGBTQ+). The Company operates through three segments: Professional Diversity Network (PDN Network), National Association of Professional Women (NAPW Network) and RemoteMore USA (RemoteMore). The PDN Network segment includes online professional networking communities with career resources tailored to the needs of various diverse cultural groups. The NAPW Network segment is a women-only professional networking organization. The RemoteMore segment provides companies with talented engineers to provide solutions to their software needs.