Democrasoft to Transfer Assets to Private Company
New Entity Will Be Wholly-Owned Subsidiary of Democrasoft Holdings, Inc.
SANTA ROSA, Calif., March 11, 2013 /PRNewswire/ -- Democrasoft, Inc. (OTC: DEMO) announced today that effective March 8, 2013, all of its assets and liabilities were transferred into one of its two wholly-owned subsidiaries, Collaborize, Inc. This new private company expects to issue new securities, as appropriate, to interested investors. Reflecting its status as a holding company, Democrasoft will be renamed Democrasoft Holdings, Inc., and the subsidiary (the operating company) will do business as Democrasoft.
The public company (currently Democrasoft, Inc.) will initially be the sole shareholder of the operating company. It will engage in no other activities for the foreseeable future, except as it may benefit from the operations of its private subsidiary. The financial results of the two companies will be consolidated, as required by the accounting rules, and both companies will cease publicly distributing financial or other information.
According to Democrasoft Chairman & CEO Richard Lang, "We are responding to a long-standing fund-raising obstacle, as well as the advice of potential and existing investors who are reluctant to invest in a company whose stock is thinly traded on the public "pink sheets," where our market valuation and liquidity have typically been disconnected from the true value that we believe is inherent in our company and its current and potential opportunities."
"By operating in the form of a private company, we can offer new investors a greatly simplified investment vehicle with only one existing shareholder, our holding company. Meanwhile, we plan to preserve the eventual liquidity that may be available to our shareholders through our public vehicle, upon the success of our private subsidiary" said Lang.
For more information or to schedule an interview with Democrasoft senior management, please contact Mark Kithcart at: firstname.lastname@example.org call 888-993-8683 x 706.
Democrasoft is an innovation and licensing company with a history of pioneering technology. It is the creator of the Collaborize platform and Collaborize Classroom (www.CollaborizeClassroom.com), the multi-award-winning blended-learning platform for grades K-20. It is also the creator of patented and award-winning WeJIT (http://www.mywejit.com), a new model for self-contained, topic-based online collaboration that stretches across various platforms and communities. Democrasoft is dedicated to facilitating a vision of online "social networking with purpose." For more information, please visit www.Democrasoft.com.
Certain statements in this press release constitute "forward-looking statements.'' All statements other than statements of historical facts included in this press release, including those regarding our future financial position and results, business strategy, plans and objectives of management for restructuring, fund raising and future operations are forward-looking statements.
Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding our present and future business strategies and the environment in which we will operate in the future. Factors that could cause our actual results, performance or achievements to differ materially from those in the forward-looking statements include, among others, changes in the political, economic or regulatory conditions in the markets in which we operate, material disruptions in the education and publishing industries and other factors.
Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.
SOURCE Democrasoft, Inc.
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