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:
mkithcart@democrasoft.comor call 888-993-8683 x
706.
About Democrasoft
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.