Democrasoft to Transfer Assets to Private Company
March 11 2013 - 9:00AM
OTC Markets
FOR IMMEDIATE RELEASE: 3-11-2013
For Further Information: Mark
Kithcart: mkithcart@democrasoft.com
or
call 888-993-8683 x706
Democrasoft to Transfer Assets to Private Company
New Entity Will Be Wholly-Owned
Subsidiary of Democrasoft Holdings, Inc.
Santa Rosa, March 11, 2013—
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.
-30-
For more information or to schedule an interview with Democrasoft
senior
management, please contact Mark Kithcart at: mkithcart@democrasoft.com
or 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.
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