BRISTOL, CT - Recruiter.com Group, Inc. (NASDAQ:RCRT), a technology-enabled recruiting solutions provider, has finalized the sale of its website, www.recruiter.com, to Job Mobz, Inc., a firm specializing in Recruitment Process Outsourcing (RPO) and Employer of Record (EOR) services. This transaction, announced today, is part of Recruiter.com's strategy to streamline its operations and improve shareholder value.
The company has also announced the repayment of its outstanding senior debt, which was under the Loan and Security Agreement with Montage Capital II, L.P. The repayment includes a debt settlement agreement with a private investor, resulting in the issuance of 720,000 shares of common stock to fully settle the loan and associated obligations.
Granger Whitelaw, CEO of Recruiter.com, expressed satisfaction with the completion of this critical step in the company's restructuring process. The sale and debt repayment are expected to strengthen the company's balance sheet and provide more flexibility for future initiatives.
Miles Jennings, CFO of Recruiter.com and incoming CEO of the planned CognoGroup spinout, commented on the continued partnership with Job Mobz and the anticipation of future growth for both entities.
As part of the transition, Recruiter.com will shift its investor relations and communications over the next 30 days. During this period, investors can still access filings and press releases through the company's investor relations website, while the recruiter.com domain will start reflecting Job Mobz's operations.
The company plans to provide further updates on its ongoing transition and restructuring efforts, which aim to optimize its services and deliver value to its stakeholders and investors.
This news comes on the heels of a recent recognition of Job Mobz/Recruiter.com by HRO Today as a Bakers Dozen Top RPO provider in 2024.
The information provided in this article is based on a press release statement from Recruiter.com Group, Inc.
In other recent news, ZK International Group Co., Ltd. has completed an initial investment in Recruiter.Com Group, Inc., acquiring 1,749,975 shares at $1.00 per share. This transaction is part of a securities purchase agreement that also allows ZK International an option to invest in an additional 2,000,000 shares at the same price point. This strategic move marks a diversification for ZK International, traditionally known for its work in the miscellaneous fabricated metal products sector, into the technology and service-oriented arena of the job recruitment industry.
Meanwhile, Recruiter.com Group, Inc. has amended its Asset Purchase Agreement with Job Mobz, extending the acquisition closing date to September 2, 2024. The amendment includes a non-refundable payment of $120,000 from Job Mobz, an interest compensation clause with a rate of 12.7%, and a penalty clause for non-completion by the deadline. Additionally, Recruiter.com is negotiating with debt holders to exchange remaining debt for shares of a new Series G Preferred Stock.
ZK International has invested $2 million in Recruiter.com, purchasing 2 million shares at $1.00 per share. The company also secured an option to acquire an additional 2 million shares at the same price within six months. Following these developments, Recruiter.com is focusing on enhancing business continuity, revenue, and shareholder equity, and is seeking synergistic acquisitions.
InvestingPro Insights
Following the recent strategic moves by Recruiter.com Group, Inc. (NASDAQ:RCRT), including the sale of its website and the repayment of its outstanding senior debt, the company's financial health and stock performance have become a focal point for investors. According to InvestingPro data, Recruiter.com has a market capitalization of $7.68 million and has experienced a significant return over the last week, with a 1-week price total return of 11.0%. This performance aligns with an InvestingPro Tip highlighting the company's high return over the last year, which stands at 78.46%.
Analyzing the company's financial metrics, it becomes apparent that Recruiter.com operates with a high degree of price volatility, which is corroborated by an InvestingPro Tip. This could be a factor for investors who prefer stability in their stock holdings. Moreover, the InvestingPro Fair Value estimates the stock's value at $1.86, which is below the previous close price of $2.32, suggesting that the stock might be trading at a premium.
While the company's restructuring efforts are underway, the financial data indicates that Recruiter.com is not profitable over the last twelve months, with a negative gross profit margin of -13.43%. This is reflected in an InvestingPro Tip that points out the company's weak gross profit margins. It's important for investors to consider these aspects, especially in the context of the company's ongoing transition and restructuring efforts.
For those looking for more insights, there are additional InvestingPro Tips available on the company's profile, which can provide further guidance on the potential risks and opportunities associated with Recruiter.com's stock. Visit InvestingPro for a comprehensive view and to access these additional tips.
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