NEW YORK - Recruiter.com Group, Inc. (NASDAQ:RCRT), a recruiting platform, has entered into a significant licensing agreement with GoLogiq, Inc. (OTC:GOLQ), a move that signals a strategic pivot towards empowering small and medium-sized businesses through advanced mobile app technologies.
The licensing deal, announced today, grants Recruiter.com exclusive global rights to develop and sell products using GoLogiq's fintech technology, including the CreateApp, Paylogiq, Gologiq, and Radix AI platforms, for a term of 10 years with automatic two-year renewals.
The agreement, finalized on Thursday, February 23, 2024, replaces previous agreements with GoLogiq and includes compensation of 19.99% of Recruiter.com's outstanding stock and an 8% sales fee on the products.
In parallel with the licensing deal, Recruiter.com is progressing with its strategic sale to Job Mobz and plans for an asset spin-out. The acquisition by Job Mobz, which involves the purchase of certain intellectual property including the Recruiter.com website and trademark, is still in process and is anticipated to close within the next thirty days without the need for shareholder approval, as per an amendment signed on February 13, 2024.
Additionally, the company is moving forward with its plans to consolidate assets into what is planned to be renamed CognoGroup. This entity will house various assets and ventures, including Mediabistro and shares of Job Mobz post-transaction, as well as shares of Futuris, Inc. from the recent sale of its healthcare staffing business.
On the compliance front, Recruiter.com disclosed in an 8K filed on February 23, 2024, that it is addressing issues related to Nasdaq's minimum shareholders' equity and shareholder meeting requirements, with a hearing scheduled for April 18, 2024. The company believes the licensing agreement with GoLogiq will add approximately $3.5 million in assets to its balance sheet, potentially resolving the shareholder's equity issue.
This news is based on a press release statement.
InvestingPro Insights
As Recruiter.com Group, Inc. (NASDAQ:RCRT) embarks on a transformative licensing agreement with GoLogiq, Inc., the company's financial health and market performance provide essential context for investors. With a market capitalization of just $2.25 million, Recruiter.com is navigating the competitive tech landscape as a micro-cap company. The InvestingPro data underscores the company's challenges, revealing a significant sales decline of 62.19% in the last twelve months as of Q3 2023, alongside a stark quarterly revenue drop of 96.82% in Q3 2023. This contraction aligns with an analyst forecast of a sales decline in the current year, which is an InvestingPro Tip that investors should consider.
The company's stock price reflects these financial headwinds, having suffered a 34.87% decrease in the last week alone. This volatility is not new; Recruiter.com has seen its price plummet by 72.2% over the last year, demonstrating the high price volatility that is characteristic of the stock, another InvestingPro Tip. Despite these challenges, the company has managed a 15.18% return over the last three months, indicating some resilience in investor sentiment.
As Recruiter.com navigates its strategic initiatives, including the licensing deal with GoLogiq and the pending sale to Job Mobz, these financial metrics and market performance indicators are crucial for stakeholders. For a deeper dive into the company's prospects and additional InvestingPro Tips, investors can visit Investing.com Pro. With 14 more tips available, users can take advantage of the exclusive offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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