A Transformative Agreement: Recruiter.com and GoLogiq Re-orient Their Assets

Recruiter.com Group, Inc. (NASDAQ: RCRT), a prominent recruitment solutions provider, has taken a giant leap towards restructuring its business operations through a definitive agreement. As a part of this agreement, Recruiter.com is slated to purchase the fintech assets of GoLogiq, Inc. (OTC: GOLQ), a renowned global fintech and consumer data analytics company based in the U.S.

This transformative asset purchase agreement is aimed at optimizing shareholder value and realigning the business assets of both public companies, leading to the creation of a Nasdaq-listed company structured to maximize shareholder value.

The Intricacies of the Agreement

The agreement provisions Recruiter.com’s acquisition of several GoLogiq businesses and related assets, including CreateApp, PayLogiq, GoLogiq, and Radix™. These comprise a comprehensive suite of mobile commerce, e-wallet, mobile payment, and big data analytics platforms.

In exchange, GoLogiq will receive approximately 84% of the common stock of Recruiter.com, while the existing Recruiter.com shareholders will initially retain around 16% of the shares.

Following the completion of the business combination, a market capitalization review will be conducted after six months. If the combined company’s market capitalization is at least $130 million, additional shares may be issued to GoLogiq.

Creating a New Nasdaq-Listed Company with a Fintech Focus

With the combined companies valued at approximately $105 million, the agreement considerably surpasses the current market capitalization of Recruiter.com. Following the transaction, Recruiter.com will maintain its Nasdaq Capital Market listing but plans to change its name to better represent the company’s newfound fintech focus.

Meanwhile, GoLogiq plans to continue being quoted on the OTC Markets while retaining its recently acquired GammaRey operating subsidiary. The board of GoLogiq believes this strategic transaction with Recruiter.com will drive enhanced shareholder value.

The Planned Spin-Out and Share Distribution

Upon closing the business combination, Recruiter.com plans to spin out its existing operations into a newly established company, which would be publicly traded on the OTC Markets. In addition to retaining ownership in the newly combined Nasdaq-traded company, Recruiter.com shareholders will receive shares of the new OTC spin-out company.

Leadership Transition and Transaction Advisors

Following the transaction’s closure, almost all existing directors of Recruiter.com will resign, and GoLogiq’s existing directors will be appointed to the Recruiter board, with Brent Suen taking over as chairman. The deal is anticipated to close in late Q3 or early Q4 of 2023. The transaction is being advised by Joseph Gunnar & Co., LLC, Lucosky Brookman LLP, and Kline Law Group, LLP.

RCRT Market Response

Shares of Recruiter.com are skyrocketing 105% through afternoon trading on Tuesday, June 6, 2023. Over the past three months, Recruiter.com has seen average daily volume of 348,280 shares. However, volume of 116.5 million shares or dollar volume of around $45.9 million, has already exchanged hands through afternoon trading. As of this writing, shares of RCRT have returned -5.94% year-to-date.

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