Recruiter.com Group Inc. has announced what it’s calling a “comprehensive strategic reorganization" following its agreement to buy the fintech assets of GoLogiq Inc.
Recruiter.com plans to change its name and branding to reflect the new fintech focus of the combined company, which the deal values at roughly $105 million. It will continue to trade on the Nasdaq.
Meanwhile, the plan is to spin off the existing business of Recruiter.com into a new entity focused on artificial intelligence-related businesses in the work technology sector, publicly quoted on the OTC Market.
Shareholders will then hold two securities, of Recruiter.com and the spinoff AI company.
"Successfully growing from $8M revenue in 2020 to $25M in 2022, Recruiter.com now prepares to bifurcate into two distinct public entities," CEO Evan Sohn said in a statement.
"This strategic response allows the Nasdaq listing to converge with GoLogiq's fintech operations, while Recruiter.com's growth and AI-related operations transition to the OTC Markets. This significant move sets the stage for shareholders to be a part of two promising ventures in next-generation financial and workforce technologies."
Recruiter.com recently launched a suite of innovative products related to AI and ChatGPT. One such product is its candidate pitch software, which is designed to supercharge recruiters' efficiency by instantly creating summaries of job applicants.
The company also plans to expand its business with Mediabistro, a career site in the media industry, into new media technologies, such as augmented and virtual reality, spatial computing and gaming.
In terms of personnel, Evan Sohn has stepped down as CEO, effective June 2. He will remain with the company as executive chairman, focusing on strategic ventures including the closing of the GoLogiq business combination and the orchestrated spinout of the AI company.
Miles Jennings, a cofounder and the current chief operations officer of Recruiter.com has stepped into the CEO role indefinitely.
"Under Evan's guidance, Recruiter.com dramatically expanded our revenue base and established numerous beneficial partnerships,” Jennings said. “These achievements underscore our resilience and adaptability. As I prepare to take on this new role, I am enthusiastic about aligning our strategic initiatives to unlock further value for our shareholders.”
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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