UNITED STATES 

SECURITIES AND EXCHANGE COMMISSION 

Washington, D.C. 20549

 ________________________________

 

FORM 8-K

 ________________________________

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): March 27, 2024

________________________________

 

RECRUITER.COM GROUP, INC.

(Exact name of registrant as specified in its charter)

 

Nevada

 

001-53641

 

90-1505893

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

500 Seventh Avenue

New York, New York 10018

(Address of principal executive offices) (Zip Code)

 

Registrant’s telephone number, including area code: (855) 931-1500

 

Not Applicable 

(Former name or former address, if changed since last report.) 

________________________________

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

  

Securities registered pursuant to 12(b) of the Act:

 

Title of class

 

Trading symbol

 

Name of exchange on which registered

Common Stock

 

RCRT

 

NASDAQ Capital Market

Common Stock Purchase Warrants

 

RCRTW

 

NASDAQ Capital Market

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

 

Emerging growth company ☒

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

 

Item 1.01 Entry into a Material Definitive Agreement.

 

Conversion of Parrut Promissory Note

 

On March 27, 2024, Recruiter.com Group, Inc., a Nevada corporation (the "Company) authorized and consented to the conversion of a portion of the outstanding Promissory Note (the "Note") originally issued to Parrut, Inc. under the terms of the acquisition agreement dated July 7, 2021. The Note, in its original principal amount of One Million Seven Hundred Fifty Thousand United States Dollars ($1,750,000), has been partially converted into equity pursuant to the terms of a Consent to Conversion and Notice of Conversion attached as Exhibit 2.1.

 

The Company and Parrut, Inc. agreed to the conversion of the remainder of the Note, in the amount of Two Hundred Forty-Five Thousand Eight Hundred Eighty-Four United States Dollars and Fifty-Three Cents ($245,884.53) into 168,414 shares of the Company's common stock. This conversion represents a conversion price of $1.46 per share. The agreed-upon conversion has been made in full satisfaction of the specified amount of the Note, including accrued interest and penalties to date, with no other amounts due.

 

The shares of common stock issued in connection with this conversion have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), and were issued in reliance upon the exemption from registration provided by Section 4(a)(2) of the Securities Act and/or Rule 506 of Regulation D promulgated thereunder. The issuance does not involve a public offering of securities, as the recipient is familiar with the Company's operations and financial condition, and there is no general solicitation or advertising for the securities issued.

 

Amendment to GoLogiq Technology License and Commercialization Agreement

 

On February 23, 2024, the Company entered into a certain Technology License and Commercialization Agreement (the “GOLQ Licensing Agreement”) with GoLogiq, Inc. (“GOLQ”) whereby GOLQ grants the Company a worldwide, exclusive license (the “GOLQ License”) to the Company to develop its fintech technology (the “GOLQ Technology”) and sell products derived thereof, including its Createapp, Paylogiq, Gologiq, and Radix AI technology and products (the “Licensed Products”), for a term of 10 years, with automatic two (2) year renewals as further described therein (the “Term”). 

 

On March 28, 2024 (the “Effective Date”), the Company and GOLQ entered into an Amendment to Technology License and Commercialization Agreement (the “Amendment”).  Under the Amendment, the Company and GOLQ agreed to and added Section 3.3 to further detail technical assistance from GOLQ to the Company.  In addition, Section 5.1 was amended such that the royalty was lowered from eight percent (8%) to five percent (5%) for which the Company granted to GOLQ a warrant to purchase two hundred ninety-two thousand (292,000) shares of Company Common Stock (the “Warrant”) for a price equal to $0.01 per share (the “Exercise Price”).  The Warrant may be exercised at any time commencing upon the date that is six (6) months from the Effective Date and terminating at 5:00 P.M., New York time, on the three (3) year anniversary of the Effective Date, unless the closing sale price for the common stock of the Company has closed at or above $5.00 for ten consecutive trading days.   Further, the Amendment contains a blocker provision that limits shares issuable under the Warrant such that the shares beneficially owned by GOLQ does not exceed 9.99% of the total number of issued and outstanding shares of the Company’s Common Stock (including for such purpose the shares of Common Stock issuable upon such exercise).   Detailed terms can be found pursuant to the Amendment attached as Exhibit 2.2.

 

Item 3.02 Unregistered Sales of Equity Securities

 

The information set forth in Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.

 

Exhibit No.

 

Description

2.1*

 

Consent to Conversion and Notice of Conversion

2.2*

 

Amendment to Technology License and Commercialization Agreement with GoLogiq, Inc.

 

*Exhibits and schedules have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The registrant hereby agrees to furnish copies of any of the omitted schedules or exhibits upon request of the U.S. Securities and Exchange Commission.

 

 
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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 Recruiter.com Group, Inc.
    
Date: April 2, 2024  By:/s/ Miles Jennings

 

 

Miles Jennings

 
  

Chief Financial Officer

 

 

 
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EXHIBIT 2.1

CONSENT TO CONVERSION AND NOTICE OF CONVERSION

 

This Consent to Conversion and Notice of Conversion relates to the Promissory Notes of Recruiter.com Group, Inc., a Nevada corporation (the “Company”), originally issued to Parrut. Inc pursuant to that certain acquisition agreement dated as of July 7, 2021 (collectively, the “Purchase Agreement”) in the original principal amounts of one million seven hundred fifty thousand United States Dollars ($1,750,000) (the “Note”).

 

On October 19, 2022, Parrut agreed to subordinate the Note to a promissory note issued to Montage Capital II, L.P. In return, we restructured the payment schedule for the Parrut note, which was set to mature on August 31, 2023, and bears interest at 12%. On August 31, 2023, we did not make payments of amounts due under the note and defaulted with Parrut.

 

 The Company hereby authorizes and consents to the conversion of an aggregate of two hundred forty-five thousand eight hundred eighty-four United States Dollars and fifty-three cents ($245,884.53) of the Note to 160,709 shares of the Company's common stock, representing a conversion price of $1.46 per share. The Note, including any and all accrued interest and penalties to date, shall be considered paid in full and there are no other amounts due whatsoever.

 

The undersigned hereby elects to convert the full remaining Note balance into shares of common stock of the Company according to the conditions hereof, as of the date written below. If shares of common stock are to be issued in the name of a person other than the undersigned, the undersigned will pay all transfer taxes payable with respect thereto and is delivering herewith such certificates and opinions as reasonably requested by the Company in accordance therewith. No fee will be charged to the holder for any conversion, except for such transfer taxes, if any.

 

The undersigned agrees to comply with the prospectus delivery requirements under the applicable securities laws in connection with any transfer of the aforesaid shares of Common Stock.

 

Conversion calculations:

Date to Effect Conversion: March 27, 2024

Amount of Note to be Converted: $245,884.53

Number of shares of common stock to be issued: 168,414

EXHIBIT 2.2

 

AMENDMENT TO TECHNOLOGY LICENSE AND COMMERCIALIZATION AGREEMENT

 

This Amendment to Independent Contractor Agreement (this “Amendment”) is entered into as of March 28, 2024 (the “Effective Date”), by and between GoLogiq, Inc., a Nevada corporation (“GoLogiq”, “GOLQ”, or “Licensor”) and Recruiter.com Group, Inc., a Nevada corporation (“Recruiter”,“RCRT”, the “Company”, or “Licensee”) with respect to the Technology License And Commercialization Agreement dated February 23, 2024 (the “Original Agreement”). Each of GOLQ and RCRT is sometimes referred to individually herein as a “Party” and collectively as the “Parties”.

 

RECITALS

 

WHEREAS, the Parties hereby agree to amend and/or modify the Original Agreement:

 

NOW, THEREFORE, in consideration of the mutual covenants contained herein, and for other good and valuable consideration, the Parties hereto, intending to be legally bound, hereby agree as follows:

 

1. Section 3 of the Original Agreement shall be amended to include the following Section 3.3:

 

3.3 Technical Assistance. Notwithstanding anything contrary contained herein, during the term of this Agreement, Licensor shall provide Licensee with technical assistance, free of charge, including maintenance support and patch updates, in connection with the GOLQ Technology and the Licensed Products.

 

3.3.1 Time Commitment. Licensor shall, upon the request of Licensee, dispatch its engineers to Licensee for training of Licensee's personnel. The total period for such technical assistance excluding the travelling time shall not exceed 10 man days (based on 8 hours of work per engineer per day), and any further assistance of Licensor's engineers shall be determined by the mutual agreement of the Parties. After the initial dispatch by Licensor of its engineers for 10 man-day period, the salaries of Licensor's engineers for the dispatched period shall be paid by Licensee. All the expenses incurred by the engineers of Licensor for business class airfare, lodging and food and other general living expenses during their stay for the period of technical assistance shall be borne by Licensee.

 

3.3.2 Further Assistance. Any further assistance may be rendered by Licensor upon mutual agreement of the Parties.

 

2. Section 5.1 of the Original Agreement shall be amended and replaced in its entirety by the following:

 

5.1.1 Upfront Payment. RCRT will issue to GOLQ such number of shares of RCRT common stock that represents 19.99% of the number of issued and outstanding shares of the RCRT common stock on the Business Day prior to the Effective Date (the “Shares”). Following the issuance of the Shares, GOLQ will own 16.66% of the issued and outstanding shares of the RCRT common stock. For the avoidance of doubt, the total aggregate transaction value shall equal the value of the Shares as of the Effective Date.

 

5.1.2. Royalty. In addition to the Installment Payment, RCRT shall pay to GOLQ a royalty of five percent (5%) of Net Sales of Licensed Products in the Territory during the Term.

 

5.1.3 Warrant. In consideration of the License and technical assistance granted under this Agreement, RCRT shall grant to GOLQ a warrant to purchase two hundred ninety-two thousand (292,000) shares of RCRT Common Stock (the “Warrant”) for a price equal to $0.01 per share (the “Exercise Price”). This Warrant may be exercised, except as otherwise provided herein, in whole or in part at any time commencing upon the date that is six (6) months from the Effective Date and terminating at 5:00 P.M., New York time, on the three (3) year anniversary of the Effective Date, unless the closing sale price for the common stock of the Company has closed at or above $5.00 for ten consecutive trading days. At such time the Holder will receive 30 days notice upon which to exercise the warrant prior to its expiration (the “Expiration Date”). GOLQ acknowledges and agrees that the subsequent issuance of shares under the Warrant at the time of Exercise Notice may be subject to approval by the shareholders of RCRT, but only if required at the time under applicable law or exchange regulations.

 

 
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(a) Blocker Provision. Notwithstanding anything to the contrary contained herein, the number of shares of Common Stock that may be acquired by GOLQ upon any exercise of Warrants in the Company and its successor(s) shall be limited to the extent necessary to ensure that, following such exercise (or other issuance), the total number of shares of Common Stock then beneficially owned by GOLQ and its affiliates and any other persons whose beneficial ownership of Common Stock would be aggregated with GOLQ for purposes of Section 13(d) of the Exchange Act, does not exceed 9.99% of the total number of issued and outstanding shares of Common Stock (including for such purpose the shares of Common Stock issuable upon such exercise). For such purposes, beneficial ownership shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. Each delivery of a Notice of Exercise hereunder will constitute a representation by GOLQ that it has evaluated the limitation set forth in this paragraph and determined that issuance of the full number of Warrant Shares requested in such Notice of Exercise is permitted under this paragraph. This provision shall not restrict the number of shares of Common Stock GOLQ may receive or beneficially own in order to determine the amount of securities or other consideration that GOLQ may receive in the event of a merger or other business combination or reclassification involving the Company. For the avoidance of doubt, this restriction shall not be conferred upon any third party to whom GOLQ transfers such Warrants. This restriction may not be waived.

 

5.1.4 Option to Purchase. GOLQ hereby grants to RCRT the option to purchase the GOLQ Technology and the Licensed Products for a purchase price of $400,000 for the duration of the Term. If RCRT elects to exercise this option, RCRT acknowledges that such exercise may be subject to shareholder approval by the shareholders of GOLQ at the time of election, but only if required under applicable law or regulation.

 

3. Except as amended or otherwise modified under this Amendment, all other terms of the Original Agreement shall remain in full force and effect. All references to “Agreement” in the Original Agreement shall hereafter be taken to mean the Original Agreement as amended or modified by this Amendment.

 

4. This Amendment may be executed in multiple counterparts and by electronic or facsimile signature, each of which shall be deemed an original and all of which together shall constitute one instrument.

 

[signature page follows]

 

 
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IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized representatives as of the Effective Date.

 

Recruiter.com Group, Inc.

 

 

By:

 

 

Name:

 

 

Title:

 

 

GoLogiq, Inc.

 

 

By:

 

 

Name:

 

 

Title:

 

 

 
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