Annual report pursuant to Section 13 and 15(d)

Subsequent Events

Subsequent Events
12 Months Ended
Dec. 31, 2020
Subsequent Events [Abstract]  
Subsequent Events

15. Subsequent Events


On February 1, 2021, the Company entered into a private placement with Ms. Yiran Gu, in which the Company sold 500,000 shares of its common stock at a price per share of $2.00 for gross proceeds of $1,000,000.


On February 22, 2021, the Company issued a press release announcing a business and operational strategy change with respect to its NAPW Network. Prior to its scheduled launch of a new membership website, the NAPW Network is transitioning to an online membership acquisition model utilizing ecommerce-centric technology to replace the previous telemarketing business model. This change in business strategy is expected to increase productivity and reduce membership acquisition costs. As a result of the change to an ecommerce business model, there was an approximate 50% reduction in customer service representatives in the Company’s NAPW Network during the first quarter of 2021.


On March 24, 2021, Professional Diversity Network, Inc. (“PDN”) entered into a stock purchase agreement to acquire equity interests (the “Transaction”) in RemoteMore USA, Inc.‎, a Delaware corporation (“RemoteMore”). At the closing, PDN, through a newly formed subsidiary, will own approximately 45.625% of the total outstanding capital stock of RemoreMore and will have the power to appoint two directors on the three-person board of directors of RemoteMore. In addition, PDN will have the option to acquire an additional 20% of RemoreMore’s outstanding capital stock after 24 months. At the closing of the Transaction, the two founders of RemoteMore, Mr. Boris Krastev and Mr. Boris Borisov (the “Founders”), will enter into employment agreements with RemoreMore, and pursuant to such agreements each Founder will be entitled to receive that number of newly-issued shares of PDN common stock with an aggregate value of $200,000.00, as determined by the average ‎price of the closing trading prices of PDN common stock on the NASDAQ Global Market ‎in the ten consecutive (10) business days immediately prior to the closing date. The grant of such incentive stock will be subject to approval of the ‎Compensation Committee of PDN’s Board of Directors and other conditions.‎ The Transaction is subject to satisfaction of closing conditions and is expected to close in ‎the second quarter of 2021.