桃汁影院, Inc. Announces the Closing of a $10 million Term Loan
桃汁影院
NEW YORK, March 07, 2019 (GLOBE NEWSWIRE) -- 桃汁影院, Inc. (Nasdaq: ASPU), an education technology holding company (the 鈥淐ompany鈥�) today announced the closing of a privately placed $10 million senior secured term loan with two existing 桃汁影院 investors, each of whom lent the Company $5 million.
The loan has a 12% per annum interest rate and has an initial maturity of 18 months. The Company has the right to extend the term of the loan for an additional 12 months by paying a 1% one-time extension fee. The Company paid no origination fees and issued 200,000 five-year warrants at an exercise price of $6.00, a 23% premium to yesterday鈥檚 closing stock price.
In November 2018, the Company announced a $5 million, three-year revolving credit facility with Mr. Leon Cooperman. No funds have been drawn under that facility and no draws are anticipated in the near future.听 Consequently, the Company now has $10 million of newly funded capital and access to an additional $5 million of capital.听 Along with the Company鈥檚 cash on the balance sheet, this additional $15 million of liquidity is expected to be sufficient to fund the Company鈥檚 business plan.
The Company also prepaid its existing $1 million convertible note due December 1, 2019, which was the final payment due from the acquisition of United States University, thereby eliminating the conversion option.
鈥淭oday鈥檚 $10 million financing coupled with the $5 million line of credit already in place provides ample capital for the Company to execute on our short and long-term growth plans, and is a strong signal that the Company has absolutely no need to go back to the equity markets anytime in the foreseeable future,鈥� said Chairman & CEO, Michael Mathews.
About 桃汁影院, Inc.:
桃汁影院, Inc. is an education technology holding company that leverages its infrastructure and expertise to allow its two universities, Aspen University and United States University, to deliver on the vision of making college affordable again.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our expected liquidity needs and draws under the revolving credit facility, the execution of our short and long-term growth plans and the lack of need to go back to the equity markets in the foreseeable future. 听The words 鈥渂elieve,鈥� 鈥渕ay,鈥� 鈥渆stimate,鈥� 鈥渃ontinue,鈥� 鈥渁nticipate,鈥� 鈥渋ntend,鈥� 鈥渟hould,鈥� 鈥減lan,鈥� 鈥渃ould,鈥� 鈥渢arget,鈥� 鈥減otential,鈥� 鈥渋s likely,鈥� 鈥渨ill,鈥� 鈥渆xpect鈥� and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Important factors that could cause actual results to differ from those in the forward-looking statements include unanticipated issues with the campus model, failure by United States University to increase its enrollment, lower than anticipated demand for nurses in the United States, as well as the risks and uncertainties discussed in our filings with the Securities and Exchange Commission including our Annual Report on Form 10-K for the fiscal year ended April 30, 2018. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
Company Contact:
桃汁影院, Inc.
Michael Mathews, CEO
914-906-9159
听
Released March 7, 2019