Aspen Group, Inc. Announces Completion of $12.4 Million Private Placement

NEW YORK, May 16, 2023 (Globe Newswire) — Aspen Group, Inc. (“AGI”) (OTC Pink: ASPU), an educational technology holding company, announced today that it has closed its private placement bond issuance with Japanese government bonds. Announced. Management Inc. earned $12.4 million in gross proceeds excluding his 11% initial issuance discount, fees and other funding costs from the senior secured debenture issuance. AGI has also issued a total of 2.2 million five-year warrants to investors. The Company intends to use the proceeds from the private placement to refinance existing debt and for working capital purposes.

Aspen Group Chairman and CEO Michael Matthews said, “We are very pleased to announce that we have successfully closed our financing with JGB Team. This will significantly improve the Aspen Group’s financial position. improved, which will enable us to effectively manage changes in loan timing.” Realize financial aid-related cash flow and repayment of his outstanding $5 million loan facility. As we continue to strive to reach our goals, marketing is a key catalyst for increasing enrollment in Aspen University’s popular nursing post-licensure degree programs. Cost-cutting initiatives that improve operating cash flow, such as USU’s MSN-FNP (Family Nurse Practitioner) degree program, have provided opportunities to increase marketing budgets and continue to maintain positive adjusted EBITDA. . ”

The 36-month bonds issued on May 11, 2023 bear interest of 15% per annum, are paid monthly and are non-convertible. AGI’s obligations under the debentures are secured by substantially all of the assets of AGI and its subsidiaries. The Debentures also contain customary positive and negative covenants, events of default, and other customary terms of Senior Secured Debentures. Each stock acquisition right entitles the holder to purchase one share of the Company’s common stock at an exercise price of $0.01 per share for five years from the closing date of the offer.

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The company filed its quarterly reports on Form 10-Q for the three months ending January 31, 2023 with the Securities and Exchange Commission today May 16, 2023. Further details of the terms and conditions associated with this loan agreement can be found here. See footnote section of 10-Q.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including our plans to strengthen our marketing and continue to achieve positive Adjusted EBITDA. “believe”, “may”, “estimate”, “continue”, “anticipate”, “intend”, “should”, “plan”, “could”, ” The words “target”, “may”, “likely”, “intend”, “expect” and similar expressions with respect to us are intended to identify forward-looking statements. We make most of these forward-looking statements based on our current expectations and forecasts regarding future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. It is based on. Important factors that could cause actual results to differ from forward-looking statements include our ability to enroll new students and generate revenue from new marketing programs, the impact of economic downturns, inflation, rising interest rates and banking crises. You can Continued attractiveness of online learning even as COVID-19 recedes; decline in student numbers; impact on competition of trend of non-profit universities using online education; consolidation of competitors, etc. is mentioned. Other risks are included in filings with the SEC, including Form 10-K for the year ending April 30, 2022. Any forward-looking statements we make in this document speak only as of the date they are made. Actual results may differ from time to time due to factors and events, all of which cannot be predicted. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by law.

About Aspen Group Co., Ltd.

Aspen Group, Inc. is an educational technology provider that leverages the infrastructure and expertise to enable its two colleges, Aspen University and United States University, to realize their vision of making college affordable again. Holding company. For more information, please visit www.aspu.com.

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