NEW YORK, April 10, 2017 (GLOBE NEWSWIRE) -- Aspen Group, Inc. (OTCQB:ASPU), a postsecondary education company, announced today
the closing of a $7.5 million common stock private placement to institutional and accredited investors.
New and existing shareholders participating in the offering included Kinderhook Partners, Alvin Fund, Goudy Park Capital,
Unterberg Capital, P.A.W. Capital Partners, Director Malcolm F. MacLean IV, among others.
The company intends to utilize the proceeds for working capital purposes, to repay all its existing long-term outstanding debt
including the retirement of its $3 million revolving credit line, and to complete the acquisition of a regionally accredited
for-profit university assuming it is consummated.
Chairman and CEO Michael Mathews commented, "This offering significantly improves our balance sheet, deleverages the company and
increases our stockholders’ equity by approximately $6.9 million which satisfies Nasdaq’s equity threshold requirement in
anticipation of uplisting later this year. The stronger financial position also affords the management team the additional
flexibility needed to capitalize on the existing opportunities that lie ahead and puts us in great position to execute on our
long-term plan.”
Lake Street Capital Markets acted as the sole placement agent for the offering.
About Aspen Group, Inc. (OTCQB:ASPU)
Aspen Group, Inc. is a post-secondary education company. Aspen University’s mission is to offer any motivated college-worthy
student the opportunity to receive a high quality, responsibly priced distance-learning education for the purpose of achieving
sustainable economic and social benefits for themselves and their families. Aspen is dedicated to providing the highest quality
education experiences taught by top-tier faculty; 57% of Aspen University’s faculty hold doctoral degrees. To learn more about
Aspen, visit www.aspen.edu.
Media Contact: Aspen Group, Inc. Michael Mathews, CEO 914-906-9159
