Cloud Nine Education Group Ltd. (CVE:CNI) said it has closed a non-brokered private placement financing of secured convertible debentures for the aggregate principal amount of $1,199,600.
The group said the proceeds of the debenture financing are expected to be used for general working capital and payables.
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The terms of the debentures include:
- a maturity date of one year from the date of issuance and the principal amount of the debenture, together with any accrued and unpaid interest, will be payable on the maturity date, unless earlier converted in accordance with its terms;
- each debenture bears interest at the rate of 5% per annum, with the Interest payable on the maturity date unless earlier converted
- the principal amount of a debenture, together with all accrued and unpaid interest thereon, is convertible into units of the company at the option of the holder at a conversion price of $0.06 per debenture unit, with each debenture unit comprised of one common share of the company and one transferable share purchase warrant, with each debenture warrant exercisable into one additional debenture share at an exercise price of $0.07 each for a period of two years from the date of conversion.
Repayment by the company of amounts owing under the debentures is secured by a charge over all of the assets of the company. All subscribers to the debenture financing entered into an agency and inter-lender agreement with the company, under which the subscribers have appointed an agent to act on their behalf as to certain matters relating to the debentures, including with respect to enforcement of the security interest.
Cloud Nine Education is part of a shift in the teaching of ESL (English as a second language) into the digital world with its cloud-based platform used as a tool by teachers in the classroom.
The Vancouver-based company specializes in the development and sale of its cutting-edge Cloud Nine ESL Program. The curriculum is technologically advanced to meet the needs of increasingly mobile students. Tablets replace textbooks and the course content includes instructional videos and internet links which learners use to supplement in-class studies.
Contact the author at jon.hopkins@proactiveinvestors.com