Sophrosyne Capital, Charlestown Capital Advisors were lead investors
By Devika Patel
Knoxville, Tenn., July 30 – Aspen Group, Inc. gave further details about a $1.63 million private placement of stock in an 8-K filed Wednesday with the Securities and Exchange Commission. The deal was announced and settled on July 29.
The company sold 10,525,809 common shares at $0.155 per share. The price per share is a 10.71% premium to the $0.14 closing share price on July 28.
Investors also received warrants for 5,262,907 shares. Each warrant is exercisable at $0.19 for five years. The strike price is a 35.71% discount to the July 30 closing share price.
The lead investors were Sophrosyne Capital LLC and Charlestown Capital Advisors, LLC, and chief financial officer Janet Gill invested $100,750.
“This transaction provides Aspen additional working capital to expand on our business model of offering any motivated, college-worthy student the ability to earn their degree debt-free through monthly payment plans,” chairman and chief executive officer Michael Mathews said in a press release announcing the deal. “Additionally, this coming quarter we will be launching the Desire2Learn Integrated Learning Platform for all Aspen students, as we continuously strive for improvements to student learning outcomes.”
The Denver-based company offers business consulting, real estate development and investment services.
| Issuer: | Aspen Group, Inc.
|
| Issue: | Common stock
|
| Amount: | $1,631,500
|
| Shares: | 10,525,809
|
| Price: | $0.155
|
| Warrants: | For 5,262,907 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.19
|
| Investors: | Sophrosyne Capital LLC and Charlestown Capital Advisors, LLC (leads), Janet Gill (for $100,750)
|
| Announcement date: | July 29
|
| Settlement date: | July 29
|
| Stock symbol: | OTCBB: ASPU
|
| Stock price: | $0.14 at close July 28
|
| Market capitalization: | $9.99 million
|
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