Greenwood Hall Raises $4 million to Help Universities Maximize Student Success
October 19 2016 - 7:00AM
Debt Recapitalization Positions Company For
Continued Growth
Greenwood Hall, Inc. (QTCQB:ELRN), a Los Angeles-based education
technology company that helps colleges and universities improve
student engagement and outcomes, announced it has completed a
transaction that provided the Company with $4 million in new
financing to replace and restructure existing debt, improve its
balance sheet, and provide working capital to support growth that
Greenwood Hall continues to experience.
The transaction, led by New York City-based Moriah
Education Management, LLC, with $3.5 million in debt financing,
also included additional capital investments by existing Greenwood
Hall investors, Calabasas, CA-based Redwood Fund LP and Chicago,
IL-based Lincoln Park Capital. Highlights of the transaction are as
follows:
- Elimination of nearly $8.7 million in current liabilities
- Retirement of approximately $6.0 million in bank debt and other
notes
- Net improvement of over $2.2 million to the balance sheet
- Over $ 1 million of Working Capital for growth
“We are excited that our new financing partner,
Moriah Education has, along with our existing investors, affirmed
our business model and positive momentum,” said John Hall,
Greenwood Hall’s Chairman and Chief Executive Officer.
Hall added, “These transactions are truly
transformative in that they provide a level of growth capital that
the Company had not previously enjoyed and improves our balance
sheet. We hope this financing, and the benefits and operating
performance it can facilitate, provide all our constituents with
expanded confidence in our ability to execute. This is an
incredible time in higher education, and we are excited to do more
to help our education partners maximize student success.”
RK Equity Advisors, LLC (Broker-Dealer services
provided through Pickwick Capital Partners, LLC member FINRA SIPC)
acted as financial advisor in connection with respect to the Moriah
Education Management portion of the transaction.
About Greenwood Hall, Inc.
Greenwood Hall is an education technology company
that helps colleges and universities manage the student journey.
Every Greenwood Hall solution is designed to increase revenue and
improve student engagement as well as learning outcomes. Since
2006, Greenwood Hall has developed customized turnkey solutions
that combine strategy, people, proven processes and robust
technology to help schools effectively and efficiently improve
student outcomes, as well as increase revenues and expand into new
marketing channels, such as online learning. Greenwood Hall has
served more than 60 education clients and over 75 degree
programs.
For more information, visit
http://www.greenwoodhall.com, follow us on Twitter @GreenwoodHall
and Facebook at http://www.facebook.com/GreenwoodandHall.
Statement Concerning Forward-Looking
Information
Any statements made in this press release about
Greenwood Hall's future financial condition, results of operations,
expectations, plans, or prospects, including the information under
the heading "Financial Outlook" constitute forward-looking
statements. Forward-looking statements also include those
preceded or followed by the words "anticipates," "believes,"
"could," "estimates," "expects," "intends," "may," "plans,"
"projects," "should," "targets" and/or similar
expressions. These forward-looking statements are based on
Greenwood Hall's current estimates and assumptions and, as such,
involve uncertainty and risk. Forward-looking statements are not
guarantees of future performance, and actual results may differ
materially from those contemplated by the forward-looking
statements because of a number of factors, including the risk
factors described in Greenwood Hall’s Annual Report on Form 10-K
for the period ended August 31, 2015, that are incorporated herein
by reference. Any forward-looking statement in this release
speaks only as of the date in which it is made. Except to the
extent required under the federal securities laws, Greenwood Hall
does not intend to update or revise the forward-looking
statements.
Media Contacts:
John Hall
Chief Executive Officer
Greenwood Hall, Inc.
jhall@greenwoodhall.com
310-907-8200
Ari Raskas
Partner
RK Equity
araskas@rkequity.com
212-300-7421