Lincoln Educational Services Corporation Reports Mandatory Conversion of Series A Convertible Preferred Stock
November 30 2022 - 9:00AM
Lincoln Educational Services Corporation (NASDAQ:
LINC) today announced that it had exercised in full its
right of mandatory conversion of the Company’s Series A Convertible
Preferred Stock. In connection with the conversion, each share of
Series A Convertible Preferred Stock has been cancelled and
converted into the right to receive 4.23729 shares of the Company’s
Common Stock, no par value per share. Shares of the Series A
Convertible Preferred Stock are no longer be outstanding and all
rights of the holders to receive future dividends have terminated.
As a result of the conversion, the aggregate 12,700 shares of
Series A Preferred Stock outstanding were converted into 5,381,360
shares of Common Stock.
“We are delighted to exercise this conversion as
soon as permissible under the preferred stock agreements thereby
eliminating the $1.2 million in annual dividend payments to the
preferred stock holders,” commented Scott Shaw, the Company’s Chief
Executive Officer. “This conversion simplifies our capital
structure and provides additional resources to further execute upon
our strategic initiatives.”
About Lincoln Educational Services
Corporation
Lincoln Educational Services Corporation is a
provider of diversified career-oriented post-secondary education
helping to provide solutions to America’s skills gap. For 75
years, Lincoln has offered and continues to offer recent high
school graduates and working adults degree and diploma
programs. The Company operates under two reportable segments:
Transportation and Skilled Trades and Healthcare and Other
Professions. Lincoln has provided the nation’s workforce with
skilled technicians since its inception in 1946. For more
information, go to www.lincolntech.edu.
Safe Harbor
Statements in this press release and in oral
statements made from time to time by representatives of Lincoln
Educational Services Corporation regarding the Company’s business
that are not historical facts, including those made in a conference
call, may be “forward-looking statements” as that term is defined
in the federal securities law. The words “may,” “will,” “expect,”
“believe,” “anticipate,” “project,” “plan,” “intend,” “estimate,”
and “continue,” and their opposites and similar expressions are
intended to identify forward-looking statements. Forward-looking
statements are based on information available at the time those
statements are made and/or management’s good faith belief as of
that time with respect to future events, and are subject to risks
and uncertainties that could cause actual performance or results to
differ materially from those expressed in or suggested by the
forward-looking statements. Forward-looking statements should not
be read as a guarantee of future performance or results and will
not necessarily be accurate indications of the times at, or by,
which such performance or results will be achieved, if at
all. Generally, these statements relate to business plans or
strategies and projections involving anticipated revenues, earnings
or other aspects of the Company’s operating results. Such
forward-looking statements include the Company’s current belief
that it is taking appropriate steps regarding the pandemic and that
student growth will continue. The Company cautions you that these
statements concern current expectations about the Company’s future
performance or events and are subject to a number of uncertainties,
risks and other influences many of which are beyond the Company’s
control, that may influence the accuracy of the statements and the
projects upon which the statements are based including, without
limitation, impacts related to the COVID-19 pandemic; our inability
to close on the sale of our Nashville campus; our failure to comply
with the extensive regulatory framework applicable to our industry
or our failure to obtain timely regulatory approvals in connection
with acquisitions or a change of control of our Company; our
success in updating and expanding the content of existing programs
and developing new programs for our students in a cost-effective
manner or on a timely basis; risks associated with changes in
applicable federal laws and regulations; uncertainties regarding
our ability to comply with federal laws and regulations, such as
the 90/10 rule and prescribed cohort default rates; risks
associated with the opening of new campuses; risks associated with
integration of acquired schools; industry competition; our ability
to execute our growth strategies; conditions and trends in our
industry; the COVID-19 pandemic and its impact on our business and
the U.S. and global economics; general economic conditions; and
other factors discussed in the “Risk Factors” section of our Annual
Reports and Quarterly Reports filed with the Securities and
Exchange Commission. All forward-looking statements are
qualified in their entirety by this cautionary statement, and
Lincoln undertakes no obligation to publicly revise or update any
forward-looking statements, whether as a result of new information,
future events or otherwise after the date hereof.
LINCOLN EDUCATIONAL SERVICES CORPORATIONBrian
Meyers, CFO973-736-9340
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