Aspen Group, Inc. (ASPU), an education technology holding company announced the closing of a privately placed $10 million senior secured term loan with two existing Aspen Group investors, each of whom lent the Company $5 million.

The loan has a 12% per annum interest rate and has an initial maturity of 18 months. The Company has the right to extend the term of the loan for an additional 12 months by paying a 1% one-time extension fee. The Company paid no origination fees and issued 200,000 five-year warrants at an exercise price of $6.00, a 23% premium to yesterday’s closing stock price. In November 2018, the Company announced a $5 million, three-year revolving credit facility with Mr. Leon Cooperman. No funds have been drawn under that facility and no draws are anticipated in the near future. Consequently, the Company now has $10 million of newly funded capital and access to an additional $5 million of capital. Along with the Company’s cash on the balance sheet, this additional $15 million of liquidity is expected to be sufficient to fund the Company’s business plan.

The Company also prepaid its existing $1 million convertible note due December 1, 2019, which was the final payment due from the acquisition of United States University, thereby eliminating the conversion option.

“Today’s $10 million financing coupled with the $5 million line of credit already in place provides ample capital for the Company to execute on our short and long-term growth plans, and is a strong signal that the Company has absolutely no need to go back to the equity markets anytime in the foreseeable future,” said Chairman & CEO, Michael Mathews.