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.
