On Tuesday, the education technology company Aspen Group Inc (OTCMKTS:ASPU) was in focus after it made a significant new announcement that could bring the stock into focus among investors today.

The company announced yesterday that it had managed to close a private placement of its debentures to JGB Management Inc to generate gross proceeds to the tune of $12.4 million. However, it should be noted that an original issue discount of 11% had been applied in addition to fees and other expenses. Additionally, Aspen Group had also issued its investors with a total of 2.2 million units of five-year warrants.

The proceeds that were generated by the company would be used for the purpose refinancing existing debts and for other working capital-related purposes. Michael Matthews, the Chief Executive Officer and Chairman of the company stated that everyone at the company was thrilled at having closed the transaction. He went on to add that it was going to allow Aspen Group to pay off the outstanding $5 million line of credit. The 36-month debentures had been issued on May 11, 2023 and would carry an interest rate of 15% a year.