Scientific Learning Corp. Announces Initial Financing Round to Support Expected Capital Raise for China Expansion
Jan 12, 2018
OTC Disclosure News Service
–
Scientific
Learning Corp. (“SCIL”) announced now that it has executed binding
squeeze agreements for a sale of 2,864,000 shares of a common stock
during a cost of $0.625 per share, scarcely a 23 percent reward over the
past 12 months’ weighted normal price, for total deduction of
$1,790,000 (the “Financing”). Investors in a turn embody a majority
of a members of SCIL’s Board of Directors; members of SCIL’s
government team; Rick Lee, owner and CEO of BrainMaps, China; SCIL
ubiquitous partners; and SCIL’s largest shareholder. Proceeds from
a Financing are approaching to be used for losses compared with
SCIL’s formerly announced skeleton to squeeze BrainMaps and raise
additional collateral to accelerate a quick enlargement of BrainMaps
English denunciation training centers.
On Dec. 1, 2017 SCIL
announced that it had sealed a non-binding Letter of Intent (LOI)
with BrainMaps to acquire a Shanghai-based blended training company,
that now has some-more than 70 franchised English denunciation learning
centers opposite China. BrainMaps combines SCIL’s law online
neuroscience-based denunciation training technologies with BrainMaps offline
methodology to capacitate Chinese students to grasp fluency in English in
as small as 3 years. Rick Lee of BrainMaps commented, “Combining
Scientific Learning’s online programs with BrainMaps’ classroom
activities and opening opportunities gives students an corner in
gaining English skills quick – and in a rarely motivating and enduring
way.”
The due merger of BrainMaps is fortuitous on finalization of
decisive transaction agreements, execution of financing transactions
to obtain a collateral compulsory to acquire and enhance BrainMaps, and
house of executive and shareholder approval, among other conditions. SCIL
has engaged Tyton
Partners, a heading provider of investment banking and strategy
consulting services to a tellurian believe sector, as a exclusive
investment banking confidant to support with a transaction.
“This stream turn of financing will cover transaction costs, allowing
some-more of a destiny collateral lift to be used for a quick enlargement of
BrainMaps in China, a nation with a largest English language
training marketplace in a world,” pronounced Robert Bowen, CEO and authority of
a house of SCIL. “Participants in this turn know a potential
for expansion that a multiple of Scientific Learning’s
neuroscience-based training innovations and BrainMaps’ operational
value can achieve.”
The Financing is conditioned on SCIL receiving any claim state
bonds law permits and other customary conditions. SCIL expects to
tighten a Financing and obtain a supports before a finish of Jan 2018.
About Scientific Learning Corp.
Based in Oakland, Calif., Scientific Learning is a heading SaaS service
provider that delivers neuroscience-based educational technologies.
Scientific Learning’s programs, Fast ForWord® and Reading Assistant™,
have been used by some-more than 2.8 million learners in some-more than 2,600 K-12
schools in a United States, by over 500 private use clinicians,
by thousands of students around a direct-to-consumer channel, and in over
55 countries around value-added resellers (VAR). The Fast ForWord programs
cross-train foundational denunciation and cognitive skills compulsory for
quick English denunciation development, while Reading Assistant uses speech
corroboration record to yield real-time visual feedback to
students as they review and speak, in a demeanour identical to that of an
individualized denunciation and reading coach.
About BrainMaps
BrainMaps, a VAR partner of Scientific Learning’s for over 10 years, was
founded by Rick Lee and Tiffany Koo, who are regulating their past experience
as inhabitant directors for companies such as Wall
Street English and Gymboree to
fast enhance a BrainMaps indication opposite China. Based on a compelling
tyro outcomes and quick growth, BrainMaps was named a tip 10
authorization in China by Entrepreneur magazine in 2016.
Safe Harbor Statement: The information posted in this release
contains forward-looking statements within a definition of a Private
Securities Litigation Reform Act of 1995. You can brand these
statements by use of a difference “may,” “will,” “should,” “plans,”
“explores,” “expects,” “anticipates,” “continue,” “estimate,” “project,”
“intend,” and identical expressions. The forward-looking statements in
this recover embody statements per a shutting of a announced
Financing; and SCIL’s due merger of BrainMaps. Forward-looking
statements engage risks and uncertainties that could means actual
formula to differ materially from those projected or anticipated.
Factors that could means formula or events to differ from current
expectations include, among other things: a inability to obtain
compulsory state bonds law permits for a Financing; a inability
finish a successive financing transaction sufficient to finish the
merger of BrainMaps or during all; a inability to secure capitulation of
a merger from SCIL’s house of directors or a shareholders for
a BrainMaps acquisition; ubiquitous mercantile and business conditions;
effects of intensity geopolitical disturbance and informal conflicts;
competition; and several other factors over SCIL’s control. Although
SCIL believes that a expectations reflected in such forward-looking
statements are reasonable, it can yield no declaration that such
expectations will infer to have been correct. Readers are cautioned not
to place undue faith on these forward-looking statements, that speak
usually as of a date made. Except as compulsory by law, SCIL assumes no
requirement to refurbish or correct any forward-looking statements.
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