Skillful Craftsman Education signs non-binding term sheet for financing

Skillful Craftsman Education Technology announced that it has entered into a non-binding term sheet for a proposed private placement of the Company’s convertible note with a principal amount up to $10M. The note under the proposed financing is designed to be an unsecured general obligation of the Company that will mature in five years following the issuance, bearing interest at the rate of 7% per annum which shall be payable on the maturity date. According to the proposed terms, at any time after the issuance and before the maturity date, the note is convertible, in whole or in part, into the ordinary shares of the Company at the option of the holder thereof. If the closing bid price of the Ordinary Shares as reported by Nasdaq exceeds the conversion price for at least five consecutive trading days, all of the outstanding balance of the note shall be automatically converted into Ordinary Shares. The conversion price is initially $1.82 per Ordinary Share, subject to adjustment as set forth in the note. Unless previously converted, the Company shall repay the outstanding principal amount plus all accrued but unpaid interest on the maturity date. Readers are cautioned that the foregoing is a description of the proposed terms that are non-binding and subject to further negotiation by the parties.