Lingo Media Corp. is an international provider of online and print-based English Language Learning products, operating through its four distinct business units. The company today announced it has secured a $1 million bridge loan financing; the terms of the financing also allow Lingo Media to raise up to $1.5 million in addition to the initial funding.
The company said it will use proceeds of the loan to fund post-closing and integration costs of its recently acquired ELL Technologies Limited; expansion of the ELL Technologies’ sales team; to design, develop and extend Parlo Corp.’s online English assessment product; as well as for general working capital and corporate purposes.
Lingo Media entered into the loan agreement and general security agreements with five lenders. Insider participation consisted of one director/officer who advanced $300,000 and two executive officers who advanced $55,000 in aggregate.
The loan has a maturity date of September 8, 2011, on an interest rate of 9% per annum.
Lingo Media will issue a total of 400,000 common shares, or bonus shares, to the lenders as additional consideration. These bonus shares will be issued based on 20 percent of the value of the loan, divided by a deemed issue price of $0.50 per bonus share. Also per the agreement, Lingo Media will repay to the lenders $0.50 of every $1 raised by Lingo Media through any equity financing during the term of the loan.
For more information visit www.lingomedia.com
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