SHENZHEN, China, January 08, 2021 (GLOBE NEWSWIRE) – EdtechX Meten Education Group Limited (Nasdaq: METX) (“Meten EdtechX”Or theCompany”, Omnichannel English core training (“ELT”) A service provider in China announced today that they have successfully completed a bid for their Warranty to purchase Ordinary Shares at a lower exercise price of $ 1.40. The offer ended at 11:59 pm Eastern time on January 5, 2021.
Meten EdtechX raised $ 6,192,286.80 in total cash from a 4,423,062 Guarantee cash exercise as part of the tender offer. In addition, 2,629,812 Ordinary Shares were warranties to tender for cashless exercise, resulting in 1,364,512 Ordinary Shares being issued.
Meten EdtechX offered the loyal Warranty Holders the opportunity to use their warranty at $ 1.40 from the first warranty exercise price at $ 11.50. Approximately 55.5% of the Company’s outstanding Warranties were used in the tender offer.
Net profits are expected to be in the region of $ 5,730,000 after deducting information agent fees, placement agent fees and other bidding costs and are expected to be used primarily for property acquisition and working capital and for general physical reasons.
Wong Heung Ming, Henry, Chief Financial Officer of Meten EdtechX, said, “We are very pleased with the amazing results of our Offer, and we would like to thank all our loyal custodians for their consideration and consideration. support. This offer is intended to improve shareholder parity, reduce our overdraft warranty and increase institutional investor base. The net cash will be used primarily for general working capital purposes but can be used for potential purchases and investments in high growth online business segments. We also believe that the remaining warranty holders will benefit from the continued reduced exercise price for the Warrant until the Company’s share price is increased. ”
After the Ordinary Shares have been issued as the Warrants are issued under the Exercise Offer, 62,662,122 Ordinary Shares will be issued and payable.
Effective January 6, 2021, the Company has temporarily reduced the exercise price per warrant payable to $ 2.50 per installment, and has provided protection against “full-ratchet” impairment. in respect of a subsequent sale of equity in which any person shall have a right. obtain ordinary shares at an effective price per share which is less than the exercise price of the warranties, subject to the usual exceptions (the “Temporary reduction time”). This reduced price and the protection against “full-ratchet” impairment will apply to all warranties outstanding during the temporary reduction period. The Temporary Reduction Period shall expire at a later date of (i) the date after which the closing price of the Ordinary Shares is equal to or greater than $ 3.00 per share for at least twenty (20) days trade in the previous thirty (30) trading day period or (ii) Monday, March 7, 2021. Upon expiration of the Temporary Reduction Period, the exercise price of the outstanding warrants will be reset to $ 11.50 per allowance and the price of such exercise shall not be subject to the Protection against “full-ratchet” weakening. The defense against a one-time full-ratchet weakening will also end when the Company closes bona fide cash (meaning a full fund raise of at least $ 10 million) at a price per share above $ 2.50 during the temporary reduction period.
Chardan Capital Markets, LLC was a financial advisor and positioning agent to the Company regarding the Offer.
The full terms of the tender offer were set out in the Offer Offer Statement on Schedule TO and related exhibits filed with the Securities and Exchange Commission (“SEC”) on 7 December 2020, as amended. Copies of Schedule TO, the guide and other related materials are available on the SEC website, at www.sec.gov.
For investor and media queries, contact:
Ascent Investment Relationship LLC
Tina Xiao
Phone: +1 917-609-0333
Email: [email protected]
About Meten EdtechX
Meten EdtechX is a leading ELT service provider in China, delivering English language and future skills training for Chinese students and professionals. Through a solemn digital platform and a national network of learning centers, the Company delivers its services under three industry-leading brands: Meten (ELT services for adults and young), ABC (mainly youth ELT services) and Likeshuo (ELT online). It offers superior teaching quality and student satisfaction, enhanced by state-of-the-art technology used across its industry, including centralized AI-led teaching and management systems that record and studying learning processes in real time.
The Company is committed to improving the English language ability and competitiveness of the Chinese people to keep up with the rapid development of globalization. Its expert management aims to further develop the digital platform and expand the network of learning centers to deliver an ever-changing service offering to a growing number of students on throughout China.
For more information, visit https://investor.metenedu-edtechx.com.
Safe Harbor Statement
This publication contains positive statements, based on our expectations, assumptions, estimates and projections about ourselves and our industry, in which there are risks and uncertainties. These positive statements can be defined by terms such as “will,” “expectation,” “expectation,” “future,” “expectation,” “plans,” “belief,” “estimates,” and similar statements. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. A number of factors may cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to: the variability of our ordinary shares; the impact of the COVID-19 revolution, our ability to attract students without a significant reduction in course fees; our ability to recruit, train and retain qualified teachers; our ability to maintain and develop our “Meten” brand; our ability to manage our school network effectively and efficiently and achieve our growth strategy; the outcome of ongoing, or future, litigation or conciliation including those relating to copyright and other intellectual property rights; competition in English training sector in China; changes in our income and some expenses or expenses as a percentage of our income; the expected growth in the English language training market and private education; Chinese government policies related to private education services and providers of such services; health diseases and other incidents in China; and general economic conditions in China. Further information on these and other risks is included in our annual report on Form 20-F and other documents filed with the Securities and Exchange Commission. The Company assumes no responsibility for updating any forward-looking statement, except as required by applicable law. All information provided in this press release and in the attachments is as of the date of this press release, and the Company assumes no responsibility to update such information, except as is required by applicable law.