Chinacast Education seals $2.15 million placement of promissory notes

Deal includes 4.34 million five-year warrants, exercisable at $0.40

By Devika Patel

Knoxville, Tenn., Aug. 27 - Chinacast Education Corp. settled a $2.15 million private placement of promissory notes on Aug. 24, according to an 8-K filed Monday with the Securities and Exchange Commission.

The 20% notes mature on Aug. 24, 2013 and may be prepaid at 102.5.

In addition, the investors received 4,342,364 warrants. The warrants are each exercisable at $0.40 for five years. The strike price is a 27.27% discount to the Aug. 23 closing share price of $0.55.

Investors included Fir Tree Value Master Fund, LP, Fir Tree Capital Opportunity Master Fund, LP, Lake Union Capital TE Fund, LP, MRMP Managers LLC, Harkness Trust, Ashford Capital Partners, LP, Anvil Investment Associates, LP, Columbia Pacific Opportunity Fund, LP, Special Situations Fund III QP, LP, Special Situations Cayman Fund, LP, Derek Feng, Doug Woodrum, Daniel Tseung, Stephen Markscheid, Parsifal Partners LLC, Park Financial Corp., Allen R. DeCotiis, Alan N. Colner, Fred Tarter, Sanford M. Schwartz, Stamps Family Partnership III, LP, Peter Keane, Howard S. Berl Trust, Michael Berl and Lake Union Capital Fund, LP.

Proceeds will be used for efforts to retain ownership of schools invalidly removed from the company, efforts to recover cash balances illegally removed from the company, pursuing criminal charges against Ron Chan, Jiang Xiangyuan and others, and to pay professional service providers, payroll and other vendors.

ChinaCast is a for-profit, post-secondary education and e-Learning services provider based in Beijing.

Issuer:	Chinacast Education Corp.
Issue:	Promissory notes
Amount:	$2.15 million
Maturity:	Aug. 24, 2013
Coupon:	20%
Warrants:	4,342,364 warrants
Warrant expiration:	Five years
Warrant strike price:	$0.40
Investors:	Fir Tree Value Master Fund, LP, Fir Tree Capital Opportunity Master Fund, LP, Lake Union Capital TE Fund, LP, MRMP Managers LLC, Harkness Trust, Ashford Capital Partners, LP, Anvil Investment Associates, LP, Columbia Pacific Opportunity Fund, LP, Special Situations Fund III QP, LP, Special Situations Cayman Fund, LP, Derek Feng, Doug Woodrum, Daniel Tseung, Stephen Markscheid, Parsifal Partners LLC, Park Financial Corp., Allen R. DeCotiis, Alan N. Colner, Fred Tarter, Sanford M. Schwartz, Stamps Family Partnership III, LP, Peter Keane, Howard S. Berl Trust, Michael Berl and Lake Union Capital Fund, LP
Settlement date:	Aug. 24
Stock symbol:	Nasdaq: CAST
Stock price:	$0.55 at close Aug. 23
Market capitalization:	$29.9 million

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.