- Aspen Group ( NASDAQ: ASPU ) said Tuesday it canceled a $3M equity distribution deal with Northland Securities as it does not require the financing due to its ongoing restructuring, which is expected to result in over $14M savings through FY23-end.
- "... we implemented a restructuring plan to address working capital requirements, reduce cash burn and achieve operational goals over the next 12 months," said ASPU CEO Michael Mathews.
- "We are encouraged by the results we are achieving thus far and concluded that financing with the equity distribution agreement is not needed at this time," he added.
- The restructuring plan is expected to result in cost cuts of $4.4M in Q2 2023 and $4.9M in Q3 and Q4 2023.
- As part of the plan, ASPU reeled in marketing ad spend to a maintenance level of $150K per quarter. This is expected to result in $3.6M savings in Q2 2023 and $3.8M in each of Q3 and Q4 2023.
- ASPU also eliminated ~70 positions mostly within G&A functions. This is expected to translate into $750K additional savings in Q2 2023 and $1.1M in each of Q3 and Q4 2023.
For further details see:
Aspen Group scraps $3M equity distribution deal