ISSUE OF WARRANTS
The Board of EdServ in its meeting held today in Chennai approved the issue of 2,27,273 equity warrants to Promoters of the company at a price of Rs. 88/- per warrant (Rs. 10/- each with a premium of Rs. 78/-).
Through the issue of Warrants to the promoters, EdServ will get around Rs.2 crores from the promoters over the next 18 months. The Promoters of EdServ, who currently hold 29% in the company, have agreed to subscribe to the warrants fully. The proceeds from the issue will be used to augment the funding of the on-going brand building and product promotion expenditure.
S. Giridharan, CEO, EdServ said, “We foresee fund requirements to augment the on-going brand promotions for the company’s products including for our recently launched EdCademy Off-Campus AE. We believe these products supporting the students’ academic performance in higher education segment when branded well will fuel the company’s growth substantially.”