OpenLearning Limited (ASX:OLL) Converts Debt to Equity with ECA
Debt-to-Equity Conversion
OpenLearning Limited (ASX:OLL) has agreed to convert its $2.12 million outstanding debt to equity with its largest shareholder, Education Centre of Australia (ECA). The conversion price is set at 1.74c per share, a 25% premium to the 30-day volume weighted average price (VWAP) on the ASX as of 6 May 2025. Following the conversion, ECA’s stake in OpenLearning will increase from 50.74% to 60.67%.
Future Funding
Post-conversion, $1 million will be available for drawdown in OpenLearning’s loan facility with ECA, although no funds have been drawn at this time. The agreement is subject to shareholder approval at an upcoming meeting.
Executive Comments
Rupesh Singh, Managing Director of ECA and Director of OpenLearning, stated, “I remain firmly committed to OpenLearning’s technological innovation and long-term vision. The Company has consistently increased its SaaS platform revenue, while simultaneously reducing costs and moving closer to break even. These achievements, combined with the vast potential in the global EdTech sector, give me strong confidence in the company’s future and its value to all stakeholders.”
OpenLearning Managing Director, Adam Brimo, added, “We are pleased to reaffirm our longstanding partnership with ECA. Their decision to convert debt into equity at a 25% premium above market price underscores their trust in our long-term strategy of OpenLearning and their belief in the opportunities in the Edtech sector.”
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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