TORONTO, ONTARIO–(Sept. 16, 2013) – TORONTO, ONTARIO–(Sept. 16, 2013) – Lingo Media Corporation (TSX VENTURE:LM)(OTCBB:LMDCF) (“Lingo Media” or the “Company”) an ESL industry acquisition company that is Changing the way the world learns English, is pleased to announce that it has negotiated a one year extension to the term of the $880,000 loan financing (the “Loan”) originally completed on September 8, 2010 with a one year term and extended for further one year terms on September 8, 2011 and September 8, 2012.
The new maturity date of the Loan is September 8, 2014 and continues to bear interest at a rate of 9% per annum, payable monthly in arrears and is secured by a charge over all of the Company’s assets and properties. Lingo Media may elect to prepay the Loan in whole or in part at any time at its sole discretion without penalty.
As additional consideration for the extension of the Loan by the lenders, the Company will issue to the Lenders an aggregate of 880,000 common shares of Lingo Media (the “Bonus Shares”). The Bonus Shares are subject to a four month statutory hold commencing from closing.
The insider participation consisted of three directors who advanced an aggregate of $445,000 and one executive officer who advanced $35,000. It is expected that the Loan will be repaid from the Company’s cash flow and any equity or debt financing completed by the Company during the new term of the Loan.
About Lingo Media (TSX-V: LM; OTC BB: LMDCF)
Lingo Media Corporation (www.lingomedia.com) is a diversified online and print-based education products and services company focused on English language learning (“ELL”) on an international scale through its four distinct business units: ELL Technologies; Parlo; Speak2Me; and Lingo Learning. ELL Technologies is a globally-established ELL multi-media and online training company marketed under the Q Group brand (www.elltechnologies.com). Parlo is a fee-based online ELL training and assessment service (www.parlo.com). Speak2Me is a free-to-consumer advertising-based online ELL service in China (www.speak2me.cn). Lingo Learning is a print-based publisher of ELL programs in China. Lingo Media has formed successful relationships with key government and industry organizations, establishing a strong presence in China’s education market of more than 300 million students. The Company continues to expand its ELL offerings in China and is extending its reach globally.