Aspen Group, Inc. Amends and Extends Debt Agreement

Rhea-AI Summary

Aspen Group (OTCQB: ASPU) entered a Seventh Amendment to its 15% Senior Secured Debentures with JGB Management. The amendment extends the maturity date from May 13, 2026 to May 13, 2027 and reduces quarterly principal amortization payments from $500,000 to $350,000 starting July 31, 2026.

The next principal payment is due July 31, 2026. According to Aspen Group, the changes are intended to increase financial flexibility, support marketing investments, drive university enrollment growth, sustain operating cash flow, and strengthen the balance sheet.

AI-generated analysis. Not financial advice.

Positive

• Debt maturity extended by one year to May 13, 2027
• Quarterly principal payments reduced from $500,000 to $350,000 from July 31, 2026
• Amendment intended to support marketing and enrollment growth investments
• Company targets sustaining operating cash flow and strengthening balance sheet

Negative

• 15% Senior Secured Debentures remain outstanding for an additional year
• Company continues scheduled principal payment obligations, next due July 31, 2026

Maturity Date Extended by One Year to May 2027
Quarterly Principal Amortization Payment Reduced

PHOENIX, May 11, 2026 (GLOBE NEWSWIRE) -- Aspen Group, Inc. ("AGI" or the “Company”) (OTCQB: ASPU), an education technology holding company and the parent company of Aspen University, Inc. (“AU”) and United States University, Inc. (“USU”), announced today it entered into a Seventh Amendment to its 15% Senior Secured Debentures with JGB Management Inc. (“JGB”).

Under the amendment, among other things, the maturity date of the debentures is extended by one year, from May 13, 2026 to May 13, 2027. In addition, beginning July 31, 2026, the quarterly principal amortization payments are reduced from $500,000 to $350,000. The next quarterly principal payment is due on July 31, 2026.

The amendment is intended to provide AGI with additional financial flexibility as the Company continues to focus on growing university enrollments, sustaining operating cash flow, and strengthening its balance sheet. The lower quarterly amortization payments are expected to support increased investment in marketing initiatives and other strategic growth priorities.

Matthew LaVay, CEO of AGI, stated, “We appreciate the continued support and partnership from JGB. By extending the maturity of the debentures and lowering our quarterly amortization payments, this amendment increases our capacity to invest in marketing and other enrollment-driving initiatives within our post-licensure degree programs.”

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including the future growth of enrollment through our increased marketing and our liquidity. The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “is likely,” “will,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Important factors that could cause actual results to differ from those in the forward-looking statements include the continued demand of nursing students for the new programs, student attrition, national and local economic factors including the impact of international conflicts including the war in the Middle East and tariffs on the economy and affordability in general, competition from nursing schools in local markets, the competitive impact from the trend of major non-profit universities using online education and consolidation among our competitors, the impact, if any from any future U.S. government shutdowns, and our ability to refinance our outstanding convertible debentures. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

About Aspen Group, Inc.

Aspen Group, Inc. is an education technology holding company that leverages its infrastructure and expertise to allow its two universities, Aspen University and United States University, to deliver on the vision of making college affordable again. For more information, visit www.aspu.com.

Contact Information:

Hayden IR

Kimberly Rogers

(385) 831-7337

Kim@HaydenIR.com

FAQ

What debt amendment did Aspen Group (OTCQB: ASPU) announce on May 11, 2026?

Aspen Group announced a Seventh Amendment to its 15% Senior Secured Debentures with JGB Management. According to Aspen Group, the amendment extends the maturity date and adjusts quarterly principal amortization payments to improve financial flexibility and support strategic growth priorities.

How does Aspen Group's May 2026 debt amendment change ASPU's debenture maturity date?

The amendment extends Aspen Group's debenture maturity date by one year, from May 13, 2026 to May 13, 2027. According to Aspen Group, this extension is designed to provide additional time and flexibility while the company focuses on enrollment growth and cash flow sustainability.

How were Aspen Group's quarterly principal payments changed in the May 2026 amendment for ASPU?

Quarterly principal amortization payments will be reduced from $500,000 to $350,000 beginning July 31, 2026. According to Aspen Group, the lower payments are expected to free cash for marketing initiatives and other strategic growth investments in its university programs.

When is the next principal payment due under Aspen Group's amended debentures (ASPU)?

The next quarterly principal payment under Aspen Group's amended debentures is due on July 31, 2026. According to Aspen Group, reduced amortization from that date should ease near-term cash requirements and support continued focus on enrollment growth and operating cash flow.

How might Aspen Group's debt amendment impact marketing and enrollment growth for ASPU?

The amendment is expected to increase capacity for marketing and enrollment-driving investments in post-licensure degree programs. According to Aspen Group, lower quarterly payments and extended maturity should support initiatives aimed at growing university enrollments and strengthening the balance sheet.

Why did Aspen Group amend its 15% Senior Secured Debentures with JGB for ASPU?

Aspen Group amended the debentures to gain more financial flexibility and support strategic growth. According to Aspen Group, the extended maturity and reduced quarterly principal obligations help sustain operating cash flow while funding marketing and enrollment initiatives at Aspen University and United States University.