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EXHIBIT 99.1
TUESDAY SEPTEMBER 12, 6:27 PM EASTERN TIME
PRESS RELEASE
SOURCE: EduTrek International, Inc.
EDUTREK INTERNATIONAL ANNOUNCES CAPITAL INFUSION
ATLANTA, Sept. 12 /PRNewswire/ -- EduTrek International, Inc. (OTC BB: EDUT.OB),
operator of American InterContinental University ("AIU"), today announced that
it has received a capital infusion of $2.5 million from four investors,
including Steve Bostic, the Company's Chairman and Chief Executive Officer. The
Company sold to the investors an aggregate of 1,379,311 shares of the Company's
Class A Common Stock at $1.8125 per share (the closing price of the Common Stock
on September 8, 2000). Each investor also acquired the right to purchase, under
certain circumstances, beginning April 1, 2001, an additional 0.3333 share of
the Company's Class A Common Stock for each share that it purchased today at the
same purchase price, $1.8125 per share.
Mr. Bostic stated, "This equity infusion demonstrates our confidence in the
Company's future and the viability of our unique programs in technology and
e-business. The infusion, which relieves our short-term liquidity situation,
will allow senior management to focus on running our campus operations and
improving shareholder value."
In support of management's plans to restructure its bank indebtedness, the bank
has agreed to amend the Company's Credit Agreement to facilitate the $2.5
million capital infusion and to achieve other financial objectives. This
amendment includes: (1) extending the maturity of the Line "B" revolving line of
credit from September 30, 2000 to November 30, 2000, and (2) waiving events of
default with respect to three financial covenants for the period from July 31,
2000 to and including November 30, 2000. In consideration the Company has agreed
to pay an arrangement fee of $250,000, which the bank has agreed to waive if the
total obligations are paid in full, or refinanced, in a form acceptable to the
bank on or before November 30, 2000.
The Company previously announced that it was engaged in discussions with two
different groups with respect to either the merger of the Company with one of
the groups or an equity investment by the other group. The Company remains in
these discussions.
EduTrek, through the American InterContinental University ("AIU"), is a leading
provider of career-oriented and internationally-focused higher education
programs. AIU is accredited by the Commission on Colleges of the Southern
Association of Colleges and Schools ("SACS"). The Company operates campuses in
Atlanta (Buckhead and Dunwoody), Miami, London, Los Angeles, Washington, D.C.,
and Dubai, United Arab Emirates, with curricula focusing on information
technology, international business, multimedia communications, art and design.
Safe Harbor Statement -- Certain statements in this press release are
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995 and are thus prospective. These "forward-looking
statements" include statements relating to the Company's expected future
financial results and liquidity position and plans for addressing the Company's
liquidity difficulties, including the current merger negotiations. Such
forward-looking statements are subject to risks, uncertainties and other factors
that could cause actual results to differ materially from future results
expressed or implied by such forward-looking statements. Potential risks and
uncertainties include, but are not limited to, regulatory matters, economic
conditions, competition, risks inherent in negotiating change of control
transactions and other uncertainties detailed from time to time in the Company's
Securities and Exchange Commission filings.
SOURCE: EduTrek International, Inc.
