Rise Education Announces Receipt Of A Preliminary Non-Binding Proposal To Acquire Substantially All Assets Of The Company

RISE Education Cayman Ltd ("RISE" or the "Company") (NASDAQ: REDU), today announced that its board of directors (the "Board") has received a preliminary non-binding proposal letter (the "Proposal Letter"), dated October 18, 2021, from Ms. Lihong Wang, chairwoman of the Board and chief executive officer of the Company ("Ms. Wang"), to acquire (i) all of the equity interests in Rise (Tianjin) Education Information Consulting Co., Ltd ("WFOE") indirectly held by the Company, and Beijing Step Ahead Education Technology Development Co., Ltd., a variable interest entity controlled by the Company and WFOE ("VIE"), and (ii) all of the intellectual properties used in the conduct of business of WFOE and VIE and owned by Rise Education International Limited, a wholly-owned indirect subsidiary of the Company (the entities and assets described in (i) and (ii), representing substantially all assets of the Company, collectively the "Target"). The purchase price for the Target is calculated based on the total enterprise value of the Target which is effectively equivalent to existing liabilities and obligations of the Target (including prepaid tuition fees but excluding indebtedness incurred under that certain offshore loan facility agreement among the Company, CTBC Bank Co., Ltd. and other parties thereto (the "CTBC Facility")). The equity value of the Target and the purchase price that will actually be received by the Company in the transaction contemplated by the Proposal Letter (the "Proposed Transaction") will be zero. The Proposed Transaction will be subject to the consent by the lenders under the CTBC Facility.