REDU - REDU STOCK NEWS

RISE Education Cayman Ltd (NASDAQ: REDU) held an extraordinary general meeting on December 23, 2021, where shareholders approved a special resolution for the sale of equity interests in subsidiaries to Wuhan Xinsili Culture Development Co., Ltd. and Bain Capital Rise Education IV Cayman Limited. The transactions involve a payment of US$2.5 million and a transfer of liabilities to the buyer. The meeting also included a resolution to adjourn if necessary to gather additional proxy votes. A total of 76 million votes were cast in favor of the sale.

RISE Education Cayman Ltd (NASDAQ: REDU) has announced an extraordinary general meeting (EGM) for shareholders on December 23, 2021, at 4:00 pm Beijing time. The EGM will consider the sale of its wholly-owned subsidiaries, including Rise (Tianjin) Education Information Consulting Co., Ltd., to Wuhan Xinsili Culture Development Co., Ltd., and the sale of equity interests in Rise HK and Rise IP to Bain Capital Rise Education IV Cayman Limited for $2.5 million. Shareholders on record by December 8, 2021, can vote. Proxy materials will be available on the company's investor website.

RISE Education Cayman Ltd (NASDAQ: REDU) announced on December 1, 2021, that it has entered into definitive agreements for the sale of its subsidiary, Tianjin Education Information Consulting Co., Ltd., and its associated entities. The Buyer Consortium, composed of certain franchisees and senior management affiliates, will assume all liabilities and pay a nominal consideration. The sales include a settlement of over US$55 million in liabilities to lenders and a convertible loan of US$17 million from a major shareholder. Approval from shareholders is required, and closing of the sales is uncertain.

RISE Education Cayman Ltd (NASDAQ: REDU) announced the resignation of Ernst & Young Hua Ming LLP as its independent registered public accounting firm, effective November 19, 2021. EY's audit for the year ending December 31, 2020, did not contain adverse opinions, but issues arose during the audit for 2021 concerning new regulatory requirements from the Chinese government regarding not-for-profit registration for academic institutions. RISE has not provided EY with the necessary information to resolve these issues, leading to the inability to progress further with the audit.

RISE Education Cayman Ltd (NASDAQ: REDU) announced a preliminary non-binding proposal from CEO Lihong Wang to acquire all equity interests in its subsidiaries, including substantially all company assets, for a purchase price effectively valued at zero. This transaction is contingent on lender consent from the CTBC Facility. The Board is carefully evaluating the proposal with the assistance of financial advisors. There are no guarantees that the proposal will proceed, which introduces uncertainties regarding the future of the company.

RISE Education Cayman Ltd (NASDAQ: REDU) announced receipt of a Nasdaq Letter indicating non-compliance with the minimum bid price requirement of US$1.00 per share, based on trading data from August 13 to September 24, 2021. The company has a compliance period of 180 days, until March 28, 2022, to achieve a closing bid price of at least US$1.00 for ten consecutive business days to avoid potential delisting. RISE plans to monitor its stock price and explore options to regain compliance.

RISE Education Cayman Ltd (NASDAQ: REDU) announced the resignation of CFO Warren Wang due to personal reasons, effective August 31, 2021. Alex Wu will assume the role of acting CFO starting September 1, 2021, while Wang will assist in the transition until September 30, 2021. Wu brings extensive experience from Bain Capital Private Equity and PricewaterhouseCoopers Consulting. RISE focuses on cognitive and aptitude training for young children in China with various educational brands aimed at holistic child development.

On August 16, 2021, RISE Education Cayman Ltd (NASDAQ: REDU) announced that due to recent regulatory changes, it will not publish a quarterly earnings release at this time. The company noted that it will provide updates in the future as new developments arise. RISE Education specializes in cognitive and aptitude training for young children in China, utilizing a unique Online-Merge-Offline (OMO) teaching model. The company has five brands focused on different aspects of education, including RISE English and WhySTEAM, aiming to create a comprehensive aptitude education ecosystem.

RISE Education (NASDAQ: REDU) announced on July 26, 2021, significant new regulations from China's government impacting after-school tutoring for compulsory education. The regulations mandate that after-school tutoring institutions must register as non-profits and prohibits foreign ownership. The company anticipates a material adverse impact on its English language teaching business but plans to grow other aptitude products, namely WhySTEAM and Hiyeah, in compliance with the new regulations. RISE will work with authorities to adapt to these changes.