China Education Group Holdings Limited announced that on 13 September 2021, the company and certain of its wholly-owned subsidiaries as borrowers entered into a loan agreement and related financing documents with International Finance Corporation (IFC), a member of the World Bank Group, as lender (the Lender) in relation to a long-term loan facility up to USD 150,000,000 (the Loan) and with a term of up to seven years. The rate of which interests is payable shall be the rate which is the sum of 1.45% per annum and LIBOR. The current 6-month USD LIBOR for reference is about 0.15% per annum. Pursuant to the Loan Agreement, so long as the Loan remains available or outstanding, the Controlling Shareholders shall collectively maintain at all times: directly or indirectly at least 50% of the beneficial ownership of the shares of the Company; and effective control of the company. Failure of the Controlling Shareholders to comply with the aforesaid obligations could constitute an event of default under the Loan Agreement. In addition, it could also constitute an event of default should there be a change of control of the Company or any of its relevant subsidiaries or consolidated affiliated entities, to the extent (amongst other things) any person other than the Controlling Shareholders obtains effective control (including such person having obtained directly or indirectly ownership of 50% or more of the voting shares or equity in such entities) of any of them. If an event of default under the Loan Agreement occurs and is continuing, the Lender may, by notice to the Borrowers, require the Borrowers to immediately repay the Loan (or such part of the Loan) and any other payments pursuant to the Loan Agreement. As at the date hereof, the Controlling Shareholders collectively and indirectly owns approximately 64.90% of the total issued shares of the company.