iLearningEngines Secures $20 Million Incremental Funding To Help Execute Growth Plans
July 03 2024 - 8:00AM
iLearningEngines, Inc. (NASDAQ: AILE) (“iLearningEngines” or “ILE”)
a leader in AI-powered learning and work automation, announced
today that it has entered into a First Amendment to Loan and
Security Agreement (the “Amendment”) with the involved financial
institutions (the “Lenders”) and East West Bank, as administrative
agent and collateral agent for the Lenders, which amends the
existing Loan and Security Agreement, dated April 17, 2024, between
iLearningEngines’ wholly owned subsidiary, iLearningEngines
Holdings, Inc. (“iLE Holdings”), the Lenders and East West Bank
(the “Loan Agreement”). The purpose of the Amendment is to, among
other things, secure an incremental $20 million in funding.
On April 17, 2024, iLE Holdings entered into the Loan Agreement
which included a new senior secured revolving credit facility in a
principal amount of up to $40 million (the “Revolving Facility”),
which was fully drawn at the time of closing. The Revolving
Facility also provided for an uncommitted accordion allowing iLE
Holdings to increase the revolving commitments by an additional
principal amount of $20 million at iLE Holdings’ option and upon
Lender’s approval. iLearningEngines is announcing today that the
full $20 million accordion was drawn on June 28, 2024, and that
Valley National Bank was added to the syndicate along with East
West Bank. The Revolving Facility has a term of 3 years and
outstanding loans under the Revolving Facility bear interest at a
rate equal to the Adjusted Term SOFR rate (with an interest period
of 1 or 3 months at iLE Holdings’ option) plus 3.50% per annum,
subject to an Adjusted Term SOFR floor of 4.00%.
“We see a tremendous opportunity to increase adoption of the
iLearningEngines platform, both through organic growth and,
potentially, strategic transaction, and this $20 million in
additional funding increases our ability to execute all aspects of
our growth plans,” said Harish Chidambaran, Chief Executive Officer
of iLearningEngines. “We are also pleased to have expanded our
banking relationship to now include Valley Bank in addition to East
West Bank.”
“We believe the adoption of AI is one of the most powerful
technology trends happening today, and we are pleased to help fund
the growth of an AI leader like iLearningEngines,” said Jack Grady,
Senior Vice President of East West Bank.
About iLearningEngines
iLearningEngines (Nasdaq: AILE) is a leading Applied AI platform
for learning and work automation. iLearningEngines enables
Enterprises to rapidly productize and deploy a wide range of AI
applications and use cases (AI Engines) at scale.
iLearningEngines is powered by proprietary vertical specific AI
models and data with a flexible No Code AI canvas to drive rapid
out-of-the-box deployment while offering low latency and high
levels of data security and compliance.
Serving over 1,000 enterprise end customers, iLearningEngines is
deployed globally into some of the most demanding vertical markets
including Healthcare, Education, Insurance, Retail, Energy,
Manufacturing and Public Sector to achieve mission critical
outcomes.
For more information about iLearningEngines, please visit:
www.ilearningengines.com.
Forward-Looking Statements
Certain statements included in this press release that are not
historical facts are forward-looking statements for purposes of the
safe harbor provisions under the United States Private Securities
Litigation Reform Act of 1995 with respect to the Business
Combination. Forward looking statements generally are accompanied
by words such as “believe,” “may,” “will, “estimate,” “continue,”
“anticipate,” “intend,” expect,” “should,” “would,” “plan,”
“predict,” “potential,” “seem,” “seek,” “future,” “outlook,” the
negative forms of these words and similar expressions that predict
or indicate future events or trends or that are not statements of
historical matters. These forward-looking statements include, but
are not limited to, statements regarding iLearningEngines’ growth
plans, the adoption of AI, iLearningEngines’ business outlook,
including its growth opportunity and position in the industry, and
the promise of iLearningEngines’ technology. These statements are
based on various assumptions, whether or not identified in this
press release, and on the current expectations of the
iLearningEngines’ management and are not predictions of actual
performance. These forward-looking statements are provided for
illustrative purposes only and are not intended to serve as and
must not be relied on by an investor as a guarantee, an assurance,
a prediction, or a definitive statement of fact or probability.
Actual events and circumstances are difficult or impossible to
predict and will differ from assumptions this press release relies
on. Many actual events and circumstances are beyond the control of
iLearningEngines. These forward-looking statements are subject to a
number of risks and uncertainties, including changes in domestic
and foreign business, market, financial, political, and legal
conditions; iLearningEngines’ failure to realize the anticipated
benefits of the Business Combination; risks related to the rollout
of iLearningEngines’ business and the timing of expected business
milestones; iLearningEngines’ dependence on a limited number of
customers and partners; iLearningEngines’ ability to obtain
sufficient financing to pay its expenses incurred in connection
with the closing of the business combination; the ability of
iLearningEngines to issue equity or equity-linked securities or
obtain debt financing in the future; risks related to
iLearningEngines’ need for substantial additional financing to
implement its operating plans, which financing it may be unable to
obtain, or unable to obtain on acceptable terms; iLearningEngines’
ability to maintain the listing of its securities on Nasdaq or
another national securities exchange; the risk that the Business
Combination disrupts current plans and operations of
iLearningEngines; the effects of competition on iLearningEngines
future business and the ability of iLearningEngines to grow and
manage growth profitably, maintain relationships with customers and
suppliers and retain its management and key employees; risks
related to political and macroeconomic uncertainty; the outcome of
any legal proceedings that may be instituted against
iLearningEngines or any of their respective directors or officers,
including litigation related to the Business Combination; the
impact of the global COVID-19 pandemic on any of the foregoing
risks; and those factors discussed in iLearningEngines’ filings
with the Securities and Exchange Commission under the heading “Risk
Factors.” If any of these risks materialize or our assumptions
prove incorrect, actual results could differ materially from the
results implied by these forward-looking statements. There may be
additional risks that iLearningEngines does not presently know, or
that iLearningEngines does not currently believe are immaterial,
that could also cause actual results to differ from those contained
in the forward-looking statements. In addition, forward-looking
statements reflect iLearningEngines’ expectations, plans, or
forecasts of future events and views as of the date of this
communication. iLearningEngines anticipate that subsequent events
and developments will cause iLearningEngines’ assessments to
change. However, while iLearningEngines may elect to update these
forward-looking statements at some point in the future,
iLearningEngines specifically disclaim any obligation to do so.
These forward-looking statements should not be relied upon as
representing iLearningEngines’ assessments as of any date
subsequent to the date of this communication. Accordingly, undue
reliance should not be placed upon the forward-looking
statements.
IR & Press Contacts:Investor Contact:Kevin
Hunt, ICR Inc. iLearningEnginesIR@icrinc.com
Press Contact:Dan Brennan, ICR Inc.iLearningPR@icrinc.com
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