| Goods |
Under the proposed terms, the investor group led by Safanad Limited would own a majority stake in the new company. K12 would own an initial minority stake in the company greater than 25 percent and would contribute the International School of Berne; Capital Education; its interest in an existing Middle East joint venture currently operating with a Safanad affiliate; the United Kingdom businesses that K12 recently launched; the rights to market K12's new pre-kindergarten product, EmbarK12 outside the U.S.; and other select assets and licenses (the "K12 Contributed Assets"). In the aggregate, the K12 Contributed Assets were responsible for $20.8 million in revenue and had direct operating losses of approximately $3.0 million for K12's fiscal year ending June 30, 2013. The partners have executed a non-binding letter of intent and are working to complete definitive agreements in the coming weeks, at which time additional financial and operational details will be announced. |