Skillful Craftsman Education Technology Limited ("the Company" or "Skillful Craftsman") (NASDAQ:EDTK), an education technology company providing interactive online learning services, today announced that it has entered into a non-binding term sheet for a proposed private placement of the Company's convertible note with a principal amount up to US$10 million.

The note under the proposed financing is designed to be an unsecured general obligation of the Company that will mature in five years following the issuance, bearing interest at the rate of 7% per annum which shall be payable on the maturity date. According to the proposed terms, at any time after the issuance and before the maturity date, the note is convertible, in whole or in part, into the ordinary shares of the Company (the "Ordinary Shares") at the option of the holder thereof. If the closing bid price of the Ordinary Shares as reported by Nasdaq exceeds the conversion price for at least five consecutive trading days, all of the outstanding balance of the note shall be automatically converted into Ordinary Shares. The conversion price is initially US$1.82 per Ordinary Share, subject to adjustment as set forth in the note. Unless previously converted, the Company shall repay the outstanding principal amount plus all accrued but unpaid interest on the maturity date. Readers are cautioned that the foregoing is a description of the proposed terms that are non-binding and subject to further negotiation by the parties.

There can be no assurance that a definitive agreement will be entered into or that the proposed transaction will be consummated.

Mr. Bill Fu, Co-CEO of Skillful Craftsman, commented, "Currently, we are actively negotiating with accredited investors and strive to sign the definitive agreement promptly. These potential investors have well recognized our vocational education expansion plans in Southeast Asia, which gives us great confidence in increasing our global presence. In addition, we are preparing to establish a Singapore subsidiary and discussing cooperation plans with local partners for providing trainings of professional skills that meet Singapore's qualifications and employment standards. As a senior financial vocational education expert, our Co-Chief Executive Officer and Director Mr. Bin Fu will take in charge of our business development in Southeast Asia. We believe the proposed financing will help propel our global presence in vocational education market and create more value for our shareholders."

This press release is neither an offer to sell nor a solicitation of an offer to buy the note or the underlying Ordinary Shares, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction. The note under the proposed financing have not been approved or disapproved by any regulatory authority.