On January 31, 2017, Creative Learning Corporation announced that it is in discussions to obtain supplemental funding to provide additional working capital to assist the Company going forward. The Company expressed its view that it is in the best interests of the Company to obtain this additional funding to expand its sales efforts and to upgrade the capacity of its franchisee base to profitably advance its efforts to sell and service customers of CLC’s award-winning children’s education programs. In addition, the Company expressed its view that the amount of funding under discussion would be sufficient to benefit the Company’s operations. Further, the Company stated that the funding source has made clear that it would not be interested in providing funding in the event that the current board is replaced.