OTTAWA, May 18, 2019 (GLOBE NEWSWIRE) -- betterU Education Corp. (TSX VENTURE:BTRU) (FRANKFURT:5OGA), (the "Company" or "betterU") is pleased to announce the closing of the first tranche of a non-brokered private placement to raise up to a maximum of $500,000 through the issuance of 10,000,000 units at a price of $0.05 per unit. Each unit consists of a Common share and a ½ warrant (“Unit”). Each full warrant can be exercised for two years at a price of $0.15. A finder’s fee of 7% in cash and 7% in warrants and can be exercised for 12 months at a price of $0.25 may be paid on a portion of the private placement (“Finders’ Warrants”).
On the closing of the first tranche 6,360,000 Units were issued for aggregate gross proceeds of $318,000. A finders’ fee of $5,670 was paid by the Company and 113,400 Finders’ Warrants were issued. Additional tranches are expected to close this month.
The proceeds will be used for working capital purposes supporting the Company’s efforts towards revenue generation and closing of larger investments currently in the pipeline.
This financing and all securities proposed to be issued thereunder are subject to the acceptance of the TSX Venture Exchange. All securities issued under the private placement are subject to a four month and one-day hold period from date of issuance.
The Company is also pleased to report as part of ongoing efforts to reduce the Company’s debt and operational liabilities that its board of directors has approved the settlement of $125,000 of debt through the issuance of common shares of the Company (the "Debt Settlement"). Pursuant to the Debt Settlement, the Company would issue up to 2,500,000 Units at a deemed price of $0.05 per Unit to certain creditors of the Company (the “Creditors”). None of the Creditors are Non-Arm’s Length Parties to the Company. The Company will continue to make efforts in reducing its debt and operating liabilities to strengthen it’s cashflow position and expects to close additional Debt Settlement arrangements this month as well.
The issuance of the Units to the Creditors is subject to the approval of the TSX Venture Exchange. All securities issued will be subject to a four month hold period which will expire on the date that is four months and one day from the date of issue.
About betterU
betterU, an online education technology company, aims to provide access to quality education from around the world in order to foster growth and opportunity to those who want to better their lives. The Company plans to bridge the prevailing gap in the education and job industry and enhance the lives of its prospective learners by developing an integrated ecosystem. betterU’s offerings can be categorized into four broad functions: to compliment school programs with flexible KG-12 programs preparing children for their next stage of education, to foster an exceptional educational environment by providing befitting skills that lead to a better career, to bridge the gap between one’s existing education and prospective job requirement by training them and lastly, to connect the end user to various job opportunities.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
By their nature, forward-looking statements include assumptions and are subject to inherent risks and uncertainties that could cause actual future results, conditions, actions or events to differ materially from those in the forward-looking statements. If and when forward-looking statements are set out in this news release, BetterU will also set out the material risk factors or assumptions used to develop the forward-looking statements. Except as expressly required by applicable securities law, the Company assumes no obligation to update or revise any forward-looking statements. The future outcomes that relate to forward-looking statements may be influenced by many factors, including, but not limited to: industry cyclicality; the ability to secure third party agreements; successful integration of betterU’s system with third party technology; competition; reduction in demand for products; collection from customers; relationships with suppliers; product liability; intellectual property; reliance on key personnel; environmental; interest rates; uninsured and underinsured losses; operating hazards; risks of future legal proceedings; income tax matters; credit facilities; availability and terms of financing; distribution of securities; restrictions on potential growth; effect of market interest rates on price of securities; and potential dilution.
CONTACT INFORMATION
Brad Loiselle
President & CEO
1-613-695-4100
Email: ir@betteru.ca