Legacy Education Alliance, Inc. announced that it expects to receive $0.1 million in funding from ABCImpact I, LLC
January 20, 2023
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Legacy Education Alliance, Inc. announced a private placement of 10% convertible debentures for gross proceeds of $100,000 on January 20, 2023. The transaction will include participation from returning investor, ABCImpact I, LLC. Pursuant to the Debenture, the lender has the option to loan up to an additional $3,232,500 to the company.
The maturity date of the Debenture is the earlier of 12 months from the issue date and the date of a liquidity event, and is the date upon which the principal and interest shall be due and payable. The debenture bears interest at a fixed rate of 10% per annum. Any overdue accrued and unpaid interest shall entail a late fee at an interest rate equal to the lesser of 18% per annum or the maximum rate permitted by applicable law, which shall accrue daily from the date such interest is due through and including the date of actual payment in full.
The then outstanding and unpaid principal and interest under each debenture shall be converted into shares of company common stock and an equal number of common stock purchase warrants at the option of the Lender, at a conversion price per share of $0.05, subject to adjustment pursuant to the terms of the debenture. The company may not prepay the note without the prior written consent of the lender.
Legacy Education Alliance, Inc. is a provider of practical and value-based educational training on the topics of personal finance, entrepreneurship, real estate, and financial markets, including investment strategies and techniques. Its programs are offered through a variety of formats and channels, including free workshops, basic trainings, forums, telephone mentoring, one-on-one mentoring, coaching, and e-learning. The Company marketed its products and services under the brand Building Wealth with Legacy. The Companyâs students pay for their courses in full up-front or through payment agreements with independent third parties. The Company also provides one-on-one mentoring (two to four days in length, on site or remotely) and telephone mentoring (10 to 16 weekly one-on-one or one-on-many telephone sessions). Its training programs include basic training courses (live and online), elite level training courses (live and online), and individualized mentoring programs.