betterU Education Corporation provides update on funding
OTTAWA, Jan. 17, 2019 (GLOBE NEWSWIRE) — betterU Education Corp. (TSX VENTURE: BTRU, Frankfurt: 5OGA) (the “Company”) would like to provide an update on its funding activities.
betterU is pleased to announce it has completed a $1,250,000 equity investment by HT Overseas Pte. Ltd., a wholly owned subsidiary of HT Media Limited, (“HT”) for the purchase of 2,976,190 common shares of the Corporation at $0.42 per share (the “Private Placement”) with a hold period expiring on May 17, 2019. As previously announced on December 21, 2017, HT’s $10 million investment is provided to betterU in eight (8) tranches over two years, this being the 3rd tranche with the full investment immediately being paid to HT’s Media Groups by betterU to support betterU’s mass marketing efforts across India. Over the last year, HT’s marketing investment in betterU has resulted in an increase of partnerships and the content required to support our efforts in building betterU’s platform: Education for All. In 2016, betterU had only 235 courses available on its platform, by 2017 betterU reached close to 12,000 and by the end of 2018, betterU surpassed over 52,000 programs. The efforts of our team, along with the media investment from HT, has helped betterU create a larger platform of global educators, tutors, and service providers who all focused on supporting India’s education needs across many subjects and industries. Content acquisition has been part of the betterU’s core focus as it also supports technology being developed by betterU to help solve India’s mass skilling challenges across industries.
betterU, over the last few months, has been working on multiple funding opportunities motivated by the ongoing delays from the $100M investment from TUC Co, Ltd. (“TUC”). These delays have not been explained in detail to betterU because according to GDS Holdings Ltd. (“GDS”), they are under confidentiality agreements with their investment partners. betterU has received over 400 emails over the last year with discussions not only with TUC and GDS, but also with other organizations that are also part of TUC’s investment portfolio. betterU has been in active discussions with the CEOs for multiple groups in Canada and the USA with whom TUC and GDS have also promised funding. Despite the ongoing support and assurances made by TUC and GDS however, with these ongoing delays, it is not sustainable for betterU to rely solely on TUC or GDS, so betterU has had no choice but to seek other investment opportunities as outlined further below. betterU’s agreement with TUC and GDS will remain active and when and if GDS funds are released they will be in accordance with the terms of the agreement executed by TUC and betterU on February 1, 2018.
The Term Sheet with AIP Asset Management Inc., AIP Inc. (“AIP”) for financing of $2.5 Million previously announced October 15, 2018, is currently under review by betterU. AIP requires as a condition to closing the financing that a subordination agreement (“SA”) be executed by the creditors of betterU. After betterU’s creditors reviewed the SA provided by AIP, they felt it was punitive to their rights as creditors and decided not to sign it. betterU has been in discussions with AIP to determine alternative solutions and while AIP is willing to provide betterU with more time, at a cost, they still require that betterU’s creditors execute on the SA. A further update to the market will be forthcoming as this materializes further.
Additionally, in early October 2018, betterU was invited to present to dozens of investors organized by a Montreal investor relations firm known to betterU, Mi3. During these events, betterU was introduced to the CEO of Quantiium Capital Management Corporation (“QCMC”) an alternative funding group located in Montreal QC who expressed interest in betterU. Over subsequent months, betterU met with their leadership teams in Montreal, Toronto and at betterU’s office in Ottawa. Following QCMC’s due diligence process, a Letter of Intent was offered and executed by both parties on December 5, 2018 which supports an investment of 5 Million Euro (approximately CND$7.5M) through a credit facility backed by QCMC. The agreements are currently under development with QCMC and the credit facility is expected to be issued in favour of betterU this month. Further details will be provided to the market as the agreements and timelines materialize. All investments are subject to board of director and TSXV approvals.
betterU wants to emphasise that they have no control over the timelines of these investments and are providing an update to the market with the information they are provided with. An update on the betterU’s advancements in revenue, technology and growth objectives will be made available by next week.
betterU, a global education to employment platform, aims to provide access to quality education from around the world 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 perspective learners by developing an integrated education-to-employment ecosystem. betterU’s offerings can be categorized into several broad functions: to compliment school programs with flexible KG-12 programs preparing children for next stage of education, to provide access to global educational opportunities from leading educators, 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 perspective 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.
This press release may contain forward-looking statements and information, which may involve risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors that might cause a difference include, but are not limited to, competitive developments, risks associated with betterU’s growth, the state of the financial markets, regulatory risks and other factors. There can be no assurance or guarantees that any statements of forward-looking information contained in this release will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral statements containing forward-looking information are based on the estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. Unless otherwise required by applicable securities laws, betterU disclaims any intention or obligation to update or revise any forward-looking statements, whether because of new information, future events or otherwise. Readers should not place undue reliance on any statements of forward-looking information that speak only as of the date of this release. Further information on betterU’s public filings, including their most recent audited consolidated financial statements, are available at www.sedar.com.
For further information, please visit: https://ir.betteru.ca/investor-overview/press-releases/
On behalf of the Board of Directors,
better Education Corp.
Brad Loiselle, CEO
For further information:
1-613-695-4100 Ext. 233