OTTAWA, March 01, 2018 (GLOBE NEWSWIRE) -- betterU Education Corp. (TSX VENTURE:BTRU) (FRANKFURT:5OGA), (the "Company" or "betterU") announced today it has filed its financial results for the three months ended December 31, 2017. betterU is a Global Education to Employment platform for emerging markets. The Company aggregates education, educational services and employment services from quality institutions including universities, colleges, industry leaders and corporations from around the world and makes their programs available to students through the betterU platform. betterU has now over 12,000 programs available.
Highlights for the three months ended December 31, 2017 include:
- On October 11, 2017, the Company negotiated a loan agreement with an unrelated finance group for $300,000 at an annual interest rate of 15%. On November 23, 2017, the Company amended the loan agreement from $300,000 to $500,000 to add an additional $200,000 of available funds.
- On October 18, 2017 the Company announced its continuance from Business Corporation Act (British Columbia) to the Canadian Business Corporation Act. The special resolution necessary for the Continuance was approved at the annual and special meeting of shareholders held on September 14, 2017. The certificate of continuance is dated October 13, 2017.
- On December 7th 2017, the Company announced that it has received an interest free loan from Brad Loiselle, CEO of betterU for $215,000.
- On December 21st 2017 the Company announced that it had completed the Definitive Agreement with HT Overseas Pte. Ltd., a wholly-owned subsidiary of HT Media Limited (“HT”) for a media investment of up to $10 Million to be utilized over 2 years. The investment will provide betterU’s marketplace with increased visibility to millions of people across India.
- For the quarter, the Company reported revenues of $13,138, a net loss of $874,992. Note that while revenue is a key focus for the company, there are many other more important and value driving priorities as outlined in more detail within the MD&A.
Outlook:
- On January 24, 2018, February 2, 2018 and February 9, 2018, the Company closed three tranches of a private placement for aggregate proceeds of $998,789.86 through the issuance of 2,171,282 shares. The shares were issued at a deemed price of $0.46 per Unit. Each Unit consists of a Common share and a ½ common share purchase warrant (“Unit”). Each full warrant can be exercised for one year from the date of issue at a price of $0.60. Finders Fees of 12,479.25 was paid.
- Additionally, in the same period, 96,152 Units were issued at $0.52 per Unit for proceeds of $50,000. Units were comprised of 1 common share and ½ common share purchase Warrant. Each whole Warrant forming part of the unit is exercisable for one year from the date of issue at $0.65 per share. All shares issued as part of the private placement are subject to a 4-month hold period.
- On January 29th the Company announced a $1,250,000 equity investment by HT Overseas Pte. Ltd., a wholly owned subsidiary of HT Media Limited, (“HT”) for the purchase of 3,205,128 common shares of the Corporation at $0.39 per share (the “Private Placement”). The Private Placement and agreement with HT was announced as part of the HT Media Investment on December 21, 2017.
- On February 13, 2018 company announced that on February 1st, 2018 Treasure Union Limited (“TU”) and the Corporation executed a definitive agreement (the “Definitive Agreement”). The Definitive Agreement solidifies the terms and conditions required to complete the final details for the US$100M equity investment in betterU, previously announced on November 3rd, 2017, November 24th, 2017 and January 16th, 2018.
The Corporation would also like to provide an update on the timing for the delivery of funds and issuance of shares.
The Definitive Agreement includes several conditions precedent that are required to complete prior to closing. These include:
- TU to Establish Cayman Island Fund. TU is establishing the fund to support the investment into betterU (the “Fund”). TU has confirmed that the name of the Fund will be 'Cayman Island DGS Holdings'. They have also confirmed that the bankers of DGS Holdings will be HSBC. TU has further stated that it is expected that the process to establish the Fund will be completed by the end of February, early March 2018;
- TUCapital. TU indicated that the Fund will establish several additional subsidiary companies to support their investment targeted companies, including betterU. A new corporation (“TUCapital”) will be incorporated by the Fund and will hold the shares of betterU.
- Execution of Subscription Agreement. Once incorporated, TUCapital will execute a subscription agreement for 33,333,333 shares at US$3.00/share of betterU. Mr. Kenny Ho, currently the CFO of TU and the lead representative between the overseas investment group and betterU, will be appointed as the Chairman of TUCapital along with Mr. George Mueck as the President and CEO. Mr. Mueck is a Canadian businessman having worked closely with Mr.Ho for many years overseas as well as for several decades with Tony Keenan, betterU’s Chairman. Both individuals will have the authority to enter into the Subscription Agreement. This is expected to be completed by mid-March 2018;
Funds are expected to be available for issuing from the Fund to TUCapital between March 15th and the 31st and shortly afterwards to betterU. Only a date range for receipt of funds has been provided by TU to betterU. TU continues to manage the process between the Corporation and the Investor and does not have direct control over the funds until TUCapital has been established.
Company continues to be optimistic in the closing timeframe of this equity investment deal and continues to advance its efforts in the hiring of key global leaders, office expansion, infrastructure set-up and much more to support their growth projections post funding.
The consummation of any financing, as contemplated, remains subject to TSXV approval, and among other conditions of the TSXV’s approval, disinterested shareholder approval.
The company’s efforts over the last quarter have been mainly focused on the advancing the proposed US$100M funding and putting in place the necessary management, infrastructure and global plans to support planned revenue and market growth.
Additional information concerning the Company, including its audited consolidated financial statements and its Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) for the year ended March 31, 2017 can be found at www.sedar.com.
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. betterU does not assume any obligation to update any forward-looking statements except as required by law.
CONTACT INFORMATION
For further information, please visit
http://www.betteru.ca/investor-overview/
Jason Burke, CFO
Investor Relations 1-613-695-4100 ex 233
Email: ir@betteru.ca