betterU Education Corp V.BTRU

betterU Announces Amendment to Loan Agreement

[Acelove]

OTTAWA, May 25, 2018 (GLOBE NEWSWIRE) -- betterU Education Corp. (TSX VENTURE:BTRU) (Frankfurt:5OG) (the “Company”) announces it has negotiated and will be closing today an amendment to the loan agreement dated October 4, 2017 as amended November 17, 2017 with Runway Finance Group Inc. (the “Lender”), to support operations during the completion process of the $100M funding timelines, pursuant to which:

1. The Loan Agreement is to add an additional credit advance of $350,000, under a non-revolving term facility (the “Principal”).
    
2. The Company agrees to pay to the Lender interest calculated on the Principal at an annual rate of 15%.
    
3. The Company agrees to pay a $17,500 facility origination fee on the full amount of the Principal
    
4. The term of the initial loan is 2 years, with this amendment for the additional funding to be repaid in 60 days;
    
5. The CEO of betterU will act as a Guarantor for the loan.
    
6. As additional consideration for such advances, the Company has agreed to issue and additional 437,500 common share purchase warrants (the “Warrants”) to the Lender. The Warrants are exercisable within 1 year from repayment period at a price of $0.80 subject to the following:
   1. the Common Shares issuable pursuant to the Warrants are subject to a hold period which will expire 4-months and a day from May 25^th, 2018; and
       
   2. Approvals on the loan details have been provided by the Board of Directors and TSXV.