betterU Education Corp V.BTRU.H

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.

[Bingle]

So they're broke and need another 350k at 15% interest to stay afloat. They also released half a million shares warranted at 0.80 cents to the lender. How is this positive news ?

[Analyzerrrr]

If lender is ready to pay 80 cents per share, don’t u think its good one ? Lender knows something very well. They need money for progress and pending projects.  See what they said 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

[Teflon2Hype]

"If lender is ready to pay 80 cents per share, don’t u think its good one ?" The lender is not paying anything. Those warrants are freebies thrown on top of an effective 45% (air) loan.

[Ggallant2000]

Is english not your first language or can you just not read. They were given warrants which are options to buy stock at .80 per share over a 1 year period. Imterest on the loan is 15% where do you get 45? Open your eyes, or better yet, take a hike!

[Teflon2Hype]

"Is english not your first language or can you just not read. Imterest on the loan is 15% where do you get 45?" Math does not seem to be one of your strong points. Throwing flat fees on top of an interest bearing loan is a way to mask the fact that it is actually loan sharking. "The Company agrees to pay a $17,500 facility origination fee" $17,500 / $350,000 = 5% in 2