OTTAWA, Oct. 22, 2019 (GLOBE NEWSWIRE) -- betterU Education Corp. (TSX VENTURE:BTRU) (FRANKFURT:5OGA) (the "Company" or "betterU") announced today it has filed its financial results for the year ended March 31, 2019 and the three months ended June 30, 2019. betterU is a Global Education Marketplace 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 marketplace. betterU has now over 30,000 programs available.
| • | For the year ended March 31, 2019, the Company reported revenues of $44,930, and a net loss of $8,239,114. |
| | |
| • | For the quarter ended June 30, 2019, the Company reported revenues of $198, and a net loss of $751,337. |
| | |
| • | On Jan. 17, 2019 Company provided following updates on its funding activities: |
| | |
| | The Company 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. |
| | |
| | The Company, 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. 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. The Company wants to emphasize that they have no control over the timelines of these investments. |
| | |
| • | On Jan. 29, 2019, the Company announced that the successful acquisition of two corporate training contracts worth $26,812 with Larsen & Toubro (L&T) and Maharashtra State Electricity Transmission Company Limited (Mahatransco), both located in Mumbai, India. These two training programs come on the heels of betterU’s efforts to enhance their revenue focus and after the successful completion of other such training programs and custom development projects with groups such as Central Bank of India, Dena Bank, Confederation of Indian Industries (CII), Indian Oil Corporation Limited (IOCL), Blue Star, Dimension Data, Evry India and Acliv Technologies. On October 15th, 2018, betterU entered into two loan agreements totaling $613,000 and entered into an agreement with AIP Asset Management Inc., (AIP) for an investment of $2.5 million to support ongoing operations and growth until the TUC funding is received. AIP and betterU are working through all the definitive agreements in connection with this funding. |
| | |
| • | On March 4, 2019, the Company announced a partnership with Pearson, a digital learning company. To help working professionals update their skills and progress in their careers, Pearson India offers Pearson Professional Programs (PPP) in partnership with leading higher education institutions, faculty and content providers from around the world. This partnership will allow betterU to offer the courses by Pearson Professional Programs, on the education-to-employment platform. |
| | |
| • | On April 3, 2019, the Company announced that Mr. Gurmit Singh through his firm DAUWAU will work as a consultant in order to support the Company’s efforts in providing access to education across India. |
| | |
| • | On May 18, 2019, the Company announced the closing of the first tranche of a non-brokered private placement to raise up to a maximum of $500,000 through the issuance of 10,000,000 units at a price of $0.05 per unit. Each unit consists of a Common share and a ½ warrant (“Unit”). Each full warrant can be exercised for two years at a price of $0.15. A finder’s fee of 7% in cash and 7% in warrants and can be exercised for 12 months at a price of $0.25 may be paid on a portion of the private placement (“Finders’ Warrants”). |
| | |
| | On the closing of the first tranche 6,360,000 Units were issued for aggregate gross proceeds of $318,000. A finders’ fee of $5,670 was paid by the Company and 113,400 Finders’ Warrants were issued. Additional tranches are expected to close this month. |
| | |
| • | On May 28, 2019, the Company announced it has decided to halt the process for the equity investment with Treasure Union Ltd. (“TUC”) previously announced November 3, 2017, November 14, 2017, November 24, 2017, January 16, 2018, February 13, 2018, April 3, 2018, April 30, 2018, May 18, 2018, August 13, 2018, September 26, 2018, October 30, 2018, January 17, 2019 (the “Transaction”). The Company provided TUC notice of the termination of the agreement dated February 1, 2018 because of TUC’s inability to provide confirmed closing procedures and timelines. The notice of termination was delivered in writing to Mr. George Mueck, CEO of TUC and Mr. Kenny Ho, Chairman of GDS Holdings Ltd. (“GDS”) on May 26, 2019. |
| | |
| • | On June 12, 2019, the Company announced that National Skills Development Corporation (“NSDC”) and betterU have entered into a partnership to support the advancing of the government’s skilling initiative in India. |
| | |
| • | On June 13, 2019, the Company announced, that on the heels of a recent trip to India in May 2019, the Company had entered a working relationship with another corporate client; McDonald’s India. betterU is already engaged in the development of the first job specific skills program and upon successful completion and approval by McDonald’s India, opportunities will grow to support their national employee base. The scope of proposed work includes online course development, instructor-led training as well as blended online programs. |
| | |
| • | On July 3, 2019, the Company announced the closing of its non-brokered private placement to raise up to a maximum of $500,000 through the issuance of 10,000,000 units at a price of $0.05 per unit previously announced May 18 and June 4, 2019. The private placement was fully subscribed. |
| | |
| • | On July 25, 2019, the Company announced that its annual financial statements, the related management’s discussion and analysis and the related officer certifications for the financial year ended March 31, 2019 (collectively, the “Annual Filings”) will be delayed beyond the filing deadline of July 29, 2019. The Company has applied to the Ontario Securities Commission for a management cease trade order (the “MCTO”), however there is no guarantee that one will be issued. |
| | |
| | The reason for the default in filing the Annual Filings prior to the required deadline is that the Company’s Auditors, Welch LLP, resigned as auditors effective July 12, 2019. |
| | |
| • | On July 26, 2019, the Company announced as part of ongoing efforts to reduce the Company’s debt and operational liabilities that its board of directors has approved the settlement of $125,000 of debt through the issuance of common shares of the Company (the "Debt Settlement"). Pursuant to the Debt Settlement, the Company would issue up to 1,388,888 Units at a deemed price of $0.09 per Unit to certain creditors of the Company (the “Creditors”). None of the Creditors are Non-Arm’s Length Parties to the Company. |
| | |
| • | On August 2, 2019 the Company announced that after review of multiple proposals, the Company had approved and executed on an agreement with BDO Canada LLP as their new auditors to support not only the Company’s annual financial audit for the financial year ended March 31, 2019 but also ongoing advisory services and as a long-term partner. |
| | |
| • | On October 3, 2019 the Company announced they had requested an extension of the MCTO to October 18, 2019. Due to the timing of the Company’s appointment of BDO as auditors, the completion of the audit is still ongoing. The Company named BDO Canada as their auditor on August 2nd, 2019 after being informed by its previous auditors that they would not be in a position to complete the audit. betterU and BDO Canada continue to work collaboratively in completing the audit as soon as possible. |
| | |
| | The Corporation has been advised by the Ontario Securities Commission (“OSC”) that an extension of the MCTO will not be granted. A Full and Final Cease Trade Order (“FFCTO”) would be issued by the OSC. It is expected that the FFCTO will be lifted once all outstanding audited financial documents are filed. During the FFCTO, the general investing public will not be able to trade in the Company’s listed common shares. |
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, 2019 can be found at www.sedar.com.
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.