Legacy Education Alliance Announces Proposed Relationship with Cris Carter and Progress on Strategic Initiatives
CAPE CORAL, Fla.— 26 Apr 22 — Legacy Education Alliance, Inc. (OTCQB: LEAI), has announced its intent to form a marketing partnership with Cris Carter, Pro Football Hall of Fame 2013, and its intent to progress on strategic initiatives including the spin off of the operating business of Legacy Education, previously approved by shareholders, and the structuring of a planned convertible bridge financing to a Nasdaq uplisting.
Barry Kostiner, Chairman and CEO of Legacy Education, remarked “we are delighted to announce our planned marketing partnership with Cris Carter and Family Office Experiences to re-build Legacy Education. Hearing Cris speak at the FOE Dubai conference at the beginning of April, including his personal journey and vision, was one of the most inspiring experiences in my career. His passion and personal story, together with his brother, Jeff Davis’ expertise in business operations, we believe is the future of Legacy Education, bringing us beyond entrepreneurial education to using our live event and mentoring operations to give underserved youth a path to financial success and achievement of life goals.”
Cris Carter commented, “As I have entered into the business phase of my career, I have been offered several opportunities to profit from my experience and reputation. My personal desire is to give back to youth. We have created Apex Sports as an education platform to reach youth who desire guidance on a sports career path. By working with Legacy Education, we are seeking to inspire young people on the importance of going beyond sports to focus on basic education and achieve the solid foundation needed to facilitate a career and family stability. Even the rare students who do succeed in sports need to have the culture and support system to acquire skills that allow them to succeed in life after their sports career reaches its natural conclusion. I look forward to working with Legacy Education and our team to partner with non-profit organizations, and bring hope to those who have lost hope, and a path to success for those who are struggling.”
Barry Kostiner continued, “Under the leadership of Andrew McDonald, Tim Chaffin and his daughter Whitney Chaffin, Legacy Education is seeking to restructure and rebuild the real estate and trading education business previously used to serve the Rich Dad, Poor Dad brand. We believe that Legacy Education, with over $800 mm in revenue previously associated with Robert Kiyosaki and real estate education, can be the engine to continue to serve the market seeking entrepreneurial education and mentoring, while leveraging its infrastructure and experience to deliver on inspiring live events and mentoring for youth in underserved communities. In restructuring Legacy Education, we are cleaning the balance sheet to facilitate a planned Nasdaq uplisting, the planned acquisition of the Coopersmith online degree business and relationships with new investors needed to build the platform in service of Cris Carter’s vision and our updated business plan.”
Legacy Education has released a presentation explaining its planned partnership with Cris Carter, as well as additional details on the strategic vision and implementation.
LEAI Convertible Bridge to Nasdaq Uplisting Terms:
Legacy Education is seeking to raise capital through a convertible bridge financing towards a planned Nasdaq uplisting, with the following currently-proposed terms:
|●||Up to $5 mm convertible note at a 20% discount to $15 mm Nasdaq offering|
|●||Original Issue Discount (OID): 10%|
|●||Interest Rate: 6%|
|●||100% warrant coverage (CASH exercise), 25% premium to Nasdaq listing|
|●||Maturity: 12 months (required timeframe for Nasdaq offering)|
|●||Will require conversion of all debentures prior to Nasdaq uplisting|
|●||Option to extend maturity (e.g. delay Nasdaq uplisting) 6 months for additional 10% payment|
Structure facilitates hedging to de-risk investment:
|●||The conversion shares will be included in a secondary registration statement that would go effective within 60 days after the Nasdaq uplist offering. This is so that there is no selling pressure to interfere with having a successful uplist offering.|
|●||The shares will be issued at a 20% discount to the VWAP for the 10 trading days after their registration is effective.|
|●||The investors in the convertible note will not be restricted from trading any time after the Nasdaq IPO (e.g., they can short stock prior to getting registered shares, as well as trade actively during the VWAP period), subject to applicable law.|
|1.||Legacy Presentation: Cris Carter Partnership and Nasdaq Uplist Plan|
|2.||iHeart Podcast: https://710wor.iheart.com/ari-zoldan/|
|3.||Nasdaq Article: https://www.nasdaq.com/articles/reits-vs.-direct-real-estate-holdings%3A-should-family-offices-take-their-portfolios-public|
|4.||LinkedIn Posts: https://www.linkedin.com/in/barry-kostiner/recent-activity/shares/|
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About Legacy Education Alliance Inc.
Legacy Education Alliance, Inc is a marketer of practical, high-quality, and value-based educational training on the topics of personal finance, entrepreneurship, and real estate strategies and techniques. Legacy Education Alliance was founded in 1996 and has cumulatively served more than two million students from more than 150 countries and territories over the course of its operating history.
Certain statements made in this press release may involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential,” “would” or “continue” or the negative of these terms or other similar expressions. All statements other than statements of historical facts contained in this press release are forward-looking statements. Any forward-looking statements are based on current expectations that involve numerous risks and uncertainties. Our plans and objectives are based, in part, on assumptions and judgments with respect to, among other things, the results projected from the introduction and roll-out of new brands, products and services, expansion into new geographic markets, and combinations with third parties; our ability to satisfy Nasdaq listing requirements and otherwise uplist to Nasdaq; the successful acquisition and operation of complementary and new business lines; the success of entering into, and the success of, joint ventures and other collaborations with third parties, including entering into and growing a proposed marketing partnership with Cris Carter on terms and conditions satisfactory to our company; our success in raising capital for operations and to implement our business plan, strategy and initiatives; the development of ecommerce capabilities; projections of international growth; projected profitability; our ability to address or manage corruption concerns in certain locations in which we operate; our ability to address and manage cyber-security risks; our ability to protect our intellectual property, on which our business is substantially dependent; our ability to manage our relationships with credit card processors; our expectations regarding the impact of general economic conditions on our business; and the effects of the COVID-19 pandemic on the global and national economies and on our business operations and financial results. Our assumptions used for the purposes of the forward-looking statements represent estimates of future events and are subject to uncertainty as to possible changes in economic, legislative, industry, and other circumstances, including the development, acceptance and sales of our products and our ability to raise additional funding sufficient to implement our strategy. Such forward-looking statements involve assumptions, known and unknown risks, uncertainties, and other important factors that could cause the actual results, performance or our achievements, or industry results, to differ materially from historical results, any future results, or performance or achievements expressed or implied by such forward-looking statements. There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements contained in this press release. Important factors that could cause our actual results to differ materially from those expressed as forward-looking statements are set forth in certain of our filings with the Securities and Exchange Commission. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained in this press release, whether as a result of any new information, future events, changed circumstances or otherwise.