Legacy Education Alliance, Inc.: debt financing — Legacy Education Alliance borrows $325,000 via 10% convertible debentures from affiliate of CEO

Legacy Education Alliance, Inc.

Borrowed $325,000 from ABCImpact I, LLC, with option for additional $2,684,500 under convertible debentures.
Debentures bear 10% annual interest, convertible at $0.05 per share, with 4.99% beneficial ownership limit.
Granted warrants to 27 employees and consultants for 31.25% of shares upon uplisting, including 19.90% to the lender.
CEO Barry Kostiner holds non-controlling interest in the lender, making it a related-party transaction.
Proceeds used for general corporate purposes and working capital; debentures mature 12 months from issuance or at liquidity event.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

Legacy Education Alliance, Inc. incurred convertible notes of $325,000 with ABCImpact I, LLC at 10% per annum maturing the earlier of 12 months from the issue date and the date of a Liquidity Event.

Instrument: convertible notes
Principal: $325,000
Counterparty: ABCImpact I, LLC
Rate: 10% per annum
Maturity: the earlier of 12 months from the issue date and the date of a Liquidity Event
Event: incurrence

Exact text from the filing

Between March 6, 2023 and March 17, 2023, Legacy Education Alliance, Inc. (the “Company”) borrowed an aggregate of $325,000 (collectively, the “Loan”) from ABCImpact I, LLC, a Delaware limited liability company (the “Lender”), evidenced by one or more 10% Convertible Debentures (the “Debentures”).

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Source: SEC EDGAR

accession 0001493152-23-008726

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