secwatch.observer — SEC 8-K summary
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Issuer:     Legacy Education Alliance, Inc. (—)
CIK:        0001561880
Form:       8-K
Filed at:   2023-03-23T23:59:59+00:00
Accession:  0001493152-23-008726
Event type: debt
Sentiment:  negative
Materiality: 0.80
Item codes: 1.01, 2.03, 8.01, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

Legacy Education Alliance borrows $325,000 via 10% convertible debentures from affiliate of CEO
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- 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.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1561880/000149315223008726/0001493152-23-008726-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1561880/000149315223008726/form8-k.htm
  HTML page:      https://secwatch.observer/filing/0001493152-23-008726

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