OTTAWA, March 01, 2019 – betterU Education Corp. (TSX VENTURE:BTRU) (FRANKFURT:5OGA), (the “Company” or “betterU”) announced today it has filed its financial results for the nine months ended December 31, 2018. 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 20,000 programs available.
Highlights for the nine months ended December 31, 2018 include:
For the quarter, the Company reported revenues of $13,728, and a net loss of $867,214.
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 October 30, 2018, the Company provided an update on the investment progress.
According to a written update provided to betterU on October 28th, 2018 by Mr. Kenny Ho, CFO and Chairman of TUC Co. Ltd., (“TUC”) Mr. Ho indicated that he arrived in Tokyo, Japan to review the amendments on Wednesday, October 17th and that they completed the required documents on Friday, October 19th. Mr. Ho further indicated in writing to betterU that he has decided to remain in Tokyo until the funds have been released. Mr. Ho expects there will be no further delays yet has not provided betterU with definitive timelines for the release of funds. While Mr. Ho also indicated that he expects the funds to be released shortly, betterU is reluctant to commit to any dates having experienced many previous delays. “While we remain confident in this opportunity, the ongoing delays and missed timelines provided by TUC have proven to be difficult in managing market expectations. Our focus has been and continues to be on the development and growth of betterU,” said Brad Loiselle, President/CEO of betterU.
On Jan. 17, 2019 the 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.
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, 2018 can be found at www.sedar.com.
betterU, an online education technology company, aims to provide access to quality education from around the world in order to foster growth and opportunity to those who want to better their lives. The Company plans to bridge the prevailing gap in the education and job industry and enhance the lives of its prospective learners by developing an integrated ecosystem. betterU’s offerings can be categorized into four broad functions: to compliment school programs with flexible KG-12 programs preparing children for their next stage of education, to foster an exceptional educational environment by providing befitting skills that lead to a better career, to bridge the gap between one’s existing education and prospective job requirement by training them and lastly, to connect the end user to various job opportunities.
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.
Jason Burke, CFO