Current Report Filing (8-k)
27 Mars 2023 - 3:39PM
Edgar (US Regulatory)
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2023-03-24
2023-03-24
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UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported): March 24, 2023
LEGACY
EDUCATION ALLIANCE, INC.
(Exact
name of registrant as specified in its charter)
Nevada |
|
000-55790 |
|
39-2079974 |
(State
or other jurisdiction
of
incorporation) |
|
(Commission
File Number) |
|
(IRS
Employer
Identification
No.) |
1490
N.E. Pine Island Road, Suite 5D
Cape
Coral, Florida |
|
33909 |
(Address
of principal executive offices) |
|
(Zip
Code) |
Registrant’s
telephone number, including area code: (239) 542-0643
N/A
(Former
name or former address, if changed since last report.)
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under
any of the following provisions (see General Instruction A.2. below):
☐ |
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
|
☐ |
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a -12) |
|
|
☐ |
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d -2(b)) |
|
|
☐ |
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e -4(c)) |
Indicate
by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405
of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging
growth company ☐
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Securities
registered pursuant to Section 12(b) of the Act:
Title
of each class |
|
Trading
Symbol(s) |
|
Name
of each exchange on which registered |
N/A |
|
N/A |
|
N/A |
Item
3.02 Unregistered Sales of Equity Securities
On
March 24, 2023, Legacy Education Alliance, Inc. (the “Company”) issued 700,000 shares of its common stock to
an option holder upon the partial exercise of such option at an exercise price of $0.0001 per share. Such shares were issued in
reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended, as no general
solicitation was used in the offer and sale of such securities.
Item
7.01 Regulation FD Disclosure.
On
March 24, 2023, the Company released an updated Company presentation.
The
presentation, which is furnished as Exhibit 99.1 to this Current Report on Form 8-K, is incorporated herein by reference. The information
in this report (including Exhibit 99.1) is being furnished pursuant to Item 7.01 and shall not be deemed to be “filed” for
the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.
This report will not be deemed an admission as to the materiality of any information in this Item 7.01 (including Exhibit 99.1).
Item
8.01 Other Events
On
March 24, 2023, the Company issued a press release announcing that it entered into a business relationship with Virtual Readiness Counselor,
LLC, which does business as My Readiness Coach (www.myreadinesscoach.com, “MRC”), a provider of education counseling for
students seeking to gain admission to higher education institutions and skills for students to succeed on their academic and career paths.
With a focus on marketing to over 12,000 students in Pennsylvania, Legacy believes the relationship with MRC presents an opportunity
to support underprivileged communities and help students achieve their educational goals. In addition, the parties have agreed that upon
certain circumstances, upon the earlier of December 2024 and any Nasdaq uplisting of Legacy, Legacy would acquire MRC. In particular:
|
● |
Building
the engagement with students and investors, Legacy expects their parent company LEAI to uplift onto Nasdaq by Dec 24 |
|
● |
Until
the proposed uplisting of the Company, it will pay monthly fees to MRC for joint development of products and services beginning on
March 20, 2023. |
|
● |
During
such period, the Company will also pay to MRC an annual fee for students originated through Legacy Degree who use the My Readiness
Coach system. |
|
● |
MRC
will receive a credit for Legacy Degree students originated by MRC |
|
● |
Upon
the proposed uplisting and certain other events, the above revenues will flow to Legacy EdTech, a wholly-owned subsidiary of the
Company, and MRC will be a wholly owned subsidiary thereof, with the current equity holders of MRC receiving equity in the Company
and cash compensation to be determined. |
|
● |
MRC
will act as though it is a wholly owned subsidiary of Legacy EdTech commencing March 20, 2023, but with no cash distributions to
MRC holders until they receive and can liquidate their LEAI equity compensation as set forth above. |
|
● |
Equity
compensation of the Company to be paid to current MRC equity holders on the basis of achieving financial milestones within MRC on
a standalone basis. |
|
● |
By
the earlier of December 2024 or the proposed uplisting, the Company to agree to stock compensation to current holders of MRC equity
in exchange for the acquisition of MRC: |
|
● |
Minimum
of $1 million, and maximum of $5 million in Company stock, based upon a 5x trailing 12 months (pre-uplist) revenue (including sales
of Legacy Degree credits to MRC students, in addition to MRC existing products). |
|
● |
Any
such equity compensation subject to leakout provisions. |
|
● |
Post-uplisting:
certain executives of MRC would stay committed to the Company for a minimum of 5 years, upon negotiated terms. |
The
press release, which is filed as Exhibit 99.2 to this Current Report on Form 8-K, is incorporated herein by reference.
Item
9.01 Financial Statements and Exhibits.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
|
LEGACY
EDUCATION ALLIANCE, INC. |
|
|
|
Date:
March 27, 2023 |
By: |
/s/
Barry Kostiner |
|
Name:
|
Barry
Kostiner |
|
Title:
|
Chief
Executive Officer |
Legacy Education Alliance (CE) (USOTC:LEAI)
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Legacy Education Alliance (CE) (USOTC:LEAI)
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