Business
Learning Tree International Announces It Has Secured a $5 Million Financing Agreement in Conjunction with the Sale of Founder’s Majority Ownership
Learning Tree International Announces It Has Secured a $5 Million Financing Agreement in Conjunction with the Sale of Founder’s Majority Ownership.
About this update from Learning Tree International Inc
[{"type":"text","content":"\n \n Learning \n Tree International, Inc. (OTCQX: LTRE) announced today, one of its \n founders, Dr. David C. Collins, and his wife, Mrs. Mary C. Collins, have \n entered into a definitive Securities Purchase Agreement selling their \n 7,495,332 shares of Learning Tree International, Inc. for $7,495,332 or \n $1.00 per share (which collectively represents approximately 58% of the \n outstanding shares of common stock of the Company) to The Kevin Ross \n Gruneich Legacy Trust (the “Trust”). The Company became a party to the \n Purchase Agreement for the limited purposes of providing certain \n disclosures to and post-transaction director nomination rights for the \n Trust.\n \n \n In conjunction with the Trust’s purchase of the Collins’ shares, the \n Company has entered into the Line of Credit Agreement with the Trust \n that provides the Company with access to borrow up to $5.0 million at a \n fixed interest rate of 5% per annum. The principal amount of sums that \n are borrowed by the Company from the Trust under the Credit Agreement \n may be converted by the Trust into shares of Common Stock at any time \n during the 10-year term of the agreement at a conversion price of $1.00 \n per share. The Company has received an initial advance under the Credit \n Agreement in the amount of $2.0 million. This financing is in addition \n to the existing financing and security agreement with Action Capital \n Corporation that provides the Company with access to borrow up to $3.0 \n million. To date, we have not borrowed any funds under this other \n financing and security agreement. “With the immediate infusion of $2.0 \n million and credit lines for up to an additional $6.0 million, we have \n gained access to additional capital resources needed to focus on our \n goal of becoming the premier global provider of workforce development \n solutions related to technology and business,” stated Mr. Richard \n Spires, CEO of Learning Tree International.\n \n \n As part of the sale of the Collins’ holdings, Dr. David C. Collins and \n Mrs. Mary C. Collins have resigned as directors on the Company’s Board \n of Directors as well their other positions with the Company and its \n subsidiaries. The Company’s Board of Directors has appointed Mr. Kevin \n Gruneich to fill the Class III director v...