Business
ProBility Media Corp. Improves Balance Sheet by Entering into Settlement Agreements to Eliminate Over $2 Million of Corporate Debt
ProBility Media Corp. Improves Balance Sheet by Entering into Settlement Agreements to Eliminate Over $2 Million of Corporate Debt.
About this update from Probility Media Corp.
[{"type":"text","content":"\nHOUSTON, Oct. 31, 2018 (GLOBE NEWSWIRE) -- via NetworkWire – ProBility Media Corp. (OTCQB : PBYA), an education technology (EdTech) company offering immersive technologies, digital learning and compliance solutions for the industrial education and training markets, today announced that it has entered into a series of agreements with various merchant cash advance lenders (“MCA’s”), which together, has resulted in the settlement of over $2 million of the principal amount of debt obligations (“Settlement Agreements”). \"Settling this MCA debt is a major step toward cleaning up the Company’s balance sheet, stabilizing operations and positioning the Company for future growth,” stated Evan Levine, Chief Executive Officer of ProBility Media. “The Company will continue taking aggressive steps to address its remaining payables and debt obligations, as well as to reduce overhead and operating costs in order to improve its cash flow. The Company is also in the process of liquidating certain real estate holdings and at the conclusion of the settlement payments, estimates that nonconvertible corporate debt will stand at approximately $1.5 million. The Company is also engaged in debt restructuring negotiations with other classes of holders. We have been adjusting our business model, primarily by moving away from low margin printed materials to higher margin training and e-learning products, the goal of which is to increase profit margins and put the Company on a path to profitability in 2019.\" The Company entered into Settlement Agreements with all MCAs with whom the Company was in default and will no longer have similar loans on the books at the completion of repayment. In the aggregate $2,054,900 of MCA debt was forgiven. The Company:\n (i) paid approximately $207,000 in cash on October 26, 2018; (ii) is required to make additional cash payments of approximately $158,000, $150,000 and $150,000 on November 25, 2018, December 25, 2018 and January 24, 2019, respectively; and, (iii) will issue approximately 4,092,000 shares of convertible preferred stock equal to 120% of the remaining outstanding balance of MCA debt of approximately $1,417,000 upon receiving shareholder approval for the increase in the number of authorized shares of common stock.   In order to make the October 26, 20...