HOUSTON, 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:
(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, 2018 payment, the Company issued convertible notes payable to 4 accredited institutional investors on October 26, 2018 in the amount of $259,000. The convertible notes are due in six months, bear interest at 8% and are convertible at a price equal to the lower of $0.02 or 60% of the lowest closing price during the prior twenty trading days. In addition, the Company issued warrants to purchase a total of 12,950,000 shares of the Company’s stock to the investors. The warrants have a term of five years and an exercise price of $0.02 per share.
About ProBility Media Corp.
ProBility Media Corp. is an industrial education and training technology company headquartered in Houston, Texas, offering immersive technologies, digital learning and compliance solutions for a wide variety of industrial trades. ProBility is executing a disruptive strategy of defragmenting the education and training market place by offering high quality training courses and materials utilizing mixed reality and digital animation to prepare the workforce for excellence. ProBility services customers from the individual to the small business to the enterprise level corporation. For more information, visit http://www.ProBilityMedia.com.
Forward-Looking Statements
This Press Release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect the Company's current beliefs and are based upon information currently available to it. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. The Company undertakes no obligation to update or advise in the event of any change, addition or alteration to the information included in this Press Release including such forward-looking statements, except as required by federal securities laws.
Investor Relations Contact:
ProBility Media Corp.
Evan Levine
Chairman and Chief Executive Officer
713.652.3937
Corporate Communications Contact:
NetworkNewsWire (NNW)
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