Learning Tree International entered into a line of credit agreement with the Kevin Ross Gruneich Legacy Trust, which will provide the company with access to up to $5 million at a fixed interest rate of 5% per year.
The company received an initial advance under the credit agreement in the amount of $2 million. The principal amount of sums borrowed by the company may be converted by the trust into shares of common stock at any time during the 10-year term of the agreement at a conversion price of $1.00 per share. The financing is in addition to an existing financing and security agreement of up to $3 million with Action Capital Corporation.
The new agreement was signed in conjunction with Learning Tree’s co-founder, Dr. David C. Collins, and his wife, Mary C. Collins, signing a definitive securities purchase agreement to sell their company shares for $7.495 million to the Kevin Ross Gruneich Legacy Trust. The shares represent approximately 58% of the outstanding shares of common stock of the company. The company became a party to the purchase agreement for the limited purposes of providing certain disclosures to and post-transaction director nomination rights for the Trust.
“With the immediate infusion of $2 million and credit lines for up to an additional $6 million, we have gained access to additional capital resources needed to focus on our goal of becoming the premier global provider of workforce development solutions related to technology and business,” said Richard Spires, Learning Tree CEO.
As part of the sale, David and Mary Collins will resign as directors on the company’s board as well as from their other positions with Learning Tree and its subsidiaries.
Learning Tree International provides mission-critical IT training and certifications, including education in, among others, cyber security, cloud computing, program/project management, web development, operating systems and networking.
