Legacy Education Alliance, Inc. announced that it has issued 10% Convertible Debenture for gross proceeds of $50,000 on June 9, 2022. The transaction included participation from ABCImpact I, LLC. Pursuant to the Debenture, the lender has the option to loan up to an additional $4,950,000 to the Company.

The maturity date of the Debenture is the earlier of 12 months from the issue date and the date of a Liquidity Event (as defined in the Debenture), and is the date upon which the principal and interest shall be due and payable. The Debenture bears interest at a fixed rate of 10% per annum. The then outstanding and unpaid principal and interest shall be converted into shares of Company common stock and an equal number of common stock purchase warrants at the option of the Lender, at a conversion price per share of $0.05, subject to adjustment pursuant to the terms of the Debenture.

The Company may not prepay the Note without the prior written consent of the Lender.