Company: LGCY
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006418
Chunk: 89

Company: Legacy Education Inc.
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 8
Chunk 89
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 all of the assets comprising the postsecondary institution known as Contra
Costa Medical Career College located in Antioch, California (the “CCMCC Assets”) pursuant to that certain asset purchase
agreement (the “APA”) dated October 22, 2024 by and among the Buyer, Legacy Education Inc. (the “Company”), Legacy
Education, LLC, a wholly-owned subsidiary of the Company (“Legacy LLC” and together with the Company and the Buyer, the “Buyer
Parties”), Contra Costa Medical Career College, Inc. (“CCMCC”), Contra Costa Medical Career College Online, Inc. (“CCMCC
Online” and together with CCMCC, “Sellers”), and, solely with respect to certain portions of the APA, Stacey Orozco
and Bulmaro Orozco, the sole owners CCMCC and CCMCC Online (collectively, the “Owners”), as previously disclosed in the Company’s
Current Report on Form 8-K filed with the Securities and Exchange Commission on October 25, 2024.

Pursuant
to the APA, on the Closing Date, the Buyer acquired the CCMCC Assets for: (i) $6,133,079 paid in cash on the Closing Date (which was
$6,600,000 pursuant to the APA adjusted for certain estimated closing capital as set forth in the APA); (ii) the delivery by the Buyer
to the Sellers of a promissory note (the “Note”) in the principal amount of $400,000, which Note is guaranteed by the Company
and Legacy LLC, accrues interest at a rate of 6% per annum and is payable in 12 equal monthly installments beginning on the one-month
anniversary of the Closing Date; and (iii) the issuance of 118,906 shares (the “Legacy Shares”) of the Company’s common
stock to Equiniti Trust Company, LLC (“Equiniti”), as escrow agent for CCMCC, pursuant to the that certain Stock Escrow Agreement
by and among the Buyer, CCMCC and Equiniti dated as of December 18, 2024 (the “Stock Escrow Agreement”). The Legacy Shares
will be held in escrow for a period of one year following the Closing Date and subject to any indemnification claims made by the Buyer
pursuant to the APA that are not fully resolved and satisfied prior to the end of such one-year period either