Investview Opts to Do a Perpetual Preferred Unit Offering in Lieu of the Tender Offering

Eatontown, NJ, Dec. 26, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Investview, Inc. (OTCQB: INVU) has altered its plan to launch a tender offer to exchange shares of its outstanding Common Stock for newly-created shares of Series A Convertible Preferred in favor of issuing a Perpetual Preferred Unit Offering. 

Investview Inc. has determined that is in the best interest of our shareholders to not proceed with the tender offer in lieu of a better alternative.  As Investview worked with financial and legal professionals to evaluate various courses of action, the Company was presented with the alternative of issuing a Perpetual Preferred Unit Offering which is better suited for Investview and its shareholders.

The Company plans to file a Registration Statement on Form S-1 offering up to 2 million Units at an offering price of $25 per Unit, each consisting of: (i) one share of 13% Cumulative Perpetual Preferred Stock having a stated value of $25 per share (the “Cumulative Preferred Stock”); and (ii) five common stock purchase warrants (the “Warrants”), each exercisable for five years from the effective date of the initial closing of the Registration Statement (the “Effective Date”). The Cumulative Preferred Stock, the Warrants and the shares of Common Stock underlying the Warrants will be registered in the Registration Statement. The 13% per annum dividends for the first three years will be escrowed from the $25 Unit offering price, representing $9.75 per share, which will result in net proceeds to the Company of $15.25 per share. These escrowed dividends shall be paid monthly from an escrow account that is yet to be established (the “Escrow Agent”). The Company can redeem the Cumulative Preferred Stock after three years at the $25 per share stated value or at any time after the 36-month anniversary of the Effective Date. Starting in year four, if not redeemed, the Company will pay the $3.25 per share yearly dividends in twelve equal monthly installments and, if any dividends are not paid, they will be cumulative and be accrued.

Upon the first closing, which shall occur immediately following the sale of 160,000 Units resulting in gross proceeds to the Company of $4 million, the Company will apply for the initial listing on the OTCQX of the shares of Cumulative Preferred Stock, the Warrants and, if eligible, the shares underlying the Warrants. To qualify for listing, the OTCQX requires 50 holders of the shares of Cumulative Preferred Stock and the Warrants and the Company already meets the number of holders of Common Stock for OTCQX listing but must also meet the price per share requirement.