CIBT Completes Purchase of Assets of KGIC Inc. (formerly Loyalist Group Ltd.)

CIBT Completes Purchase of Assets of KGIC Inc. (formerly Loyalist Group Ltd.)

Vancouver, British Columbia (FSCwire) - CIBT Education Group Inc. (“CIBT”) (TSX: MBA, OTCQX International: MBAIF) reports the completion of the acquisition of the operating assets of KGIC Inc. (“KGIC”).  KGIC, formerly known as Loyalist Group Ltd., was recently delisted from the TSX Venture Exchange. 

 

On January 25^th 2017, KGIC was placed under receivership.  Pursuant to an order of the British Columbia Supreme Court made on March 16^th, 2017, the Court approved an asset purchase agreement for the purchase by CIBT’s designated subsidiaries of substantially all of the assets KGIC Inc. and certain of its subsidiaries (the “Transaction”). The Transaction closed on March 29, 2017.  These former KGIC schools include:

 

9  Language Schools under the brands:

 

• King George International College – KGIC

 

• Pacific Gateway International College – PGIC

 

• Study English Canada – SEC

 

• Corner Stone Academic College – CAC

 

• Victoria International Academy Training Centre – VIA

 

4  Domestic Business Colleges under the brand:

 

• MTI College

 

4  International Business Colleges under the brands:

 

• King George International Business College – KGIBC

 

• Upper Career College of Business & Technology - UCCBT

 

1  Ontario high school:

 

• Urban International School - UIS

 

Approximately 2,000 students will continue their education within the KGIC system and many staff members have agreed to be retained. In addition, certain key strategic school leases are being preserved and many students are continuing in their home-stay arrangements.

 

CIBT paid $3.1 million to acquire the secured debts owed by KGIC to a Canadian bank. 

 

 “We are grateful for the support of regulatory bodies in B.C. and Ontario and, most importantly, of the management and staff of the affected schools.  Collectively, we secured the welfare of students, employees, partners and other stakeholders, not only bringing stability to the schools but also preserving the reputation of Canada’s private education sector at large,” commented Toby Chu, President, CEO and Chairman of CIBT.

 

“Going forward, these schools will be consolidated into the Sprott Shaw College (“Sprott Shaw”) system,” outlined Toby Chu. “We will consolidate and integrate the human resources, technology, administrative support and executive management with Sprott Shaw in order to achieve economies of scale and create synergies that will generate efficiencies, sustainable organic growth and add value for the benefit of all stakeholders.”

 

Post merger, restructuring and rightsizing, CIBT’s education platform and supporting services in Canada and abroad will consist of the following: 

 

• 16 business college  campuses (domestic students) under the brand Sprott Shaw College – SSC

 

• 3 business college campuses (international students) under the brand Sprott Shaw College International – SSCi

 

• 6 language school campuses under the brand Sprott Shaw Language College – SSLC

 

• 1 Ontario high school under the brand Urban International School – UIS

 

• 7 Student housing apartments and hotels in Metro Vancouver including the development of Education Super Center and Education Mega Center – Global Education City – GEC

 

• 1 corporate head office in Vancouver (including Irix Design Group Inc.)

 

• 6 overseas campuses under the brand CIBT School of Business and Beihai International College – CIBT

 

• 5 overseas recruitment offices under the brand Global Education Alliance - GEA

         -------------------------

• Total locations: 45

 

“In summary, our education platform now offers more than 150 programs and our projected annual student enrollment will grow from 8,000 to 20,000 students in the next 24 months.  This latest acquisition provides considerable economies of scale to CIBT, adds breadth and depth of program offering while tripling the size of its student pipeline feeding students to the company’s GEC student housing properties,” continued Toby Chu, President, CEO and Chairman of CIBT.

 

About CIBT Education Group:

 

CIBT Education Group Inc. is one of the largest educations & student housing investment companies in Canada focused on the global education market since 1994.  Listed on the Toronto Stock Exchange and U.S OTCQX International, CIBT owns business & language colleges, student housing properties, recruitment centers and corporate offices at 45 locations in Canada and abroad.  Total annual enrollment for the group exceeds 15,000 students.  Its education providers include Sprott Shaw College (established in 1903), Sprott Shaw Language College (formerly Vancouver International College), Sprott Shaw College International, Urban International School (Toronto) and CIBT School of Business.  Through these schools, CIBT offers business and management programs in healthcare, hotel management, language training, Ontario high school diploma and over 150 career, language and vocational programs.  CIBT's property investments are owned by Global Education City Holdings Inc., an investment holding and management company focused on developing education related real estate such as student hotels, serviced apartments and education super centers totalling over $600 million.  CIBT also owns Global Education Alliance (“GEA”) and Irix Design Group ("Irix Design"). GEA recruits international students for many elite kindergarten, primary & secondary schools, colleges and universities in North America.  Irix Design is a leading design and advertising company based in Vancouver, Canada. Visit us online at www.cibt.net, www.studenthotel.ca and watch our corporate video at http://cibt.net/about/.

 

Toby Chu

President, CEO and Chairman

CIBT Education Group Inc.

Investor Relations Contact: 1-604-871-9909 extension 310 or | Email: [e-mail]

 

FORWARD-LOOKING STATEMENTS:

 

Some statements in this news release contain forward-looking information (the “forward-looking statements”) about CIBT Education Group Inc. and its future plans. Forward-looking statements are statements that are not historical facts. The forward-looking statements are subject to various risks, uncertainties and other factors that could cause CIBT’s actual results or achievements to differ materially from those expressed in or implied by forward-looking statements, including but not limited to obtaining all necessary regulatory approvals.  Forward-looking statements are based on the beliefs, opinions and expectations of CIBT’s management at the time they are made, and CIBT does not assume any obligation to update its forward-looking statements if those beliefs, opinions or expectations, or other circumstances should change, except as may be required by law.

To view this press release as a PDF file, click onto the following link:
public://news_release_pdf/cibt03302017.pdf

Source: CIBT Education Group Inc. (TSX:MBA, OTCQX:MBAIF)

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