CIBT SIGNS LETTER OF INTENT FOR US$10M INVESTMENT
Capital Alliance Group Inc. (TSX.V: CPT) and its subsidiary, CIBT School of Business & Technology Corp. (“CIBT”), announced that they have signed a Letter of Intent (“LOI”) with a consortium of financial and strategic investors based in New York, Florida and Hong Kong. The LOI outlines the business terms for this consortium to make a US$10 million equity investment in CIBT. The LOI provides that, subject to the acceptance of the terms and conditions of the formal agreement and due diligence approval, the parties intend to complete this transaction before the end of October 2006. Further details will be disclosed after the closing of this transaction. This private placement was arranged by BMO Capital Markets Corp. (formerly Harris Nesbitt Corp.).
“We are excited to receive a high level of interest from these international investors,” commented Toby Chu, President and CEO of Capital Alliance Group Inc. and CIBT. “Upon completion of the financing, we will execute CIBT’s growth strategy by adding new campus locations throughout China and by establishing an extensive online education network. It is CIBT’s vision to establish a premium western based post-secondary education platform with a campus and online based support and delivery presence in China localized for the country’s massive student base.”
CIBT further reports that it has declined a strategic investor’s proposal to invest US$3.4M in CIBT, which was previously disclosed in a news release, dated April 18th 2006.
CIBT School of Business is a leading business and technical school, and has been providing training to students for over a decade in China. CIBT operates three campuses in Beijing, two campuses in Weifang, and five learning centers in other cities in China. CIBT has academic partnerships with Beijing University of Technology and Weifang University, and delivers postsecondary business, technology and technical trade skill programs to students and corporations in China. By cooperating with leading education providers in North America including Western International University, a subsidiary of Apollo Group Inc.; ITT Technical Institute; WyoTech Technical Institute, a subsidiary of Corinthian Colleges Inc.; and other universities from Europe and Asia, CIBT delivers advanced curricula to meet the progressive needs of China’s growing student population.
Capital Alliance Group Inc. and CIBT School of Business & Technology Corp
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