CIBT Signs Formal Agreement to sell one of its Subsidiaries
|December 7th, 2015, Vancouver, BC: CIBT Education Group Inc. (“CIBT”) (TSX: MBA, OTCQX International: MBAIF) is pleased to announce that it has signed a formal Purchase and Sale Agreement with a global education services provider to sell one of CIBT’s education subsidiaries. This transaction is subject to certain regulatory approvals, receipt of which is expected to take approximately 3 months. Transaction funds are being held in escrow. Details of this transaction will be disclosed upon the formal closing which will follow receipt of the required regulatory approvals. During fiscal 2015, this subsidiary generated approximately $2.8 million revenue and $290,000 EBITDA, and had approximately 160 students.
“We are pleased with the attractive return on investment of this transaction and its future prospects. The purchaser possesses an expansive network of international colleges and universities around the world and is financially supported by institutional investors. We believe the purchaser will be able to take this subsidiary to new heights,” commented Toby Chu, President and CEO, Vice Chairman of CIBT. “Proceeds from this transaction will be used to acquire undervalued schools at reasonable market prices. Customary to our operating model, CIBT will add value to the business and operations of the acquired schools, nurture the schools to become successful and then exit with significant gains. In addition, our focus will target schools with significant international student volume so that our education assets will continue to feed a pipeline of international students to our rapidly expanding student housing portfolio.”
About CIBT Education Group:
CIBT Education Group Inc. is an education management company focused on the global education market since 1994. Listed in Canada on the Toronto Stock Exchange and in the U.S. on the OTCQX International, CIBT owns and operates a network of business, technical and language colleges in North America and Asia. CIBT offers cooperative joint programs in 12 countries with campuses, recruitment offices and training centers enrolling over 7,000 students annually. Its education business is operated through Sprott Shaw College (established in 1903), Acsenda School of Management, CIBT School of Business China, and Global Education Alliance Recruitment Centers in China and other overseas countries. Through these subsidiaries, CIBT offers recognized and approved business and management degrees, programs in college preparation, healthcare, hotel management and tourism, English language training, English Teacher Certifications, junior and high school preparation programs for overseas study, and other career/vocational training. CIBT also owns Irix Design Group, a leading design and advertising company based in Vancouver, Canada, Global Education Alliance (“GEA”) and Global Education City Holdings Inc. (“GEC”). GEA recruits international students for many elite kindergarten, primary, secondary schools and universities in North America. GEC is an investment holding and management company with a special focus on education related real estate projects in Canada. Visit us online at http://www.cibt.net and watch our corporate video at http://cibt.net/about/.
For more information contact:
Vice-Chairman, President & CEO
CIBT Education Group Inc.
Investor Relations Contact:1-604-871-9909 extension 318 | Email: firstname.lastname@example.org
|FORWARD LOOKING STATEMENTS:
Some statements in this news release contain forward-looking information (the “forward-looking statements”) about CIBT Group and its future plans. Forward-looking statements are statements that are not historical facts. The forward-looking statements in this news release are subject to various risks, uncertainties and other factors (collectively, “Risks”) that could cause the company’s actual results or achievements to differ materially from those expressed in or implied by forward-looking statements. With respect to the statement in this news release as to the expected number of job openings in B.C. by 2022 in the areas of skilled trades and technical occupations, the Risks include uncertainties as to the actual development of the B.C. economy. Forward-looking statements are based on the beliefs, opinions and expectations of CIBT Group’s management at the time they are made, and CIBT Group 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.