Over $16 Million in Private Placement Subscriptions Received for Flagship Global Education City Projects
Vancouver, B.C., September 28th, 2016 – CIBT Education Group Inc. (TSX: MBA, OTCQX International: MBAIF) (“CIBT”) is pleased to announce that approximately $16.85 million in subscription funds and signed unit subscription agreements have been received from qualified investors for the purchase of limited partnership units in connection with the GEC Education Mega Center and GEC Education Super Center flagship projects. The subscriptions will be closed in a series of tranches throughout September and October. Proceeds from these subscriptions will be used by the respective limited partnerships to acquire the lands and to provide deposits for construction of the GEC Super Center and GEC Mega Center.
“We are very pleased to have received such high level of interest in a very short time for our GEC flagship projects,” commented Toby Chu, Chairman, President and CEO of CIBT Education Group. “We expect that the first phase financing raising approximately $17 million will soon be fully subscribed, and the limited partnerships will then proceed with phase 2 of the equity raise of approximately $100 million. These private placements are being conducted through limited partnerships managed by a subsidiary of CIBT and therefore, there is no share dilution to CIBT shareholders. These flagship projects will generate substantial structuring fees and are expected to also generate significant management income and capital gains to the benefit of CIBT and its shareholders.”
About CIBT Education Group:
CIBT Education Group Inc. is an education and student-housing investment company focused on the global education market since 1994. Listed on the Toronto Stock Exchange and 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 various countries with campuses, offices and training centers at 27 locations enrolling over 8,300 students annually. Its education business is operated through Sprott Shaw College (established in 1903), Vancouver International College and CIBT School of Business. Through these subsidiaries, CIBT offers recognized and approved business and management degrees, programs in college preparation, healthcare, hotel management, English language training, and over 150 career and vocational programs. 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. (“Global Education Holdings”). GEA recruits international students for many elite kindergarten, primary, secondary schools and universities in North America. Global Education Holdings is an investment holding and management company with a special focus on education related real estate projects in Canada such as student hotels, serviced apartments and education super centers. Visit us online at http://www.cibt.net, www.studenthotel.ca, and watch our corporate video at http://cibt.net/about/
Chairman, President and CEO
CIBT Education Group Inc
Investor Relations Contact: 1-604-871-9909 extension 318 or | Email: email@example.com
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 and in this news release include the statements as to the expected financings for the GEC Education Mega Center and GEC Education Super Center projects, the intended use of proceeds, and that significant management income and capital gains are anticipated. The forward-looking statements are subject to various risks, uncertainties and other factors (collectively, “Risks”) that could cause CIBT’s actual results or achievements to differ materially from those expressed in or implied by forward-looking statements. The Risks include, without limitation, the ability to raise the uncommitted portion of the total equity investment and secure other required funding to acquire the project and pay the required construction deposits, usual construction risks, the ability to obtain all required municipal approvals, and future real estate appreciation. 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.