CIBT Reports Completion of First Tranche of New Private Placement
January 26th , 2017, Vancouver, BC: CIBT Education Group Inc. (“CIBT”) (TSX: MBA, OTCQX International: MBAIF) reports that it has closed the first tranche of a private placement, raising approximately $1,357,400 million by the issuance of 2,262,333 units at a price of $0.60 per unit. The proceeds from this private placement are intended to be used to provide a fund for school acquisition and expansion. Each unit consists of one common share and one-half of one share purchase warrant, with each whole warrant entitling the holder to purchase one common share for a period of two years at a price of $0.75. Included in the finder’s fees paid in connection with this financing are 350,000 finder’s warrants, each finder’s warrant exercisable, for a period of two years, for one common share at a price of $0.75 per share. The securities issued in this private placement are subject to a four month hold period.
With reference to the private placement described in its news release of January 25, 2017, CIBT reports that it incurred a financial advisory fee which included 66,667 broker’s warrants, each broker’s warrant exercisable for one common share at a price of $0.75 per share for a period of one year.
CIBT also reports that, subject to the satisfaction of certain conditions, it has agreed to issue convertible debentures in the aggregate principal sum of $1,500,000. The debentures, which will mature in five years and will bear interest at the rate of 4% per annum, will be convertible by the holders into common shares of CIBT at a price of $0.79 per share. The debentures will also be convertible by CIBT upon the achievement of a specified milestone. The proposed issuance of the convertible debentures is related to the proposed acquisition of a group of 18 schools located in Vancouver and Toronto.
About CIBT Education Group:
CIBT Education Group Inc. is one of the largest education and 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 34 locations in Canada and abroad. Total annual enrollment for the group exceeds 8,000 students. Its education providers include Sprott Shaw College (established in 1903), Vancouver International College and CIBT School of Business. Through these schools, CIBT offers business and management programs in healthcare, hotel management, language training, and over 150 career 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 http://www.cibt.net, www.studenthotel.ca, and watch our corporate video at http://cibt.net/about/
For more information contact:
President, CEO and Chairman
CIBT Education Group Inc.
Investor Relations Contact: 1-604-871-9909 extension 310 or | Email: email@example.com