CIBT to raise up to approximately C$10 million through issuance of convertible debentures
Vancouver, BC – May 1, 2019 – CIBT Education Group Inc. (“CIBT” or the “Company”) (TSX: MBA, OTCQX International: MBAIF) reports that it plans to raise up to approximately C$10 million through a private placement of convertible debentures. The debentures will mature 24 months after issuance (unless extended in accordance with the provisions thereof) and will carry an annual coupon of 8-9%. The outstanding principal sum will be convertible into common shares before the maturity date at a conversion price, currently anticipated to be approximately $0.76-$0.80 per share, which will be determined based on the 30 day VWAP (volume weighted average price) calculated on the trading day prior to the issuance of the debentures, plus a premium of 20 – 25%.
This private placement, which is subject to receipt of TSX approval, is expected to close in tranches. Capital is being raised for the purposes of increasing CIBT’s ownership stake in the existing real estate limited partnership projects for general working capital and for expenses relating to the proposed dual listing of the Company’s shares in Asia. No representation can be given that the dual listing will be achieved.
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 and language colleges, student housing properties, recruitment centres and corporate offices at 43 locations in Canada and abroad. Total annual enrollment for the group exceeds 12,000 students. Its education providers include Sprott Shaw College (established in 1903), Sprott Shaw Language College, 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, language and vocational programs. CIBT owns Global Education City Holdings Inc., an investment holding and development company focused on developing education-related real estate such as student hotels, serviced apartments and education super centres. Total portfolio and development budget of projects under the GEC® brand is more than C$1 billion. CIBT also owns Global Education Alliance (“GEA”) and Irix Design Group (“Irix Design”). GEA recruits international students on behalf of many elite kindergarten programs, primary and secondary schools, and colleges and universities in North America. Irix Design is a leading design and advertising company based in Vancouver, Canada. Visit us online and watch our corporate video at www.cibt.net.
Chairman, President and Chief Executive Officer
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 plans. Forward-looking statements are statements that are not historical facts. Forward-looking statements in this news release include (without limitation) the plans to undertake the offering described herein. 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 TSX approval to the offering. 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.