CIBT Signs Advisory Agreement with TriView Capital to Raise $110M Equity
Vancouver, B.C., June 23rd, 2016 – CIBT Education Group Inc. (TSX: MBA, OTCQX International: MBAIF) (“CIBT” or the “Company”) is pleased to announce that it has signed a financial advisory agreement (the “Agreement”) with TriView Capital Ltd., of Calgary, Alberta to raise an aggregate of $110 million equity for two limited partnerships being structured by CIBT and to be managed by one of CIBT’s subsidiaries, Global Education City Management Corp., to develop a GEC-branded Education Super Center in Metro Vancouver and Education Mega Center potentially in Surrey, BC (collectively referred to as “Super Centers”).
The concept of “Education Super Centers” was derived from CIBT’s development and successful launching of its Global Education City projects in Metro Vancouver, now comprising five student centric serviced apartments and hotels located in Metro Vancouver valued over $165 million. With two of these projects fully operational at near 100% occupancy, two projects near completion for August and December 2016 possession, one project expanded from two city lots to three city lots and now at re-zoning phase, the Education Super Center and Mega Center models were developed based on experiences gained and tremendous demand generated through CIBT’s schools, recruitment network and agency connections, and other elements of its education infrastructure.
“We have had the pleasure of working with TriView Capital since 2015 and TriView successfully completed $6 million in equity investments for a GEC-branded limited partnership project efficiently,” commented Toby Chu, President, Chief Executive Officer and Vice Chairman of CIBT Group. “From the experience gained and comments received so far, it is clear to us that investment interest in student housing is fresh and strong, and having CIBT Group’s 22 years education infrastructure along with Sprott Shaw College’s 113 years’ experience in BC’s education sector made a tremendous difference when connecting with potential investors. Furthermore, our infrastructure and experience has thus far ensured a steady pipeline feeding international students to our housing properties. Our Education Super Center and Mega Center projects will be the first of its kind in North America in terms of business model, innovation, scale and size. Total aggregated project size for these two projects is approximately C$400 million, and we look forward to working with TriView Capital on these projects.”
“These projects are cutting edge in the terms of thinking outside of the box. Instead of the notion of building housing and hoping that students arrive, these two specific “Super Centers” integrate educational infrastructure with student housing,” says Craig Burrows, President & CEO of TriView Capital Ltd. He also added, “Prestigious universities are no longer tied to their original site or city. They’re now opening up satellite schools to compete for the post-secondary student market. It’s a game changer that instead of people going to the mountain, the “Super Centers” are bringing the mountain to the students. Vancouver is the perfect city for international students and a perfect location for universities / colleges to set up satellite locations”.
About GEC Super Centers:
GEC Super Centers will be the first of their kind in North America, aggregating a number of multidiscipline public and private schools at one location, including language schools, colleges, technical and trade schools, and universities, supported by long and short-term stay hotels connected to the GEC Super Centers. Such arrangement will eliminate the need for students attending schools at a GEC Super Center to commute daily to and from school, saving them time and money. Perhaps even more importantly, students will be living and studying in a safe environment.
For commercial tenants and schools to be located at a GEC Super Center, they will be able to substantially reduce their operating cost by sharing common area facilities such as cafeteria, library, computer center, student lounges, job placement agencies and meeting/conference rooms. These facilities are expensive to maintain, often under-utilized but an essential requirement for every school. By pooling these resources together, school tenants located at GEC Super Centers will be able to focus on their core competency being “education”, instead of spending valuable capital and operating expenses on supporting facilities.
About TriView Capital Ltd.
TriView Capital Inc. is a registered EMD across Western Canada and Ontario that specializes in private and alternative investments. Focused primarily in the real estate sector and yield products, TriView offers investors unique opportunities not offered in the public markets. To learn more, visit www.triviewcapital.com.
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 at various 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, www.gecliving.com, and watch our corporate video at http://cibt.net/about/
Toby Chu
Vice-Chairman, President & CEO
CIBT Education Group Inc.
Investor Relations Contact:1-604-871-9909 extension 318 | Email: info@cibt.net
FORWARD-LOOKING STATEMENTS:
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. The forward-looking statements in this news release include, without limitation, plans to develop the Super Centers. 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 availability of sufficient funds on terms acceptable to CIBT or at all, obtaining all necessary municipal and other required regulatory approvals, and the demand for accommodations and commercial space if and when the Super Centers are constructed. 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.