CIBT Provides Update on Financing of GEC Education Super Center and GEC Education Mega Center
December 19th 2016, Vancouver, BC: CIBT Education Group Inc. (“CIBT” or the “Company”) (TSX: MBA, OTCQX International: MBAIF) is pleased to report that subscription funds of $10.175 million have been received for the Phase 1 equity financing of GEC Education Super Center Limited Partnership. This amount is expected to rise to a total of $11 million in January 2017. A portion of the subscription funds were used to acquire the lands for the future site of GEC Education Super Center (the “Super Center”) in Metro Vancouver which was announced on November 2nd 2016. Application for rezoning will commence in January 2017. An architectural rendering of the Super Center can be viewed at http://www.cibt.net/news/video/emc.php.
In addition to the Phase 1 equity financing for the Super Center, the Company also reports that subscription funds of $5.325 million have been received for the Phase 1 equity financing of GEC Education Mega Center Limited Partnership (the “Mega Center”), with an additional $1 million expected to be received by December 31st 2016.
Total Phase 1 equity financing combining Super Center and Mega Center would amount to $17.325 million upon closing. CIBT will earn a development fee of approximately $4.08 million, and will purchase certain limited partnership units.
The Company also reports that its negotiation with a leading developer for the construction of the Mega Center in Surrey is well underway. The parties are working closely together to finalize the design plans, construction budget and the formal agreement. Preparation of the rezoning application for the Mega Center is well underway and submission to the city of Surrey is expected to occur in mid-January 2017. News coverage on the Mega Center can be viewed here: http://www.cibt.net/news/media/20160909.php
“2016 has been a phenomenal growth year for CIBT in terms of revenue, net profit and new project expansions,” commented Toby Chu, Chairman, President and CEO of CIBT Group. “Aside from selling the Ascenda School of Management for an attractive profit earlier this year, we also purchased a language college in mid-2016 at a reasonable price. We have grown our education assets steadily while expanding our student housing portfolio aggressively. Inclusive of all projects fully operational and under-development, the total Global Education City portfolio value has reached $600 million of which $75 million in value comes from the appreciation of these assets. These are significant milestones which have created a solid platform for our earnings and business expansion for 2017 and beyond. Management of CIBT extends its wholehearted appreciation and best holiday wishes to all shareholders, business and investment partners and its employees.”
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 TSE and U.S OTCQX International, CIBT owns business and language colleges with 27 locations enrolling over 8,000 students annually. 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. 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:
Toby Chu
Chairman, President & CEO
CIBT Education Group Inc.
Investor Relations Contact: 1-604-871-9909 extension 310 or | 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 and in this news release includes the statement as to the expected commencement date of the Super Center rezoning application, that an additional $1 million in subscription funds for GEC Education Mega Center Limited Partnership are expected to be received by the end of December 2016, and that the Mega Center rezoning application is expected to be submitted in mid-January 2017. 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. 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.