CIBT Reports Purchase of Senior Secured Debt, Completion of Private Placement & Suspension of Share Buy-back
January 25th , 2017, Vancouver, BC: CIBT Education Group Inc. (“CIBT”) (TSX: MBA, OTCQX International: MBAIF) reports that a subsidiary of CIBT (the “CIBT Subsidiary”) has completed a Debt Assignment Agreement (the “Transaction”) to purchase from a Canadian bank (the “Bank”) approximately $12.3 million of secured debt (the “Debt”) for $3.1 million. The Debt is owed to the Bank by a group of colleges with 19 locations operating in British Columbia and Ontario (the “Debtor”). As a result of the debt assignment, the CIBT Subsidiary replaces the Bank as the Debtor’s senior secured creditor.
In addition, CIBT reports that it has closed a private placement, primarily with institutional investors, raising approximately $2.04 million by the issuance of 3.238 million units at a price of $0.63 per unit. The proceeds from this private placement were used as partial consideration for the Transaction. 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 one year at a price of $0.75. The securities issued in this private placement are subject to a four month hold period.
CIBT also reports the suspension of its normal course issuer bid (share buy-back) which commenced as of February 29, 2016.
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:
Toby Chu
President, CEO and Chairman
CIBT Education Group Inc.
Investor Relations Contact: 1-604-871-9909 extension 310 or | Email: info@cibt.net