VANCOUVER, June 4, 2019 /CNW/ - CIBT Education Group
Inc. ("CIBT" or the "Company") (TSX: MBA, OTCQX International:
MBAIF) is pleased to provide the following corporate finance
updates on the Company and Global Education City (Richmond) Limited Partnership:
a)
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CIBT has closed two
tranches of its private placement of convertible debentures
announced on May 1, 2019, raising aggregate cash proceeds of
approximately C$8.2 million; and
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b)
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Global Education City
(Richmond) Limited Partnership has raised cash proceeds of
approximately C$3.806 million in private placement equity
subscriptions which have closed in May
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All subscribers are either institutional investors, family
trusts or accredited investors from Canada and abroad.
The convertible debentures issued by CIBT will, unless extended
in accordance with the provisions thereof, mature 24 months after
issuance 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 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%. The conversion price of the debentures in the current
private placement thus far are exercisable at the CAD equivalent of
between approximately C$0.78 -
C$0.81 per share. The
convertible debentures and the common shares into which they may be
converted are subject to a four-month hold period starting from the
date of issuance of the debentures.
The equity subscriptions in Global Education City (Richmond) Limited Partnership are direct
investments into the limited partnership for the development of the
Global Education City (Richmond)
project, and without dilution to CIBT shareholders.
"We are very pleased to see a strong level of interest from
local and overseas investors given that recent market conditions
hava been affected by various political uncertainties between
the United States and China," commented Toby
Chu, Chairman, President and Chief Executive Officer of
CIBT. "Despite these global uncertainties, this latest round of
investment is an endorsement of our credibility, proof of our
successful business model, and acceptance by investors from
Canada and abroad."
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.
Toby Chu, Chairman
President and Chief Executive Officer
CIBT Education Group Inc.
SOURCE CIBT Education Group Inc.