VANCOUVER, May 1, 2019 /CNW/ - 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.
Toby Chu
Chairman, President and Chief Executive Officer
CIBT Education Group Inc.
Forward-Looking Statements:
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.
SOURCE CIBT Education Group Inc.