TSX Venture Exchange - Symbol "LOY"
TORONTO, Sept. 24, 2012 /CNW/ - Loyalist Group Limited (TSXV: LOY), is pleased to announce that the company has signed a definitive
agreement with Cornerstone Academic College of ESL, Teacher Training
and Test Preparation Inc. ("Cornerstone").
Cornerstone is a globally recognized English as a Second Language school
operating in Toronto for the past 12 years. It earned revenues of
approximately $3 million in the fiscal year ended October 31, 2011.
Revenue from November 1, 2011 to August 31, 2012 was approximately $3.3
million, generated from average monthly enrollment of over 300
students. Cornerstone is an accredited member of Languages Canada.
"Cornerstone is an excellent fit for us," said Andrew Ryu, CEO of
Loyalist Group. "It's growing and profitable, and we expect both
revenue and profit growth to accelerate once we've applied our proven
integration model. And because Cornerstone's students tend to come
mostly from Latin America, this acquisition has the added benefit of
diversifying our student mix."
Mr. Ryu added: "This is our sixth acquisition in the past 18 months and
we view it as another important step to turning Loyalist into the
market leader in this wonderful industry. We continue to see many
opportunities to consolidate the market and create tremendous value for
Purchase details: The transaction is expected to close on or about
September 30th, 2012, subject to satisfaction of all conditions of closing and receipt
of all required regulatory approvals, including the approval of the TSX
Loyalist will pay $1.75 million for Cornerstone. Of the total, $1.55
million is payable in cash in two installments. The first $1.25 million
is due at the closing of the transaction, and the balance of $300,000
is due twelve months after closing, subject to adjustment. The
remaining $200,000 of the purchase price will be satisfied through the
issuance of 540,540 common shares of Loyalist at a price of $0.37 per
share. The shares issued to the vendors will be escrowed for 12 months
and released in equal quarterly installments, subject to adjustment.
About Loyalist Group Limited
Listed on the TSX Venture since January 4th 2011, Loyalist Group Limited (TSXV: LOY) owns and operates private
education schools both in Toronto and Vancouver offering (i) English as
a Second Language Courses for international students; (ii) Training
programs for teachers, commonly known as TESL; (iii) Professional
Development Courses; and (iv) Corporate English for Professionals.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
This news release, in accordance with the Safe Harbour provisions of the
Private Securities Litigation Reform Act of 1995, the Corporation notes
that some statements in this news release look forward in time based on
assumptions, uncertainties and management's best estimates of future
events, and involve risks and uncertainties that may affect the
Corporation`s actual results of operations. The following important
factors, among others that are discussed in Corporation filings, could
cause actual results to differ materially from those set forth in the
forward-looking statements such as, but not limited to risks related to
any of the Corporation`s announced acquisitions failing to close or
becoming delayed before closing; reliance on the South Korean contract
since it provides the majority of existing revenues; dealings in
international jurisdiction where Canadian laws do not apply; any loss
of certain key personnel; levels of students enrolment; delays in
rolling out the online education programs may cause loss of market
share; factors affecting ability to successfully compete amongst range
of education options available in market; and currency fluctuations
versus the Canadian dollar (i.e. South Korean won); and any detrimental
effects upon the "McKinsey" brand. Important factors that could cause
actual results to differ materially from those expressed or implied by
such forward-looking statements are detailed from time to time in
Loyalist Group Limited's periodic reports filed with the Ontario
Securities Commission and other regulatory authorities. Loyalist Group
Limited has no intention or obligation to update or revise any forward
looking statements, whether as a result of new information, future
events or otherwise.
SOURCE: Loyalist Group Limited
For further information:
Loyalist Group Limited
T: (416) 977-9800 x225
Loyalist Group Limited
T: (647) 202-5292