CALGARY, Aug. 3 /CNW/ - Edleun Group, Inc. ("Edleun" or the "Company") (TSX-V: EDU), a leading consolidator and developer of childcare facilities across Canada, announced today that it has completed the acquisition of the previously announced six additional childcare centres located in Edmonton, Calgary and Red Deer, Alberta. Including the transactions just completed, Edleun owns 17 centres in Canada. The acquisition of these six centres adds 467 licensed childcare spaces to the Company's portfolio and increases the total to 1,568 spaces. These additions will make Edleun one of Canada's leading childcare operators in a fragmented industry that includes an estimated 8,800 centres across Canada.
"Edleun has identified a considerable number of childcare centres across Canada that fit its acquisition and improvement program criteria," said Mr. Leslie Wulf, Chief Executive Officer of Edleun. "To be considered, all centres must be capable of attaining our high standards for quality in a short period of time. We are also actively pursuing development plans for new construction of "state of the art" childcare centres in a number of Calgary and Edmonton residential communities where there are currently no childcare facilities, to provide residents with both quality and choice."
All six centres were acquired for a total purchase price of $7.1 million. The Company is acquiring both the real estate and childcare operations at five of the centres; the acquisition of the sixth centre includes the childcare operations and a long-term leasehold interest in the real estate, with Edleun obtaining a right of first refusal to purchase that real estate.
The acquisition of one of the six additional childcare centres was from an individual who is a director of Edleun and therefore the acquisition of that childcare centre constitutes a "related party transaction" as that term is defined in Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). Edleun was exempt from obtaining both a formal valuation and minority shareholder approval in connection with the acquisition of the childcare centre from the director of Edleun because the acquisition price for that childcare centre, paid for in cash, did not exceed 25 per cent of Edleun's market capitalization as calculated in accordance with MI 61-101.
Edleun began implementing its acquisition and new development growth strategy in May 2010 when it completed a $40.7 million equity financing and acquired 11 childcare centres in Alberta. All acquired centres undergo a comprehensive remodelling and upgrading process, which includes the implementation of an educational curriculum and nutritious meal programs, to ensure they consistently meet Edleun's high standards. The upgrading process for all 17 centres is expected to be completed in the third quarter of calendar 2010.
About the Company
Edleun is a leading provider of high-quality, educational childcare in Canada. The Company is committed to providing children, families and employers with access to, and choice of, quality early childhood education programs, helping Canadians balance their work and family lives.
Edleun's goal is to become the leading educational and childcare provider in Canada. The Company's objectives include the acquisition and improvement of existing childcare centres and development of new childcare centres across Canada.
Certain statements in this Release which are not historical facts may constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Any statements related to Edleun's projected revenues, earnings, growth rates, revenue mix, staffing and resources, and product plans are forward looking statements as are any statements relating to future events, conditions or circumstances. The use of terms such as "believes", "anticipated", "expected", "projected", "targeting", "estimate", "intend" and similar terms are intended to assist in identification of these forward-looking statements. Readers are cautioned not to place undue reliance upon any such forward-looking statements. Such forward-looking statements are not promises or guarantees of future performance and involve both known and unknown risks and uncertainties that may cause the actual results, performance, achievements or developments of Edleun to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions. Except as required by law, Edleun does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change.
The Company undertakes no obligation, except as required by law, to update publicly or otherwise any forward-looking information, whether as a result of new information, future events or otherwise, or the above list of factors affecting this information. Many factors could cause the actual results of Edleun to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements.
Neither 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.
SOURCE BrightPath Early Learning Inc.
For further information: For further information: Leslie Wulf, Chief Executive Officer of Edleun Group, Inc. at (403) 800-0890