BrightPath Enters into a Major Transaction to Augment Funding for its Growth Pipeline and Share Repurchase Program

CALGARY, July 29, 2015 /CNW/ - BrightPath Early Learning Inc. ("BrightPath" or the "Company") (TSX-V: BPE), the leading Canadian provider of quality early childhood education and care, announced today it has entered into conditional agreements with an affiliate of First Capital Realty Inc. ("First Capital") to sell and leaseback its premier McKenzie Towne location in southeast Calgary. Situated on land pursuant to a long term ground lease, this state-of-the-art building, designed and built by BrightPath, will be sold for gross proceeds of $7.5 million. In conjunction with the sale and surrender of the ground lease, the Company will enter into a long-term lease for this property with First Capital, thereby providing BrightPath with a long term presence in the growing McKenzie Towne community.

The transaction is being effected at a capitalization rate of 6.76% which, the Company believes, is very attractive pricing for a real estate land lease transaction of this nature and, more importantly, recognizes the inherent strength of BrightPath's operating and financial covenant as a tenant. The transaction is anticipated to close in the third quarter of 2015.  

This transaction should, after all attendant expenses, create the availability of approximately $7.3 million of incremental capital to redeploy to generate cash flow from new capital initiatives and surface shareholder value. Such initiatives include the augmentation of its currently available funding for the Company's growth pipeline and the purchase of the Company's common shares which both management and the board of directors deem to be significantly undervalued at their current market price. These anticipated uses of proceeds should serve to further increase the Company's profitability both in absolute terms and on an accretive basis.

The Company expects to report a gain on disposition of approximately $1.8 million from the sale. After the repayment of indebtedness under the Company's credit facility and associated transaction costs, the sale will generate estimated net cash proceeds to the Company of $3.25 million. BrightPath can then avail itself of the $4 million of bank financing repaid thereby creating $7.3 million of available capital as noted previously.

"This transaction validates the significant market value of BrightPath's large portfolio of owned real estate, and the value created by the Company's greenfield developments. Neither one of these assets is believed to be fairly valued in the Company's current share price. It is noteworthy that the Company owns 24 properties and one single property transaction is surfacing $7.3 million of capital. Real estate monetization represents just one of several initiatives management is exploring to surface value for its shareholders," said Mary Ann Curran, Chief Executive Officer of BrightPath.

Following the sale and leaseback of the McKenzie Towne property, the Company will own 23 centres totalling approximately 160,000 square feet, including its nearly identical Chestermere greenfield location which was developed and opened just months before McKenzie Towne.  The Chestermere location is sited on land owned by the Company (as compared to McKenzie Towne which was developed on leased lands). The Company has also announced and is in the process of constructing two 20,500 square feet greenfield developments in Alberta -- Creekside and West Henday -- modelled after the successful McKenzie Towne project; they are expected to open in the third quarter of 2015 and first quarter of 2016, respectively.

About BrightPath Early Learning Inc.

BrightPath Early Learning Inc. is a Canadian leader in child care and early education with 52 locations in major markets across the country. Meeting the highest standards in curriculum, nutrition, technology and recreational programing, BrightPath is committed to providing families with the very best child development programs and care Canada has to offer. 

For more information, please visit or contact Dale Kearns, President and CFO of BrightPath Early Learning Inc. at (403) 705-0362 Ext. 406.

Forward-Looking Statements

Certain statements contained herein constitute forward-looking statements regarding the future growth, results of operations, performance and opportunities of the Company. Forward-looking statements can generally be identified by the use of, but not limited to, the following words: "plans", "expects" or "does not expect", "budget", "scheduled", "estimate", "forecast", "pro forma", "anticipate" or "does not anticipate", "believe", "intend", "inferred", "potential" and similar expressions or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements are not historical facts, but reflect the Company's current expectations regarding future results or events based on information currently available and what the Company believes to be reasonable assumptions. All forward-looking statements are qualified by these cautionary statements. 

Forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results or events to differ materially from those expressed, implied or projected include, but are not limited to, general economic conditions, the Company's ability to meet and maintain forecasted occupancy levels, general government policies, continued availability of government child care subsidies to parents, unexpected costs or liabilities related to acquisitions, construction, environmental matters, legal matters, changes in interest rates, credit spreads and the availability of financing. In addition, please refer to the Risks and Uncertainties section of the Company's annual Management's Discussion and Analysis. As such, the Company gives no assurance that actual results will be consistent with these forward-looking statements.

Readers should not place undue reliance on any such forward-looking statements. These forward-looking statements are made as of the date hereof. The Company undertakes no obligation to publicly update or revise any such statement, reflect new information or reflect the occurrence of future events or circumstances, except as required by securities laws.

SOURCE BrightPath Early Learning Inc.

For further information: Dale Kearns, President & CFO, BrightPath Early Learning Inc., Office: (403) 705-0362 Ext. 406, Toll Free: (888) 808-2252, Suite 200, 30 Glendeer Circle SE, Calgary, AB, T2H 2Z7,­

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