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:
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
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
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.
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