TSX Venture Exchange
TORONTO, Jan. 26, 2017 /CNW/ - KGIC Inc. ("KGIC" or the "Company") (TSX VENTURE: LRN) announces that its lender, CIBT Finance (2017) Corp. ("CIBT"), has made demand upon KGIC as debtor, and 23 of KGIC's subsidiaries as guarantors (collectively, the "Guarantors") for payment in full of KIGC's outstanding indebtedness in the aggregate amount of $12,301,231 by February 7, 2017. In addition, CIBT has provided KGIC and each of the Guarantors with a Notice of Intention to Enforce Security pursuant to subsection 244(1) of the Bankruptcy and Insolvency Act (Canada).
The Company also announces that pursuant to an order of the Supreme Court of British Columbia dated January 25, 2017, BDO Canada Limited was appointed as receiver and manager ("Receiver"), without security, of all of the assets, undertakings and properties of the Company. The Receiver was appointed pursuant to an application brought by CIBT.
In light of the above, three of the Company's four directors have resigned, being Dr. Alex MacGregor, Martin Bernholtz and Ako Ufodike. The sole remaining director, Shan Padda, has indicated his intention to resign.
About KGIC Inc.
KGIC owns and operates private English as a Second Language (ESL) Schools, Career Colleges and Community Colleges in Toronto, Vancouver and Victoria.
Forward-Looking Information and Statements
This news release includes certain forward-looking information and statements within the meaning of Canadian securities laws. Such forward-looking information and statements are not representative of historical facts or information or current condition, but instead represent only the Company's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company's control. Generally, such forward-looking information or statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken, "will continue", "will occur" or "will be achieved". The forward-looking information contained herein includes information concerning the ability of Company to continue as a going concern. By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements.
The forward-looking information contained in this press release is made as of the date hereof, and the Company does not undertake to update any forward-looking information that is contained or referenced herein, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws. All subsequent written and oral forward looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice.
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.
SOURCE KGIC Inc.
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For further information: Shahzad Rashid, VP, Finance and Internal Controls, KGIC Inc., T: 416-969-9800 ext. 241, E: [email protected]