CIBT Reports Financial Results for Fiscal Year Ended August 31, 2019

Vancouver, BC, Dec. 02, 2019 (GLOBE NEWSWIRE) — via NEWMEDIAWIRE — CIBT Education Group Inc. (“CIBT” or the “Company”) (TSX: MBA, OTCQX International: MBAIF) is pleased to report that it has filed on SEDAR its annual audited consolidated financial statements (the “Annual Financial Statements”) and related Management’s Discussion & Analysis (“MD&A”) (collectively, the “2019 Financial Report”) for the fiscal year ended August 31, 2019 (“Fiscal 2019”).  This news release should be read in conjunction with the 2019 Financial Report in its entirety.  To review the 2019 Financial Report, please visit CIBT’s profile at
The following table presents selected financial data from the 2019 Financial Report with comparisons:“Fiscal 2019 showed strong double-digit growth for the fifth consecutive year through our rental revenue, while our education segment displayed moderate growth,” commented Mr. Toby Chu, President, CEO and Chairman of CIBT. “Fiscal 2018 was a very strong year for our group and although 2019 revenues are slightly below those in our last fiscal year, our growth and profitability patterns over the last three years have been significant. In fiscal 2018, property value for Metro Vancouver’s real estate sector experienced its highest peak in decades. The Company successfully completed several transactions in fiscal 2018, outpacing the financial performance of all other years.  While the financial and real estate markets were undergoing a series of adjustments in 2019, we successfully accomplished many material milestones associated with our GEC® branded properties under development which have moved these projects closer to completion.”Some noteworthy milestones for Fiscal 2019 are:Sustained steady growth and profitability for our education subsidiaries: Sprott Shaw College, Vancouver International College and our overseas education subsidiaries, Beihai International College and CIBT ChinaSuccessfully integrated the assets purchased in 2017 from the receiver of KGIC Inc. (formerly Loyalist Group Inc.), rebranding them as Sprott Shaw Language CollegeTook possession of GEC® Pearson in August 2018 and achieved full occupancy of the property in August 2019Successfully completed $60 million capital raise for Global Education City (Richmond) Limited PartnershipSecured three parcels of lands to develop another new project called GEC® Oakridge at an expected cost of $103 millionCompleted US$8 million (CAD$10.7 million) equity financing for the GEC® Oakridge projectCompleted $12 million convertible bond and equity financing for CIBT and one of its subsidiaries limited partnershipPurchased 2.722 million common shares of the Company from the open market and cancelled 1.76 million shares pursuant to normal course issuer bids.  This action reduced the market float which positively impacts the earnings per share for CIBT shareholders.Refinanced $89.5 million in mortgages at a reduced interest rate and increased the profitability for our portfolio of GEC® branded propertiesTook possession of the GEC Education Mega Center® land in Surrey, B.C. for $22.6 million (before development fees and closing costs) with a market value appraised at $49.34 million according to the appraisal report.Commenced construction of Global Education City® (Richmond), and re-submitted the rezoning and development applications of GEC Education Mega Center® in Surrey and GEC® CyberCity in Richmond“According to a recent report published by ICEF Monitor, a dedicated market intelligence resource for the international education industry (*1), the number of international students studying in Canada has grown to 572,000 students from 492,000 in 2018,” Mr. Chu noted. “This trend reaffirms our international expansion plan for Sprott Shaw College commenced 12 years ago and reflects an increase in demand for student housing.“According to a Canada Mortgage and Housing report (*2), the vacancy rate for rental housing in Vancouver remains at 0.3% to 1%.  Management of CIBT believes the shortage will continue which should cause the rental rate to move-up and resale value of rental properties to also increase.  Since 2015, our student housing portfolio has grown to ten projects under the GEC® brand. Total portfolio value including both revenue-producing properties and properties under-development when fully built-out is estimated to be $1.38 billion.  “In the future, we plan to continue to exit certain GEC® projects when attractive divestment opportunities arise, while staying on as master-lease tenant so that we can grow the recurring rental income.  We intend to add more properties to our portfolio, increase the scale of each new GEC® project, and repeat our business model throughout Metro Vancouver with possible future expansion to the east coast and abroad. In addition to exploring acquisition opportunities in Metro Vancouver, we plan to investigate opportunities in Metro Toronto so that our future education assets in Toronto can become our stepping stone to establish our Global Education City® model in Eastern Canada.”(*1) ICEF Monitor:
(*2) Canada Mortgage and Housing report:

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