Vancouver, B.C., March 05, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- CIBT Education Group Inc. (TSX: MBA, OTCQX International: MBAIF) ("CIBT" or the "Company") provides the following update relating to the Coronavirus (COVID-19) outbreak and its current impact on the Company's various business units.
Education Business:
- Sprott Shaw College enrols over 4,000 domestic students in British Columbia throughout the year. There is no impact on domestic student enrolment.
- Sprott Shaw College's international department and our recruitment division, Global Education Alliance, enrols over 1,200 international students per year. Overseas inquiries from parents and students have significantly increased because parents are eager to send their children to Canada, which is less susceptive to the epidemic at present. However, foreign measures to prevent the spread of the epidemic, such as delayed visa processing and limited services of transportation, may slow down this development.
- Sprott Shaw International College and VIC Vancouver International College enrol over 6,000 international students per year. Due to the virus outbreak, many students are extending their stay in Canada, generating extra revenue for the schools. The volume of new enrollment inquiries has remained steady, and the mode of inquiry has been switched from face-to-face to online interviews. New enrollment arriving in Canada may be delayed by several weeks as abovementioned.
Student Housing Business:
- GEC® Granville hotel is experiencing no vacancy due to the unexpected US-bound visitors re-routed to Vancouver for quarantine purposes or a temporary visit.
- All other GEC® properties were pre-occupied by students before the coronavirus outbreak. Many occupants are extending their stay at GEC® properties rendering all of our properties near full capacity.
- As many students have been instructed by their parents to stay in Canada and not to return home this summer, we are expecting a higher occupancy rate this year.
"While the sudden global outbreak of coronavirus has left many businesses in crisis, we at CIBT are sympathetic to the infected populations around the world," said Toby Chu, Chairman, President, and CEO of CIBT Education Group Inc. "As noted above in our summary, CIBT’s operations have not been adversely affected by the epidemic. Our ability to grow our revenue base across all business units, combined with near-zero vacancies in our student housing residences, provides further evidence that our unique business model can thrive under the most difficult macroeconomic environments. Our value proposition of having a high-value rental income stream to support our significant education income while owning a diversified pipeline of students from 40+ countries around the world allows us to de-risk from political and epidemic concerns. We currently see no material risk to our business as a result of the global coronavirus outbreak. We will continue to closely monitor the development of the epidemic and assess its impact to our operations, taking all reasonable steps to maintain a safe, clean and healthy environment for our students to study and live and our staff to work."
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 45 locations in Canada and abroad. The 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. ("Global Education"), an investment holding and development Company focused on developing education related real estate such as student hotels, serviced apartments and education centres. The total portfolio and development budget of projects under Global Education's GEC® brand is over C$1 billion. The various GEC® properties provide accommodations to over 1,500 students and other tenants. CIBT also owns Global Education Alliance ("GEA") and Irix Design Group ("Irix Design"). GEA recruits international students on behalf of many elite kindergartens, primary and secondary schools, 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 & CEO
CIBT Education Group Inc.
Investor Relations Contact: 1-604-871-9909 extension 318 or | Email: info@cibt.net
FORWARD-LOOKING STATEMENTS
Some statements in this news release contain forward-looking information (the "forward-looking statements") about CIBT Education Group Inc. and its plans. Forward-looking statements are statements that are not historical facts. Forward-looking statements in this news release include (without limitation) statements as to there being no currently expected material risk to CIBT’s business as a result of the global coronavirus outbreak. The forward-looking statements are subject to various risks, uncertainties and other factors that could cause CIBT's actual results or achievements to differ materially from those expressed in or implied by forward-looking statements, including but not limited to usual construction risks, obtaining all necessary regulatory approvals, and the ability of the relevant limited partnerships to raise further funds as they are needed. Forward-looking statements are based on the beliefs, opinions and expectations of CIBT's management at the time they are made, and CIBT does not assume any obligation to update its forward-looking statements if those beliefs, opinions or expectations, or other circumstances should change, except as may be required by law.