Capital Alliance enters LOI to acquire Cdn college
Capital Alliance Group Inc (C:CPT)
Shares Issued 4,769,073
Last Close 10/1/2007 $1.87
Monday October 01 2007 - News Release
Mr. Toby Chu reports
CAPITAL ALLIANCE TO ACQUIRE LEADING CAREER AND ACADEMIC COLLEGE IN CANADA
Capital Alliance Group Inc. has entered into a letter of intent to acquire a leading career and academic college in Canada with a presence in Asia and the Middle East. The LOI outlines the company's intention to acquire 100-per-cent ownership of the target, which reported averaged annual revenues (audited) in excess of $30-million for the past four years.
The purchase will be payable in cash, with details on the agreement to be released at the time of closing. The parties are proceeding to due diligence and the preparation of definitive agreements, and expect to complete the transaction by the end of this calendar year.
"This strategic acquisition will significantly benefit our company's subsidiary, CIBT School of Business and Technology Corp., in many ways," commented Toby Chu, president and chief executive officer of Capital Alliance Group. "This includes building an education pipeline for students from China to continue their studies in Canada, taking existing career training programs and exporting them into China and Asia, delivering CIBT's U.S. partner curricula into Canada, and leveraging on the target's existing international presence. We are excited about the synergies that we think this transaction can create for us and the target's extensive experience in the career vocational sector will further CIBT's efforts in establishing greater career program offerings in China. As overseas degree programs are aggressively growing in China, this acquisition will help CIBT capture a sizable amount of revenue, which is currently flowing to countries in South Asia and Europe instead of CIBT, by redirecting our current and future students enrolled in our overseas study programs in China to various campuses in Canada, which we will own."
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