Loyalist Group to spin off student housing business
Ticker Symbol: C:LOY
Loyalist Group to spin off student housing business
Loyalist Group Ltd (C:LOY)
Shares Issued 154,732,423
Last Close 2/6/2015 $0.50
Monday February 09 2015 - News Release
Mr. Andrew Ryu reports
LOYALIST TO SPIN-OFF HOUSING BUSINESS
Loyalist Group Ltd.'s board of directors has approved a strategic plan to spin off its student housing business into a separate entity. The Company is confident that transitioning the housing business into a stand-alone entity will better position it to capitalize on market opportunities and enhance shareholder value, while at the same time allowing Loyalist to focus on its fast-growing ESL, Career-College and Agency businesses.
"After a year-long pilot program we've grown our housing business into a small but profitable revenue-generating operation. Of far greater importance, we've learned how best to grow it substantially and rapidly, and to that end we feel it necessary to spin it off and raise capital separately. Our recent acquisitions of two overseas agencies will allow us not only to significantly grow our education business but also our housing subsidiary," said Chief Executive Officer Andrew Ryu.
"After a year of study we have come to realize that the growth opportunities in student housing are significant, from catering not only to Loyalist's large and fast-growing student body but also those of other schools, not limited to the ESL space. We believe that a large presence in the lucrative student housing market will deliver significant returns to our shareholders and I'm very eager to ramp up our efforts."
Completion of the transaction is subject to customary conditions for a transaction of this nature including, but not limited to, the receipt of all required corporate, regulatory and other third-party approvals. Loyalist intends to maintain an interest in the new housing entity post-spinoff.
We seek Safe Harbor.
© 2015 Canjex Publishing Ltd.
