KGIC Inc LGLTF

Re: Government Rergulation & the EQA

[jumpth3shark]

This is good news for Loyalist because now its competition will face tougher regulations by the B.C. government.

It's nice that Loyalist is now the biggest player in the private ESL industry in Canada. Adding additional certifications like B.C.'s Education Quality Assurance designation only stands to bolster the company's stellar reputation.

The main purpose of this legislation is to provide more transparency in the industry because unfortunately a lot of international students get taken advantage of by shady institutions or "schools" and ultimately have little to no recourse against them.


Whenever there is a fragmented market, the dominant player is usually the big winner when overall standards increase because it has the resources to comply, it will be able to consolidate weaker players more easily/cheaply and it will pick up business from any competitors who close their doors.

It would be nice if Ontario followed suit. This should definitely drive more traffic to Loyalist Group schools in B.C.


The EQA designation is ONLY A GOOD initiative for Loyalist. The implications are as follows:

-First and foremost, if anyone is concerned about Loyalist schools getting EQA certifications, there is a stand procedure in place to qualify. The majority of Loyalist schools have already been EQA designated and the remainder will follow shortly. The program itself was only introduced in 2009, and has been optional since its inception. Schools must be compliant by December 2015. Loyalist has more than enough capital and resources to accomplish this. The risk is nil.

- The schools that cannot meet the requirements will close and lose their students. Loyalist will be able to absorb these students. Since British Columbia is one of two provinces where the majority of ESL students study, this is very good for Loyalist

- The schools that cannot afford to get certified, Loyalist can buy on the cheap in a fire sale because they're going to be closing their doors anyway. The end of 2015 might be a very exciting time for Loyalist

- The British Columbia government has committed to increasing the number of international students by 50% by 2016. There is going to be a massive influx of students to British Columbia over the next couple of years, which Loyalist should benefit from, especially through re-branding and consolidation to strengthen the LOYALIST BRAND