KGIC Inc LGLTF

17 million upto 20 million to create more shareholder value

[alister33]

Loyalist Announces New $18.5 Million Credit Facility
Loyalist might have had 5 million on hand then arranged a new credit facility expires on November 17, 2019 and is comprised of a $3.5 million revolving operating facility and a $15 million term loan acquisition facility. The facilities are being provided by the Bank of Montreal. Both facilities bear interest at the Canadian Dollar Prime Rate plus 1.25% to 1.75%, depending on the Company's debt to EBITDA ratio.

Then Loyalist to Acquire Largest Agency in South Korean UHak which had consolidated revenue of $10.3 million, Loyalist will pay $8.1 million for Uhak, of which $5.3 million will be paid in cash

leaving 18.2 million unused then

Loyalist to acquire second agency in South Korea
Kim Okran had consolidated revenue of $4.7 million and adjusted EBITDA of $0.9 million for the 12-month period ended December 2013. Kim Okran's revenue is based upon commissions earned on gross student tuition fees of approximately $20.0 million.

Loyalist will pay $4.65 million for Kim Okran, of which $3.9 million will be paid in cash, subject to certain closing adjustments, and $0.75 million will be paid through the issuance of 1,442,307 Loyalist common shares at a price of $0.52 per share, with 75% of such shares being held in escrow for a period up to 12 months following closing as security for certain defined post-closing adjustments. The parties expect to complete the transaction on or around January 27, 2015.

Leaving approx 10 mil upto 13.55 left cash for other mergers and acquisitions then added another 7 million totalling 17 million upto 20 million to create more shareholder value .

What is next ? after the spin off ? the companies value is going to be huge mergers and acquisitions maybe a buy out in the works after the spin off?


Lost of cash on hand