RE:RE:RE:RE:Look at L2 with orders on LRN (old LOY)LRN sold UHAK and achieved over 15% growth in Q3
KGIC Announces Sale of Uhak.com and General Business Updateless than 1 minute ago by Marketwire KGIC Inc. ("KGIC" or the "Company") (TSX VENTURE: LRN) announces the sale of Uhak.com to an arms-length third party, substantial progress on the Company's $15 million Optimization Plan, and other matters as noted below.
"The sale of Uhak.com allows us to focus on our core business of providing education in Canada. I am also pleased to report that our Optimization Plan has now achieved more than $12 million of its targeted $15 million of cost savings on an annualized run-rate basis, thanks to the hard work and dedication of our team. Importantly, the operational restructuring and cost savings initiatives did not compromise our business pipeline - student registration activity during September and October 2015 are up more than 15% over the average monthly bookings achieved during the first eight months of 2015 (i.e., pre-Optimization Plan), returning to levels we experienced during 2014. We are now proceeding to the final phase of our turnaround plan, which is developing a strategy to exit forbearance with our senior lender, and are encouraged by the various discussions we have underway," said Shawn Klerer, Chief Executive Officer.
Sale of Uhak.com
The sale of Uhak.com closed on October 28, 2015, with the purchaser assuming all net liabilities, inclusive of severance obligations and forgiveness of certain intercompany amounts which were owed by the Company to Uhak.com. At June 30, 2015, the Company reported $1.3 million of consolidated net liabilities and year-to-date net losses of $0.83 million attributable to Uhak.com.
Fifth stage closing of non-brokered private placement
The Company has completed a fifth stage closing of its previously announced non-brokered private placement for $50,000, consisting of 5,000 Series A preferred shares. No finders fees were paid in connection with the fifth stage closing, and no common share purchase warrants were issued in connection with this tranche.
About KGIC Inc.
KGIC Inc. owns and operates private English as a Second Language (ESL) Schools, Career Colleges and Community Colleges in Toronto, Vancouver, and Victoria.
Forward-Looking Information and Statements
This news release includes certain forward-looking information and statements within the meaning of Canadian securities laws. Such forward-looking information and statements are not representative of historical facts or information or current condition, but instead represent only the Company's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company's control. Generally, such forward-looking information or statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken, "will continue", "will occur" or "will be achieved". The forward-looking information contained herein includes information concerning the proposed change of the Company's name and proposed changes to its operations and organizational structure. By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements.