VANCOUVER, BC / ACCESS Newswire / July 7, 2025 / Global Education Communities Corp. (TSX:GEC)(OTCQB:GECSF) ("GECC" or the "Company") today announced it has entered into a definitive agreement to sell its Sprott Shaw College subsidiary to a European-based education provider. The sale is subject to customary closing conditions. This all-cash transaction results in post-adjustment cash proceeds of approximately $35 million. The net proceeds represent a net cash value of approximately $0.52 per share for GECC shareholders. Most importantly, the net cash value per share excludes GECC's extensive GEC® student housing assets.
Following the divestiture of Sprott Shaw College, GECC will retain ownership of Sprott Shaw Language College (SSLC) and Vancouver International College (VIC), which, alongside over 90 other schools in Metro Vancouver, will continue to feed students to the GEC® student housing properties.
"We are proud of the success and growth Sprott Shaw College has achieved over the 17.5 years since we took ownership, and we are grateful to the dedicated staff who made it possible," said Toby Chu, Chairman, President, and CEO of GECC. "This transaction unlocks significant value for our shareholders and marks a strategic pivot for the Company. It provides us with a substantial cash position to capitalize on new opportunities in today's economic environment and moves towards resolving the market confusion between our education and real estate divisions."
GECC to Focus on GEC® Student Housing Portfolio
GECC will concentrate its efforts on the development, construction, and operation of its GEC® student housing portfolio. This strategic shift will enable the Company to capitalize on its position as the largest off-campus student housing provider in British Columbia.
"We are sharpening our focus to become a pure-play student housing leader," Mr. Chu observed. "Our model is simple: we acquire, rezone, and develop properties in partnership with strategic partners with extensive capital financing experience and construction expertise. After the construction is complete, the properties will be operated by GEC® under the GEC® Living brand. GEC® is the housing provider for 95 public and private post-secondary institutions in Metro Vancouver, accommodating students from across Canada and over 73 countries. GEC® currently operates eight rental towers, with completion of construction of the 9th rental tower expected in 23 months. The rezoning process for the 10th and 11th towers is almost complete, and the 12th to 14th towers were approved in 2023, pending amendments.
"This new business model will allow us to be a laser-focused, easily understood business that utilizes our cash resources most efficiently."
About GECC:
Since 1994, GECC has established itself as a leading player in the Canadian education and student housing sector, serving both domestic and international markets. GECC offers a comprehensive range of services, encompassing business and language colleges, student-centric rental apartments, recruitment services for educational opportunities, and a network of campuses and offices across 40 locations.
Through its subsidiaries, GECC provides a holistic educational experience for over 12,500 students annually. These subsidiaries include established institutions like Sprott Shaw College (founded in 1903), Sprott Shaw Language College, Vancouver International College, and CIBT School of Business & Technology. These subsidiaries offer programs covering healthcare, business, and technology.
GECC also addresses student housing needs through its subsidiary, Global Education City Holdings Inc. ("GECH"). GECH focuses on developing and managing student-centric rental apartments and education super-centres in Metro Vancouver, boasting a portfolio exceeding $1.3 billion, including operational properties and projects under development.
GECC also owns Global Education Alliance Inc. ("GEA"), a subsidiary that specializes in placing students in elite North American schools and universities, and Irix Design, a leading design and media communication company based in Vancouver, Canada.
Visit GECC online at www.GEChq.com or www.GECliving.com to explore our services and watch our corporate video.
Toby Chu
Chairman, President & CEO
Global Education Communities Corp.
Investor Relations Contact: 1-604-871-9909 extension 319 or | Email: info@GEChq.com
FORWARD-LOOKING STATEMENTS
Some statements in this news release contain forward-looking information (the "forward-looking statements") about the Company and its plans. Forward-looking statements are statements that are not historical facts. Forward-looking statements in this news release include, without limitation, the ability of the Company to capitalize on new opportunities, and the expectation that concentrating its efforts on the development, construction, and operation of its GEC® student housing portfolio will enable the Company to capitalize on its position as the largest off-campus student housing provider in BC. Forward-looking statements are subject to various risks, uncertainties and other factors (collectively, the "Risks") that could cause GECC's actual results or achievements to differ materially from those expressed in or implied by forward-looking statements. The Risks include, without limitation, that the Company is not able to capitalize on new opportunities due to reasons including but not limited to economic conditions and competition from other parties, and other risks identified in the MD&A forming part of the 2025 Q2 management's discussion and analysis. Forward-looking statements are based on the beliefs, opinions and expectations of GECC's management at the time they are made, and the Company does not assume any obligation to update its forward-looking statements if those beliefs, opinions or expectations, or other circumstances should change, except as may be required by law.
SOURCE: Global Education Communities Corp.
View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/banking-and-financial-services/gecc-signs-agreement-to-divest-part-of-its-educational-assets-1046110
