KGIC Inc. Announces Plan for Capital Restructuring and $20.2M Debt Settlement - Seite 2

"With the successful execution of the Debt Settlement Plan, Management is confident that the impending financing of the Company will not only accelerate the Company's growth plans but also strengthen our position in the education market," said Alex MacGregor, President and Chief Executive Officer.

It is anticipated that the closing of the transactions contemplated by the Debt Settlement Plan will occur by the end of October 2016. The transactions contemplated by the Debt Settlement Plan, of which the Company has received conditional approval by TSX Venture Exchange, are subject to certain conditions, including obtaining the final approval of the TSX Venture Exchange and all other required governmental, regulatory, and third party approvals, as applicable. The Company can give no assurances that any of the transactions contemplated by the Debt Settlement Plan will be successfully completed. If not completed, the Company's ability to continue as a going concern may be significantly affected.

About KGIC Inc.

KGIC Inc. is an educational organization that provides premium education services at its private English as a Second Language ("ESL") Schools, High School, Career Colleges and Community Colleges across Canada in Ontario and British Columbia. The Company owns and operates twenty-one (21) campuses in Ontario and British Columbia and enrolls approximately 20,000 students yearly in various English language and career training educational courses.

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 relating to the Company's proposed restructuring and debt-settlement plans. 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.