KGIC Inc. Announces Proposed $9.725M Loan Facility - Seite 2

"We believe that we have proposed a debt restructuring plan that is beneficial to the Company and its stakeholders", said Alex MacGregor, President and Chief Executive Officer of the Company. "Provided that we are able to satisfy the conditions to completion of the Loan in the time mandated by the lender, management is confident that successful completion of the Debt Settlement Plan and the Loan will preserve value for the Company and its stakeholders and will provide the working capital needed to work towards the accomplishment of our objectives. Based on discussions that we have had with debtholders to date, we have received confirmation that holders of approximately $19.4 million, or 70%, of the Company's existing outstanding debt, including Bank of Montreal, are agreeable to converting their debt in accordance with the terms of our Debt Settlement Plan".

Completion of the Loan is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSXV (including in respect of the proposed Waiver) 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 or the Loan 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 concerning the Term Facility and the Working Capital Facility and the proposed completion thereof. 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.