- Global Education Communities Corp. (OTCQB: GECSF) sells Sprott Shaw College for $35 million in cash.
- GECC retains Sprott Shaw Language College, Vancouver International College, and its GEC® student housing portfolio.
- Focus shifts towards expanding its student housing operations in British Columbia.
Global Education Communities Corp. (OTCQB: GECSF) has entered into an agreement to sell its Sprott Shaw College subsidiary to a European education provider for approximately $35 million in cash. The transaction values the sale at $0.52 per share in net cash for shareholders and excludes the GEC® student housing assets.
Post-divestiture, GECC will maintain ownership of Sprott Shaw Language College (SSLC) and Vancouver International College (VIC). These institutions, alongside over 90 others in Metro Vancouver, will continue supporting the company's extensive GEC® student housing portfolio.
The strategic focus of GECC will now pivot towards being a pure-play student housing leader. The company operates eight existing rental towers and is planning to expand with six additional towers in various stages of development. As the largest off-campus student housing provider in British Columbia, GECC serves 95 post-secondary institutions, meeting the housing needs of both domestic and international students from over 73 countries.
Toby Chu, Chairman, President, and CEO of GECC, stated, "This transaction unlocks significant value for our shareholders and marks a strategic pivot for the company. It strengthens our position in the student housing market, where we will focus on development, construction, and operation of our properties in partnership with experienced capital and construction providers."
