Vancouver-based CIBT Education Group Inc. (TSX-V:MBA) has received conditional approval to graduate its listing to the TSX.
The move is expected to boost the number of shareholders and daily trading liquidity for the company that owns private schools in 18 countries, including Vancouver-based Sprott-Shaw Community College.
Last night, Toby Chu, CIBT’s president and CEO, told Business in Vancouver, the company’s investor base has been limited because it was listed on the TSX Venture Exchange.
He noted institutional investors and investment brokers in the U.S. and Canada have been unable to invest in the company because of internal rules and guidelines that prevent them from investing in companies listed on the junior exchange.
The company expects to be listed on the TSX by July 22 under the same stock symbol and maintain its NYSE Amex Exchange listing.
CIBT’s stock rose in late-day trading Monday to as high as $0.92 per share from its open at $0.79 per share before closing up 10.3% to $0.86.
Last fall, the company announced expanded relationships with educational institutions in China and Vietnam. And in December, it announced its $9 million acquisition of King George International College (KGIC), which closed in March.
Its revenue for the year ending August 31, 2009 rose 38% to $44.6 million from $32.3 million. Revenue for the six-month period ending February 28, 2010 rose 10.5% to $22.5 million from $20.4 million. The KGIC acquisition is expected to boost revenue by about $16 million this year.
With $12 million in cash and plans to raise an additional $15 million this year, the company continues plans to expand through acquisition.
Said Chu: “We get one or two inquiries every week, so there are a lot of schools for sale, or interested to join us, but we haven’t identified any that has peaked any strong interest.”