Loyalist Group Limited

Loyalist Group Limited

January 08, 2014 09:01 ET

Loyalist Group Launches Franchise Program

TORONTO, ONTARIO--(Marketwired - Jan. 8, 2014) - Loyalist Group Limited (the "Company") (TSX VENTURE:LOY) is pleased to announce that it has launched a program to licence its best-in-class English-as-a-second-language curriculum for overseas schools.

Under the program, Loyalist will offer its curriculum and grant its own diplomas to franchisees and their students in exchange for a combination of fees and royalty payments. Loyalist expects that franchising will create substantial high-margin revenues by allowing the Company to earn income from overseas students who choose to study in their own countries.

Loyalist is targeting four countries for the launch of the program: Mexico, China, Turkey and South Korea. Setup fees payable by the franchisee to Loyalist range from $0 to $100,000 while royalty rates range from 5-20% of gross revenues (or $50 per student per month).

Loyalist has already signed 5 franchise agreements, and expects to add several more franchise agreements per quarter over the coming years.

"Franchising is the logical next step in our evolution towards becoming a truly global brand in the ESL market," said CEO Andrew Ryu. "We are easily the No. 1 choice of foreign students who want to come to Canada. But there are millions of other students who will choose to study in their home countries rather than coming to Canada. These students still want a first-rate curriculum and the ability to earn a recognized diploma, and Loyalist can offer both of those things. We expect this to be highly accretive to our income as the cost of setting up and running this business is small relative to the potential revenues."

About Loyalist Group (TSX VENTURE:LOY)

Loyalist Group Limited owns and operates private English as a Second Language (ESL) Schools, Career Colleges and Community Colleges in Toronto, Vancouver, Victoria and Halifax.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This news release includes certain forward-looking 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, but is not limited to, information with respect to prospective financial performance, franchising programs and the potential success thereof, anticipated capital funding and sources, proposed or potential acquisitions, estimated operating and sales costs, estimated market drivers and demand, business prospects and strategy, new markets for growth and financial position. 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.

Any number of important factors could cause actual results to differ materially from these forward-looking statements as well as future results, including but not limited to: risks related to any of the Company's announced acquisitions or securities offerings failing to close or becoming delayed before closing; the Company's ability to successfully implement and operate its franchising program; the Company's reliance on its South Korean contract; carrying on business and activities in international jurisdiction where Canadian laws do not apply; any loss of certain key personnel; levels of student enrolment; delays in rolling out the online education programs; competition in the educational services market; and currency fluctuations. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. Accordingly, readers should not place undue reliance on any forward-looking information or statements contained in this press release. The forward-looking information contained in this press release is made as of the date hereof, and the Company does not undertake to update any forward-looking information that is contained or referenced herein, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws. All subsequent written and oral forward looking information and statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by this notice.

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