Bay Street News

KGIC Inc. Appoints New VP Finance and Internal Control

TORONTO, ONTARIO–(Marketwired – July 7, 2016) – KGIC Inc. (TSX VENTURE:LRN) (“KGIC”), a leading provider of premium education services at its private English as a Second Language (“ESL”) Schools, High School, Career Colleges and Community Colleges, High School in Ontario and British Columbia., today appointed Shahzad Rashid, a Chartered Public Accountant in both private and public sectors, to the role of vice president, finance and Internal Control. A seasoned executive with extensive operational cost control and financial management experience, Shahzad joins KGIC to support the company’s profitability strategy, organic and external growth targets, as well as optimize operating processes. His new duties begin Monday, July 11, 2016.

“Shahzad is an extraordinarily talented and dedicated professional,” said Alex MacGregor, CEO, KGIC Inc. “He understands our business and will be invaluable as we continue to develop a solid financial foundation for the company. We’re thrilled to welcome him on-board and are confident that he will fit extremely well with the new performance-driven culture at KGIC.”

Shahzad comes to KGIC from Magna International, where he served as Manager of Internal Audit. While at for Magna, Shahzad was responsible for increasing the effectiveness of the internal audit department, improving global risk management process and improving controls over the global operations, financial reporting, information system and compliance. He headed several global investigations, internal audits and consulting projects and also advised divisions across the world on improvement of controls and application of complex accounting issues.

Shahzad started his career as an auditor with Deloitte, PwC and KPMG and holds a CPA and CGMA designations, as well as postgraduate certificates at Harvard University in Enterprise Risk Management, Audit Management, Frauds, Corporate Governance and updated COSO Framework.

In addition, the Company has accepted the resignation of Robert Morrison from the Board of Directors.

About KGIC Inc.

KGIC Inc. KGIC 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, High School in Ontario and British Columbia. The Company owns and operates twenty-one (21) campuses across Canada and enrolls approximately 20,000 students yearly in various English language and career training educational courses. KGIC has established approximately twenty-five (25) ESL-Pathway agreements with Colleges and Universities in Canada

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 ability of Company to continue as a going concern. 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 relating to: the Company’s ability to raise sufficient additional capital prior to December 31, 2015 in order to allow it to continue as a going concern on terms acceptable to the Company or at all; the Company’s ability to service its outstanding indebtedness and the impact of that indebtedness on the Company’s ability to raise additional capital, fund and maintain operations or meet business objectives; the Company’s ability to comply with the terms of the amended forbearance agreement with Bank of Montreal and the consequences of any breach or default thereunder; the Company’s ability to successfully exit forbearance; the fact that new management and directors of the Company, including the recently appointed Chief Executive Officer and Chairman, have had limited experience with the Company and its operations and have not had sufficient time to fully analyze all facets of the Company’s business; the impact of negative or unfavourable rumours in the marketplace on the Company’s brands and student enrollment; any of the Company’s announced or proposed acquisitions failing to close or becoming delayed before closing; 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 online education programs; delays to the completion of any planned initiatives or the inability to complete those initiatives; 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 is expressly qualified in its entirety by this notice.

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.

KGIC Inc.
Dr. Alex Macgregor
(416) 969-9800
amacgregor@loyalistgroup.com