Mr. Toby Chu reports

GECC SIGNS AGREEMENT TO DIVEST PART OF ITS EDUCATIONAL ASSETS

Global Education Communities Corp. (GECC) has entered into a definitive agreement to sell its Sprott Shaw College subsidiary to a European-based education provider. The sale is subject to customary closing conditions. This all-cash transaction results in postadjustment cash proceeds of approximately $35-million. The net proceeds represent a net cash value of approximately 52 cents per share for GECC shareholders. Most importantly, the net cash value per share excludes GECC's extensive GEC student housing assets.

Following the divestiture of Sprott Shaw College, GECC will retain ownership of Sprott Shaw Language College (SSLC) and Vancouver International College (VIC), which, alongside over 90 other schools in Metro Vancouver, will continue to feed students to the GEC student housing properties.

"We are proud of the success and growth Sprott Shaw College has achieved over the 17.5 years since we took ownership, and we are grateful to the dedicated staff who made it possible," said Toby Chu, chairman, president and chief executive officer of GECC. "This transaction unlocks significant value for our shareholders and marks a strategic pivot for the company. It provides us with a substantial cash position to capitalize on new opportunities in today's economic environment and moves towards resolving the market confusion between our education and real estate divisions."

GECC to focus on GEC student housing portfolio

GECC will concentrate its efforts on the development, construction and operation of its GEC student housing portfolio. This strategic shift will enable the company to capitalize on its position as the largest off-campus student housing provider in British Columbia.

"We are sharpening our focus to become a pure play student housing leader," Mr. Chu observed. "Our model is simple: we acquire, rezone and develop properties in partnership with strategic partners with extensive capital financing experience and construction expertise. After the construction is complete, the properties will be operated by GEC under the GEC Living brand. GEC is the housing provider for 95 public and private postsecondary institutions in Metro Vancouver, accommodating students from across Canada and over 73 countries. GEC currently operates eight rental towers, with completion of construction of the ninth rental tower expected in 23 months. The rezoning process for the 10th and 11th towers is almost complete, and the 12th to 14th towers were approved in 2023, pending amendments.

"This new business model will allow us to be a laser-focused, easily understood business that utilizes our cash resources most efficiently."

About Global Education Communities Corp.

Since 1994, GECC has established itself as a leading player in the Canadian education and student housing sector, serving both domestic and international markets. GECC offers a comprehensive range of services, encompassing business and language colleges, student-centric rental apartments, recruitment services for educational opportunities, and a network of campuses and offices across 40 locations.

Through its subsidiaries, GECC provides a holistic educational experience for over 12,500 students annually. These subsidiaries include established institutions like Sprott Shaw College (founded in 1903), Sprott Shaw Language College, Vancouver International College, and CIBT School of Business & Technology. These subsidiaries offer programs covering health care, business and technology.

GECC also addresses student housing needs through its subsidiary, Global Education City Holdings Inc. (GECH). GECH focuses on developing and managing student-centric rental apartments and education supercentres in Metro Vancouver, boasting a portfolio exceeding $1.3-billion, including operational properties and projects under development.

GECC also owns Global Education Alliance Inc. (GEA), a subsidiary that specializes in placing students in elite North American schools and universities, and Irix Design, a leading design and media communication company based in Vancouver, Canada.

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