Mr. Toby Chu reports

GECC PROVIDES UPDATE ON THE ATMOSPHERE PROJECT IN RICHMOND, BC

The B.C. Court of Appeal has overturned a lower court ruling, finding Global Education Communities Corp.'s Atmosphere project's commercial lender in breach of contract related to financing a real estate development project in Richmond, B.C. The decision reverses, in part, a previous ruling by the Supreme Court of British Columbia.

Background on the investment and dispute

In March, 2018, a subsidiary of Global Education, GEC (Richmond) GP Inc., and Global Education City (Richmond) Limited Partnership prepurchased interests in an office tower and a residential rental tower within the Richmond development from a Vancouver-based developer.

GEC Richmond provided a $60-million deposit for the two towers and registered a mortgage on the property to secure the funds.

In November, 2019, the developer secured a construction loan from a Toronto-based commercial lender to finance the project's construction.

The dispute arose in March, 2020, when, shortly after the start of construction financing, the lender issued a cessation financing notice following the onset of the COVID-19 pandemic and subsequent border lockdowns.

The developer was unable to secure replacement financing during the pandemic period, leading to the project's stall and eventual entry into proceedings under the Companies Creditors' Arrangement Act (Canada). As a result, GEC Richmond substantially wrote off the investment by fiscal year-end 2022.

In October, 2022, GEC Richmond commenced legal action against the lender for breach of contract. The developer filed its legal action shortly thereafter. After the ruling against GEC Richmond and the developer by the Supreme Court of British Columbia in August, 2024, the matter was appealed.

On Sept. 22, 2025, the Court of Appeal for British Columbia overturned, in part, the lower court's decision, finding the lender in breach of the loan agreement.

"We are gratified that the Court of Appeal recognized the lender's breach of the loan agreement," said Toby Chu, chairman, president and chief executive officer of Global Education.

Further material developments will be reported as further legal activities take place.

About Global Education Communities Corp.

For nearly 39 years, Global Education has been a leader in Canada's education and student housing landscape. Serving a vibrant community of nearly 10,000 domestic and international students annually, Global Education operates across 24 student housing apartments, campuses and offices in Canada and abroad.