Afya Limited Announces Medical Seats Increase in Centro Universitário São Lucas

Rhea-AI Summary

Afya Limited (NASDAQ: AFYA) announced the approval of an additional 28 medical school seats at Centro Universitário São Lucas in Ji-Parana, Rondônia, by the Secretary of Regulation and Supervision of Higher Education of the Ministry of Education. This authorization increases Afya's total approved seats to 2,759, potentially accommodating approximately 19,865 students. The earn-out for this approval amounts to R$800,000 per seat, with payments structured over the next year.

Positive

• Increase of 28 approved medical school seats enhances educational capacity.
• Potential to accommodate around 19,865 students at maturity.

Negative

• Earn-out of R$800,000 per approved seat may strain cash flow.

NOVA LIMA, Brazil--(BUSINESS WIRE)-- Afya Limited or Afya (Nasdaq: AFYA) today announced that the Secretary of Regulation and Supervision of Higher Education of the Ministry of Education (“MEC”) authorized the increase of 28 seats of Centro Universitário São Lucas, in Ji-Parana located in the state of Rondônia.

The earn-out related to the seats approval is R$800 thousand per seat, adjusted by the CDI rate from the closing until the payment date, of which: (i) 50% is payable in 30 days, and (ii) 50% is payable in cash in two equal installments through 2024.

With the authorization, Afya reaches 2.759 approved seats, which will represent around 19.865 students at maturity, considering FIES and PROUNI. In September 30, 2021, Afya had 15.977 medical students.

About Afya:

Afya is a leading medical education group in Brazil based on number of medical school seats, delivering an end-to-end physician-centric ecosystem that serves and empowers students and physicians to transform their ambitions into rewarding lifelong experiences from the moment they join us as medical students through their medical residency preparation, graduation program, continuing medical education activities and offering digital products to help doctors enhance their healthcare services through their whole career.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220318005231/en/

Investor Relations Contact:

Afya Limited

ir@afya.com.br

Media Contact:

Cíntia Moraes Marin

cintia.marin@afya.com.br

Source: Afya

FAQ

What recent approval did Afya Limited receive regarding medical school seats?

Afya Limited received approval for an additional 28 medical school seats at Centro Universitário São Lucas.

How many total medical school seats does Afya now have?

With the new approval, Afya has a total of 2,759 approved medical school seats.

What is the financial impact of the new medical school seats for Afya?

The earn-out related to the new seats is R$800,000 per seat, affecting cash flow with payments over the next year.

How many students can Afya potentially accommodate with the new seats?

The new seats could potentially accommodate around 19,865 students when fully utilized.