MIDDLETOWN, Ohio, Jan. 24, 2022 /PRNewswire/ -- Elite Education Group International Limited (Nasdaq: EEIQ), (the "Company" or "Elite Education Group"), a provider of comprehensive education solutions for domestic and international students interested in college and university programs in the US, Canada and the UK, today announced that on January 15, 2022, the Company's wholly-owned subsidiary, Highrim Holding International Limited, entered into agreements with Canada EduGlobal Holdings Inc. ("Global") and Richmond Institute of Languages Inc. d.b.a. EduGlobal College, pursuant to which it acquired 80% of the issued and outstanding shares of EduGlobal College from Global.
The initial purchase price for EduGlobal College was C$1.0 million (US$0.8 million), and the Company assumed up to C$200,000 (US$160,000) in certain liabilities of the college. In addition, the Company agreed to invest an additional C$3.0 million (US$2.4 million) over a two-year period in EduGlobal College to be used for the enhancement of its educational programs, increased student enrollment and general campus improvements. Further, on the three-year anniversary of the agreements, if EduGlobal College has not achieved certain financial and student enrollment metrics, the Company has the right to sell its 80% equity position back to Global for C$1.0 million (US$0.8 million) plus the sum of its investments in the college, up to an additional C$3.0 million (US$2.4 million).
"We are pleased to take this next step in our corporate growth by expanding our business model into the Canadian market with our acquisition of an 80% equity ownership position in EduGlobal College," said Jianbo Zhang, Chairman and Chief Executive Officer of Elite Education Group. "We believe that the acquisition is a key step in our strategic growth plan as it achieves geographical diversification as an owner and operator following our acquisition last month of the rights to a controlling interest in Davis College in the US. It also provides us with an opportunity to further develop EduGlobal's innovative educational programs of English proficiency training and academic programming that is student-centric and are the very highest in academic quality."
"A vital component of our mission is in the name of EduGlobal College itself, which is to engage in global education. We are intent upon having a highly diverse student population for the college to include numerous countries in South America, Europe, Africa, and Asia as well as students from Canada and the US. Through our experience with institutions in the US, we believe in specialized programs for international, non-native English-speaking students so that they may ultimately achieve bachelor's degrees. We believe that EduGlobal College is unique in providing English proficiency and a "transfer pathway" for students from around the world who wish to pursue academic degrees in Canada."
"We are optimistic that our investment in EduGlobal College will result in a sound return on investment for the Company. A key element of our strategic growth plan is to continue to opportunistically target educational institutions that meet our acquisition criteria across different regions to create educational experiences for both domestic and a wide array of international students," concluded Mr. Jianbo Zhang.
Elite Education Group plans to prioritize international recruiting to include a large number of countries around the world to further diversify the student body at EduGlobal College. The Company also plans further expand the extensive language proficiency programs at EduGlobal College that provide English language support for international students in order to prepare them for academic pursuits that could lead them to university degree programs in Canada.
In connection with the acquisition, EduGlobal College entered into a three-year employment contract with Mr. Sylvester Chen, the Director of EduGlobal College prior to this transaction, to serve as its Chief Executive Officer. Prior to founding EduGlobal College in 2019, Mr. Chen was Senior International Consul to the President's Executive Council at the University of Northern British Columbia, Canada, and previously to that, was the university's Director of International Education. Prior to that, Mr. Chen was Administrative Director for the Office of International Initiative, Faculty of Education, at Brock University, Canada. Mr. Chen received a bachelor's degree in China, and earned a second bachelor's degree as well as a master's degree in Educational Administration and Leadership from Brock University. Mr. Chen is well-recognized in the international education sector with over 20 years of professional experience. The Board of EduGlobal College will consist of three members, Mr. Chen and two executives from the leadership team of the Elite Education Group.
"We anticipate a strong collaboration with Elite Education Group to optimize our students' academic experience as well as their educational options. The mission of EduGlobal College is to deliver niche post-secondary education programs, foster synergistic public-private education partnerships, and attract a highly diverse student population from around the world. We feel confident that with Elite Education Group as our partner, we will achieve the goals of our mission," said Sylvester Chen, Chief Executive Officer of EduGlobal College.
About EduGlobal College
EduGlobal College is a private college located in the metro area of Vancouver, British Columbia, Canada. EduGlobal College provides English language programs for international students who are seeking academic and career advancement and specializes in English for Academic Purposes (EAP) programs (also known as English as a Second Language, or ESL, programs) that focus on helping international students acquire the advanced competencies in academic English that will be necessary for them to complete their degree programs. In tandem with its EAP program, EduGlobal College offers first-year university courses as well as a Master's Academic Preparation Program to help prepare international students who have completed a bachelor's degree and who aspire to pursue graduate studies at a Canadian university.
About Elite Education Group International Limited
Elite Education Group International Limited ("Elite Education" or the "Company"), through its subsidiaries Quest Holding International LLC and Highrim Holding International Limited, provides comprehensive education solutions for domestic and international students interested in university and college degree programs in the US, Canada and the UK. The Company has the right to acquire the equity ownership in Davis College in Toledo, Ohio. It has recently acquired 80% of EduGlobal College, based in British Columbia, Canada, which focuses on English proficiency educational programming. In addition, the Company has a recruiting relationship with the regional campuses of Miami University of Ohio ("MU"), where it maintains residential facilities, a full-service cafeteria, recreational facilities, shuttle buses and an office for the regional campuses that provides study abroad and post-study services for its students; these facilities are not owned, maintained, operated or are a part of MU. The Company also acts as a recruiting agent for the University of the West of Scotland (through The Education Group (London) Ltd) and Coventry University, both of which are located in the United Kingdom. For more information, please visit www.eei-global.net.
Safe Harbor Statement
Certain of the statements made in this press release are "forward-looking statements" within the meaning and protections of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, capital, ownership or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements in this press release include, without limitation, the Company's ability to successfully integrate the acquisition with its existing services. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as "may," "will," "anticipate," "assume," "should," "indicate," "would," "believe," "contemplate," "expect," "estimate," "continue," "plan," "point to," "project," "could," "intend," "target" and other similar words and expressions of the future.
All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our most recent Form 20-F and otherwise in our SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at http://www.sec.gov. We have no obligation and do not undertake to update, revise or correct any of the forward-looking statements after the date hereof, or after the respective dates on which any such statements otherwise are made.
Precept Investor Relations LLC
Source: Elite Education Group International Limited
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