MIDDLETOWN, Ohio, Oct. 18, 2021 /PRNewswire/ -- Elite Education Group International Limited (Nasdaq: EEIQ) (hereinafter referred to as the "Company"), a provider of comprehensive, one-stop education solutions for Chinese university students interested in study abroad programs in the US and other countries, today announced that as part of its long-term growth plans, it has launched a strategic growth initiative consistent with its goal to become a leading education company. Therefore, the Company has entered into a non-binding letter of intent ("LOI") with in Ameri-Can Education Group Corp. ("Ameri-Can"), an Ohio Corporation that focuses on career-training education.
The Company seeks to expand its educational services business model with educational enterprises that are complementary to and synergistic with its business model. The Company is intent upon highly focused educational targets that expands its capabilities with the appropriate size, geographical reach and student population where the Company can add substantial value and expand its education service market. Pursuant to the LOI, if the acquisition is successful, the Company would acquire 70% of Ameri-Can, with 77.78% of voting rights, at an acquisition price of $2.5 million, with 50% of the payment to be made in cash and 50% in EEIQ common shares at a price of $6.20, with an additional cash investment of $2.5 million to be made in Ameri-Can immediately following the closing of the transaction.
"We are excited to announce this potential acquisition as it would represent a major expansion of our business. We believe that career-training education offers immediate synergies with our existing operations as well as significant long-term growth opportunities. We view this as an important strategic initiative in expanding our business model with a new educational direction and to implement innovative new education programs. If completed, the acquisition will enable us to better serve our student constituency since it will enable us to offer students from China and other Asian countries who wish to study abroad with a broader set of academic and career-training options that more precisely match their interests and career objectives," commented Jianbo Zhang, Chairman and Chief Executive Officer.
The Company views this potential acquisition as an ideal fit and complementary to its current business model. The Company believes that its entry into the US career-oriented community college field will help it to recruit international students from China as well as to help the Company enter the southeast Asian market. It is also consistent with the recent announcement by the Chinese government to emphasize practical, career-training education which includes promoting participation of publicly-listed and industry-leading companies. The Company entering the career-training education field also presents an opportunity for the Company to create strategic partnerships with local Chinese schools which it believes is aligned with China's foreign cooperation goals.
The Company plans to improve the quality of career-training education and to offer a robust externship program to meet what it expects to be a high market demand for technically skilled professionals. Importantly, the Company foresees students in two-year education programs having the opportunity to transfer to highly ranked universities through 'transfer pathway' programs. The Company also anticipates that the career-training educational markets in both the US and China will grow substantially and that with its proven student recruitment capabilities, this potential acquisition represents an excellent growth opportunity for the Company.
The completion of the transaction is subject to due diligence on the part of the Company, the execution of a definitive agreement, the approval of the Company's Board of Directors and the satisfaction of other customary closing conditions. The Company notes that there can be no assurance that a definitive agreement will be entered into or that the proposed acquisition will be consummated.
About Elite Education Group International Limited
Elite Education Group International Limited, through its subsidiary Quest Holding International LLC, provides comprehensive, one-stop education solutions for Chinese students who are interested in study abroad programs in the US and other countries. We develop specific education goals for each student enrolled in our program and provide a safe and structured environment to enable students to pursue their academic goals. Our primary study abroad agreement is with Miami University of Ohio (Regional Campuses), and we maintain residential facilities, a full-service cafeteria, recreational facilities, shuttle buses and an office for the Middletown and Hamilton campuses that provides a wide range of study abroad and post-study services for our students. These facilities are not owned, maintained, operated or are part of MU. 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 consummate the acquisition, and, if consummated, 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 prospectus filed pursuant to Rule 424(b)(4) 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.
Contacts:
Elite Education Group International Limited
+1 513-649-8350
Investor Relations:
Precept Investor Relations LLC
David Rudnick
+1 646-694-8538
Source: Elite Education Group International Limited
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