EpicQuest Education Acquires Remaining Stake in EduGlobal College Achieving 100% Ownership Position

Rhea-AI Summary

EpicQuest Education Group International Limited (NASDAQ: EEIQ) announced the acquisition of the remaining 20% equity in EduGlobal College, finalizing full ownership. The transaction, valued at C$250,000 (US$186,131), enhances EpicQuest's strategic expansion in the Canadian education market. Previously, Highrim Holding International Limited, a subsidiary of EpicQuest, acquired 80% of EduGlobal for C$1 million (US$800,000) in January 2022. The complete ownership aims to leverage synergies and increase long-term growth potential in the provision of English language proficiency programs, significantly targeting international students from various regions. The college's recent Education Quality Assurance (EQA) designation in British Columbia further supports its capability to host international students and enhances its recruitment efforts.

Positive

• Full ownership of EduGlobal College enhances EpicQuest's control over operations.
• Strategic acquisition supports international expansion in the Canadian market.
• EduGlobal's EQA designation facilitates hosting international students, expanding market reach.
• Significant growth potential identified through synergies with existing educational operations.

Negative

• None.

Consolidation Reinforces EEIQ's International Expansion Strategy in Canadian Market

MIDDLETOWN, Ohio, April 6, 2023 /PRNewswire/ -- EpicQuest Education Group International Limited (NASDAQ: EEIQ), ("EpicQuest Education" or the "Company"), a provider of comprehensive education solutions for domestic and international students seeking college and  university degrees in the US, Canada and the UK, today announced that on March 31, 2023, its wholly-owned subsidiary that operates in the Canadian market, Highrim Holding International Limited ("Highrim"), acquired 20% of the remaining equity of EduGlobal College ("EduGlobal") from Canada EduGlobal Holdings Inc. ("Global").

The acquisition price for the remaining 20% of the equity in EduGlobal was C$250,000 (US$186,131). On January 15, 2022, Highrim acquired 80% of the issued and outstanding shares of EduGlobal from Global for C$1.0 million (US$0.8 million) and the assumption of up to C$200,000 (US$160,000) in liabilities. The acquisition of the 20% of the remaining equity in EduGlobal results in the college being 100% owned by Highrim.

"The consolidation of our ownership in EduGlobal College further underscores our international expansion strategy as well as our commitment to the Canadian markets," said Jianbo Zhang, Chairman and CEO. "EduGlobal College's distinctive educational English language proficiency programs draw top students who are seeking bachelor and post-graduate degrees. Further, we provide a seamless pathway for our students to attain undergraduate university and graduate degrees."

"We are excited to bring EduGlobal College fully under the EpicQuest Education umbrella and believe that the college will benefit from the synergies generated by our other educational operations, with the college having significant potential for long-term growth," CEO Jianbo Zhang concluded.

EpicQuest Education is committed to a strategic growth plan of international expansion. As was previously announced, EduGlobal was approved for Education Quality Assurance (EQA) designation in British Columbia which allows it to host international students on study permits and allows the college to participate in overseas recruitment and partnership events organized by the federal Department of Global Affairs Canada. This designation bolsters our mission to attract a diverse student body from China, India, LATAM, the ASEAN countries and other regions and internationalize the EduGlobal campus.

In addition, with the EQA designation as a requisite, EduGlobal was placed on the Designated Learning Institution (DLI) list, which is maintained by Immigration, Refugees and Citizenship Canada (IRCC). Institutions on the DLI list may host international students on study permits which allows an international student to participate in a program of study in Canada that is longer than six months. The EQA designation and DLI listing are important designations that support EduGlobal's international expansion and further enhances its image and reputation to successfully recruit international students.

About EduGlobal College

EduGlobal College ("EduGlobal") is a private college located in the metro area of Vancouver, British Columbia, Canada. EduGlobal 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 are necessary for them to complete their degree programs. In tandem with its EAP program, EduGlobal 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 EpicQuest Education Group International Limited

EpicQuest Education Group International Limited ("EpicQuest Education" or the "Company") provides comprehensive education solutions for domestic and international students seeking university and college degrees in the US, Canada and the UK. The Company owns and operates EduGlobal College, based in British Columbia, Canada, which focuses on English proficiency educational programming for students pursuing academic degrees. The Company is a 70% owner of and operates Davis College, a career training college located in Toledo, Ohio. In addition, the Company has a recruiting relationship with the Miami University Regional Campuses, 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 Miami University. The Company is also 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 UK. For more information, please visit https://www.epicquesteducation.com/.

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 in this press release include, without limitation, the Company's ability to implement its international strategy as described. 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. 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.

Contacts:

EpicQuest Education Group International Limited
+1 513-649-8350
ir@eei-global.net

Investor Relations:

Precept Investor Relations LLC

David Rudnick
+1 646-694-8538
david.rudnick@preceptir.com

Source: EpicQuest Education Group International Limited

 

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SOURCE EpicQuest Education Group International Limited

FAQ

What is the impact of EpicQuest Education's acquisition of EduGlobal College?

The acquisition allows EpicQuest Education to fully control EduGlobal College, potentially enhancing operational efficiencies and market reach in Canada's education sector.

How much did EpicQuest pay for the remaining stake in EduGlobal College?

EpicQuest Education paid C$250,000 (US$186,131) for the remaining 20% equity in EduGlobal College.

Why is the EQA designation important for EduGlobal College?

The EQA designation enables EduGlobal College to host international students on study permits and participate in global recruitment efforts, increasing its attractiveness to potential students.

What are the future prospects for EduGlobal College under EpicQuest Education?

EduGlobal College is expected to benefit from synergies with EpicQuest’s other educational services, positioning it for significant long-term growth.