EpicQuest Education Announces Agreement that Substantially Expands its International Student Engagement from the Southeast Asian and South American Markets

Rhea-AI Summary

EpicQuest Education (NASDAQ: EEIQ) announced that Davis University has entered into a Transfer Articulation Agreement with The Center of Advanced Studies (CAS) in Tokyo, effective December 1, 2024. The agreement establishes pathways for international students from five Southeast Asian and South American colleges to complete business degrees at Davis University. The company estimates a potential 20-25% increase in international student enrollment, with students possibly starting from Spring 2025. CAS operates programs in Japan, Myanmar, Sri Lanka, and Ecuador, with more locations under development. This agreement aligns with EEIQ's internationalization strategy to expand enrollment and academic programming.

Positive

• Projected 20-25% increase in international student enrollment
• Geographic expansion into new Southeast Asian and South American markets
• Immediate implementation with potential students starting Spring 2025
• Access to multiple international campuses through single agreement

Negative

• None.

Insights

Market Research Analyst

This strategic agreement marks a significant expansion into key emerging education markets. The potential 20-25% increase in international student enrollment represents substantial revenue growth potential for EEIQ, especially given the higher tuition fees typically charged to international students. The partnership with The Center for Advanced Studies provides access to five established educational institutions across Southeast Asia and South America, creating a reliable student pipeline.

The timing aligns with growing demand for US higher education from these regions, particularly in business studies. The Spring 2025 implementation timeline allows for proper operational preparation while providing near-term growth visibility. The foundational programs mentioned could create additional revenue streams through academic licensing and program exports. However, execution risks include regulatory compliance across multiple jurisdictions and the need to scale support services for an increased international student population.

EEIQ Estimates that the New Agreement has the Potential to Increase its International Student Enrollment by at Least 20%

MIDDLETOWN, Ohio, Nov. 20, 2024 /PRNewswire/ -- EpicQuest Education Group International Limited (Nasdaq: EEIQ), ("EpicQuest Education", "EEIQ" or the "Company"), a provider of higher education for domestic and international students in the US, Canada and the UK,  today announced that Davis University recently entered into a Transfer Articulation Agreement (the "Agreement") with The Center of Advanced Studies, based in Tokyo, Japan, that operates international study programs in numerous schools in Southeast Asia and South America. The Agreement, effective December 1, 2024, establishes a pathway for international students from five Southeast Asian and South American colleges and universities to complete associate and bachelor's degrees in business at Davis University.

"We believe that this Agreement can lead to a 20-25% increase in international student enrollment since it provides an excellent pathway for students from Southeast Asian countries to study in the US at Davis University," commented Diane Brunner, President of Davis University. "The Agreement also enables us to more easily enter countries in the Southeast Asian and South American markets and develop new relationships. It will also give us the opportunity to establish our foundational programs that exports our academic programming and that creates a sizeable international student recruiting pool."

The Agreement between Davis University ("Davis") and The Center for Advanced Studies ("CAS") establishes a transfer pathway by facilitating the transfer of credits for students from colleges and universities where CAS operates its International Studies Program to enroll in Davis' associate and bachelor's degree programs for business. International students from the CAS International Studies Program may start coming to Davis as soon as the Spring 2025 semester.

CAS offers its International Studies Program at multiple campuses including at Kanda Institute of Foreign Languages (Tokyo, Japan), The American University of Yangon (Yangon, Myanmar), Nawaloka College of Higher Studies (Colombo, Sri Lanka) and SISINTEL, S.A., (Guayaquil, Ecuador), and the Advanced University Programs International Institute (Cuenca and Guayaquil, Ecuador). Other sites are under development for CAS' International Studies Program with partner colleges in other countries.

EpicQuest Education's Strategy of Internationalization

EpicQuest Education believes that its collaborative programs for Davis University and EduGlobal College, its two owned and operated institutions of higher learning, are a key element of its internationalization strategy to expand its student enrollment and academic programming. The Company's strategy provides enhanced globalized learning and enriched multicultural experiences that can help students reach their full potential and better prepare them for careers in the global economy. Further, EpicQuest Education's strategic growth plan has increased its international student enrollment in recent periods which can lead to strong and sustainable financial results.

About Davis University

Davis University ("Davis") was founded in 1858 and is a private career-training University located in Toledo, Ohio. Davis offers a specialized professional career training curriculum in numerous fields, and its mission is to provide marketable skills that enhance the employability of its graduates. Davis offers coursework flexibility to ensure program success as well as externship opportunities that provide its student population with real-world skill sets prior to graduation. In addition to offering numerous associates degrees, and a bachelor's degree in business, Davis has agreements with several four-year US universities for 'transfer pathways' that pave the way for its associate degree students to gain admission with the ability to transfer earned course credits. It also has articulation agreements with several international schools for the transfer of credits to attend Davis. Davis is accredited by The Higher Learning Commission and the Ohio State Board of Career Colleges and Schools with programs authorized by the Ohio Board of Higher Education. For more information, please visit www.davisuniversity.edu/.

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 University 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 operates and is a 70% owner of Davis University, a career training university 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. EpicQuest Education recently established a wholly owned subsidiary, Gilmore Inv LLC ("Gilmore"), in Ohio, that will offer international educational programs related to kinesiology and recreation education. The Company also established a company in Ohio, SouthGilmore LLC that has been formed to organize sports-related entertainment projects, which is 40% owned by Gilmore. For more information, please visit 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 estimates on the increase in student enrollment from the Agreement. 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
info@epicquesteducation.com 

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

When will the Transfer Articulation Agreement between Davis University and CAS become effective?

The Agreement becomes effective December 1, 2024.

What is the expected enrollment increase for EEIQ from the new Transfer Articulation Agreement?

The company expects a 20-25% increase in international student enrollment through this agreement.

Which countries are included in EEIQ's new international student agreement?

The agreement includes institutions in Japan, Myanmar, Sri Lanka, and Ecuador.

When can international students start enrolling at Davis University under the new agreement?

International students can begin enrolling at Davis University starting from the Spring 2025 semester.