EpicQuest Education Announces Exhibition Matches with Lionel Messi and Argentina's World Cup National Soccer Team

Rhea-AI Summary

EpicQuest Education Group International Limited (EEIQ) has announced its new sports entertainment segment through its Ohio company, SouthGilmore LLC, entering into an agreement with the Argentine Football Association for the Argentina Men's National Soccer Team to play two exhibition matches in China. This move is expected to open up new revenue streams and synergies with the company's education programs. The company also established a subsidiary, Gilmore Inv LLC, to offer international educational programs related to kinesiology and recreation education. The agreement includes provisions for press conferences, promotional activities, and payment to the AFA for the matches.

Insights

Market Research Analyst

Entering into a new segment, particularly sports entertainment, represents a strategic pivot for EpicQuest Education, traditionally known for its educational services. This diversification could potentially open up additional revenue streams and mitigate sector-specific risks. The decision to collaborate with the Argentine Football Association for exhibition matches in China is significant. It capitalizes on the popularity of soccer, particularly leveraging the star power of Lionel Messi, to draw attention and crowds, which could translate into substantial ticket sales and sponsorships.

The synergistic approach of tying the sports entertainment venture to new education programs in kinesiology and recreation could create a unique niche for EpicQuest Education. This could attract new students and partnerships, providing a dual benefit of enhancing the company's educational portfolio while also promoting its sports entertainment endeavors. However, the success of this strategy will largely depend on the execution and the company's ability to effectively market these new offerings.

Investors should monitor the consumer response to the exhibition matches and subsequent educational programs. Positive reception can lead to increased investor confidence, potentially boosting EEIQ's stock performance. Conversely, a lackluster response or poor execution could reflect negatively on the company's diversification strategy and impact investor sentiment.

Financial Analyst

The announcement of EEIQ's venture into sports entertainment is a noteworthy development that could impact the company's financial health. The collaboration with the AFA, especially with the promise of featuring the World Cup-winning team, is likely to generate significant interest and revenue. However, it is essential to consider the costs associated with organizing such high-profile events, including payments to the AFA and expenses for transportation and lodging.

Investors should evaluate the potential return on investment from these exhibition matches. If the events are successful, they could lead to a notable increase in EEIQ's top-line results in future reporting periods. However, the initial costs and ongoing investments in the new education programs must be weighed against the expected revenues to assess the long-term profitability of this new business segment.

It will be critical to analyze the subsequent financial statements for changes in revenue streams and expense structures. The company's ability to manage these new operational complexities while maintaining or improving profit margins will be an important indicator of the sustainability of this growth strategy.

Economist

The move by EEIQ to establish a presence in the sports entertainment market, specifically in China, indicates an awareness of the growing economic potential of this sector. China's large population and increasing interest in soccer present a lucrative market. The timing of the exhibition matches could also be strategic, potentially aligning with broader economic trends such as increased leisure spending and international sports tourism in the region.

Furthermore, the development of new educational programs in kinesiology and recreation education is indicative of a broader economic push towards specialized education services that align with current market demands and job market trends. The integration of these programs with the sports entertainment segment could be seen as an innovative approach to education that responds to evolving economic and cultural interests.

Long-term economic implications for EEIQ include the potential to establish a strong brand presence in a new industry and the creation of diverse revenue streams that could provide stability against market fluctuations in the education sector. However, the company's ability to adapt to the dynamics of the sports entertainment industry and the associated financial risks will be crucial in determining the economic success of this venture.

EEIQ Anticipates Dynamic Growth in its New Sports Entertainment Segment

MIDDLETOWN, Ohio, Jan. 18, 2024 /PRNewswire/ -- EpicQuest Education Group International Limited (NASDAQ: EEIQ), ("EpicQuest Education", "EEIQ" 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 its recently established Ohio company, SouthGilmore LLC ("SouthGilmore"), has entered into an agreement with the Argentine Football Association (the "AFA"), for the Argentina  Men's National Soccer Team to play two exhibition matches in China.

"We believe that the soccer exhibition games with the Argentine Men's National Team will lead to additional sports entertainment projects, which is a new and potentially dynamic revenue stream for the Company," said Zhenyu Wu, Chief Financial Officer of EpicQuest Education. "We anticipate that the exhibition matches will also serve as a firm foundation for our new education programs related to kinesiology and recreation education where we see wide-ranging synergies. We believe that the new business segment will have a positive impact on the Company's top-line results in future reporting periods. We look forward to seeing star soccer player Lionel Messi take the field in China!"

As previously announced, EpicQuest Education established a wholly-owned subsidiary, Gilmore Inv LLC, that will offer international educational programs related to kinesiology and recreation education that will be offered by both Davis University and EduGlobal College. SouthGilmore has been formed to organize sports entertainment projects, and is 40% owned by Gilmore with EpicQuest Education maintaining control of SouthGilmore's Board of Managers and heading its management team.

Per the agreement between SouthGilmore and the AFA, the Argentina Men's National Soccer Team has agreed to play two matches in China between March 18 – 26, 2024. Press conferences and extensive promotional activities will be scheduled to publicize these matches. Additional provisions in the agreement call for SouthGilmore to remit a payment to the AFA for the matches and to cover certain expenses such as transportation and lodging, while the AFA has agreed to field the team that won the World Cup at the Qatar 2022 World Cup.

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 operates and is a 70% owner of Davis University, 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.

EpicQuest Education recently established a wholly owned subsidiary, Gilmore Inv LLC, 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/. For additional information about the agreement between SouthGilmore and the AFA, please see the Form 6-K filed by the Company on the date hereof.

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, whether the new business segment will have a positive impact on the Company's top-line results in future reporting periods.  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

What is the new business segment announced by EEIQ?

EEIQ has announced a new sports entertainment segment through its Ohio company, SouthGilmore LLC.

What agreement has been made by SouthGilmore LLC with the Argentine Football Association?

SouthGilmore LLC has entered into an agreement with the Argentine Football Association for the Argentina Men's National Soccer Team to play two exhibition matches in China.

What is the purpose of the agreement between SouthGilmore LLC and the AFA?

The purpose of the agreement is to open up new revenue streams and synergies with the company's education programs.

What subsidiary has been established by EpicQuest Education?

EpicQuest Education has established a subsidiary, Gilmore Inv LLC, to offer international educational programs related to kinesiology and recreation education.

When are the matches between the Argentina Men's National Soccer Team and China scheduled to take place?

The matches are scheduled to take place between March 18 – 26, 2024.