Elite Education Group International Limited a provider of comprehensive education solutions for Chinese university students interested in study abroad programs in the US and other countries, announced that as a key part of its strategic growth plan, on November 26, 2021 the Company closed on its previously announced acquisition of a controlling stake in Ameri-Can Education Group Corp. (“Ameri-Can”), which has the right to the underlying equity of Davis College, a two-year career-training college. Pursuant to the Stock Purchase Agreement, the Company has acquired 70% of Ameri-Can, with 77.78% of voting rights, at an acquisition price of $2.5 million, with 50% of the payment made in cash and 50% in EEIQ common shares at a price of $6.20, and an additional cash investment of $2.5 million in Ameri-Can at closing.
Jianbo Zhang, Chairman and Chief Executive Officer, commented, “We are excited to acquire a controlling equity ownership position in Ameri-Can, the company holding the right to the underlying equity of Davis College, as it represents a key strategic growth initiative that expands our business model to being an operator of a college that provides career-training programs as well as a ‘transfer pathway’ to top universities for students to pursue Bachelors’ degrees. We believe that Davis College offers immediate synergies with our existing operations as well as significant long-term growth opportunities in the US, the cornerstone of our global expansion strategy.”
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“As we engage in the administration of Davis College and its curriculum, we plan to develop new educational programs at Davis College to provide an optimal academic experience for our students. We believe that this will enable us to substantially heighten our recruitment efforts both domestically and internationally as we offer students a broader set of academic and career-training options that match their life goals. As a key element of our strategic growth plan, we will continue to target educational institutions that meet our acquisition criteria and that offer high potential synergies,” concluded Mr. Jianbo Zhang.
The Company plans to prioritize domestic recruiting with an initial focus on Ohio and Michigan to substantially increase the student body at Davis College which the Company believes has ample room for growth. The Company also envisions the acquisition as an opportunity to implement innovative education programs that are both broad and flexible in order to provide an enriched experience for its students. Elite Education plans to add academic studies that provide career opportunities that are in high demand such as data science and electrical engineering as well as other new programs that are cost-effective for its students. We anticipate hiring highly qualified full-time faculty members and sessional instructors for our new programs to accommodate the potential growth of the student body at Davis College. Through the growth of enrollment in Davis College, the Company believes that it will be well positioned to achieve growth in the US market.
The Company also plans to recruit students from China and other Asian countries and deploy the academic model it established at the regional campuses of Miami University of Ohio (the “MU Regional Campuses”) where it provides English language support for its international students as well as residential facilities (facilities that are not owned, maintained, operated or are part of MU) and on-campus support. The Company believes that its entry into the career-oriented community college field will help it to recruit international students from China as well as to help it to enter the Southeast Asian markets. The acquisition is 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.
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To ensure a smooth transition subsequent to the acquisition of a controlling ownership equity position in Ameri-Can, the new Board of Directors of Ameri-Can consists of five members, with Dr. Zhenyu Wu, Chief Financial Officer of Elite Education Group, serving as the Chairman. The other Board members are Ms. Diane Brunner, President of Davis College, Mr. John Zonghai Han, Vice President (International) of Davis College, Ms. Yuxia Xu, COO and CMO of Elite Education Group and Mr. Bo Yu, Chief Program Officer of Elite Education Group.
Elite Education Group anticipates that the career-training educational markets in the US and other countries, including China, will grow substantially and that with its proven student recruitment capabilities, its controlling equity ownership position in Ameri-Can represents an excellent growth opportunity for the Company.
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