Elite Education Group Agrees to Purchase Controlling Interest in EduGlobal College Located in Canada

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[{"type":"text","content":"MIDDLETOWN, Ohio, Jan. 24, 2022 /PRNewswire/ -- Elite Education Group International Limited (Nasdaq: EEIQ), (the \"Company\" or \"Elite Education Group\"), a provider of comprehensive education solutions for domestic and international students interested in college and university programs in the US, Canada and the UK, today announced that on January 15, 2022, the Company's wholly-owned subsidiary, Highrim Holding International Limited, entered into agreements with Canada EduGlobal Holdings Inc. (\"Global\") and Richmond Institute of Languages Inc. d.b.a. EduGlobal College, pursuant to which it acquired 80% of the issued and outstanding shares of EduGlobal College from Global. \n\n \n \n \n \n \n \n\n \nThe initial purchase price for EduGlobal College was C$1.0 million (US$0.8 million), and the Company assumed up to C$200,000 (US$160,000) in certain liabilities of the college. In addition, the Company agreed to invest an additional C$3.0 million (US$2.4 million) over a two-year period in EduGlobal College to be used for the enhancement of its educational programs, increased student enrollment and general campus improvements. Further, on the three-year anniversary of the agreements, if EduGlobal College has not achieved certain financial and student enrollment metrics, the Company has the right to sell its 80% equity position back to Global for C$1.0 million (US$0.8 million) plus the sum of its investments in the college, up to an additional C$3.0 million (US$2.4 million).\n\"We are pleased to take this next step in our corporate growth by expanding our business model into the Canadian market with our acquisition of an 80% equity ownership position in EduGlobal College,\" said Jianbo Zhang, Chairman and Chief Executive Officer of Elite Education Group. \"We believe that the acquisition is a key step in our strategic growth plan as it achieves geographical diversification as an owner and operator following our acquisition last month of the rights to a controlling interest in Davis College in the US. It also provides us with an opportunity to further develop EduGlobal's innovative educational programs of English proficiency training and academic programming that is student-centric and are the very highest in academic quality.\"\n\"A vital component of our mission is in the name of EduGlobal College itself, which is to engage in glob...

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