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Visionary Education Technology Holdings Group Inc. Enters Letter of Intent to Acquire 75% Equity Interest of Shanghai Jinhuiercheng Technology Co., Ltd
Markham, Canada, Aug. 17, 2022 (GLOBE NEWSWIRE) -- Visionary Education Technology Holdings Group Inc. (the “Company”) (Nasdaq: VEDU), a private education
About this update from Visionary Holdings Inc.
[{"type":"text","content":"Markham, Canada, Aug. 17, 2022 (GLOBE NEWSWIRE) -- Visionary Education Technology Holdings Group Inc. (the “Company”) (Nasdaq: VEDU), a private education provider located in Canada that offers high-quality education resources to students around the globe, today announced that on August 8, 2022, the Company, through its wholly-owned subsidiary Visionary Education & Service Management Inc., entered into a nonbinding Letter of Intent (the “LOI”) with Beijing InnoBuddy Technology Co., Ltd. (“IBT”), an education technology company in Beijing, China, to acquire 75% equity interest of IBT’s wholly-owned Shanghai Jinhuiercheng Technology Co., Ltd. (“OMO”). OMO has an international education platform, Smart system, and related intellectual property rights, and six directly operated Online-Merge-Offline learning centers in Shanghai and approximately 100 school customers in China. The LOI is subject to our due diligence and the negotiation and execution of a definitive stock purchase agreement. The parties agreed to proceed in good faith with the transaction and IBT and OMO agreed to not to participate in any solicitation or to accept any offer from any third party seeking or inquiring about the acquisition of OMO until December 31, 2022. Pursuant to the LOI, the Company intends to purchase 75% of the shares of OMO and pays IBT $7.2 million in cash. After the acquisition of these shares, IBT shall hold the remaining 25% of the shares. Mr. David Xu, Chief Executive Officer and Chief Operating Officer of the Company, commented, “We are excited to enter the LOI to acquire OMO, which aligns with our business expansion strategy in the long run. Leveraging OMO's artificial intelligence and deep learning technologies, we plan to expand its OMO centers to other major cities in China and potentially to more regions in the Asia Pacific. Due to the advantages of OMO centers in providing high-quality course videos, exams, and test reviews for high school and language school in the online format, we expect the OMO centers can effectively help students improve their learning experience and succeed in language proficiency tests. We also plan to consolidate OSSD programs in Canada and Griggs China's U.S. GIA high school courses into the OMO platforms in China and potentially broad Asia Pacific region. Through our technological innovation, we strive to pro...