Business
Visionary Education Technology Signs non-binding LOI to Acquire Equity Interest of an Online Postgraduate Tutoring Provider.
Toronto, Canada, Nov. 16, 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":"Toronto, Canada, Nov. 16, 2022 (GLOBE NEWSWIRE) -- Visionary Education Technology Holdings Group Inc. (the \"Company\") (NASDAQ: VEDU), a private education provider located in Canada, with subsidiaries in Canada and market partners in China, today announced that on October 30, 2022, the Company entered into a non-binding Letter of Intent (the “LOI”) to acquire a minimum of an 85% equity interest of Shanghai Heerbanti Education Technology Co., Ltd. (“HEBT”), an education services company headquartered in Shanghai that offers postgraduate tutoring, test preparation and admission resources for students and working professionals in China primarily for the Graduate Management Admission Test (“GMAT”) in connection with graduate business applications. This proposed transaction aligns with the Company’s corporate goal to achieve sustainable growth by acquiring other high-quality education services companies and fits the Company’s growth strategies to expand its offering of education products and services. Pursuant to the LOI, the Company intends to acquire the equity interest of HEBT in three stages. The Company intends to pay US$2,748,401 in its ordinary shares at a price of $4 per share in the first stage for a 35% equity interest of HEBT and the first stage transaction is expected to be closed by November 30, 2022. The Company intends to pay US$4,947,121 in its ordinary shares in the second stage for an additional 35% equity interest of HEBT provided HEBT achieves a targeted net income for the year ending December 31, 2022 and US$2,983,040 in its ordinary shares in the third stage for an additional 15% equity interest of HEBT provided HEBT’s achieves a targeted net income for the year ended December 31, 2023. The Company will have an option to acquire between 15% and 30% of the equity interests in HEBT at the third stage. The LOI is subject to the Company’s due diligence, negotiation, further evaluation, and execution of a definitive agreement. Mr. David Xu, Chief Executive Officer and Chief Operating Officer of the Company, commented, “We are excited to enter the LOI to acquire HEBT and we expect this acquisition will increase our presence in the postgraduate education market in China. HEBT’s innovative approach to exam preparation and its proven track record of exam passing rate position it well in the top tier of the industry, whi...