Elite Education Group International Ltd. (NASDAQ: EEIQ) stock gained by 0.49% at the last close whereas the EEIQ stock price declines by 5.56% in the pre-market trading session. Elite Education Group with its subsidiary Quest Holding International LLC, provides complete, one-stop education services. It is intended for Chinese students who wish to participate in study abroad programs in the United States and other countries.
EEIQ stock’ Recent Development
Elite Education Group International Ltd. has unveiled the initiation of a strategic growth project as part of its goal for a longer period of time to become a premier educational organization. As a result, the Company has signed a non-binding partnership agreement with Ameri-Can Courses Group Corp., a company based in Ohio that specializes in career training education.
The company wants to grow its educational business model by partnering with educational companies that match and synergize with it. The Company has been focusing on highly targeted educational goals that will allow it to develop its skills by providing the right size, geographic reach, and student population to offer significant value and grow its education service industry. If the transaction is completed, the Company will own 70% of Ameri-Can, according to the LOI. At a cost of $2.5 million, it will also receive 77.78 percent of voting rights. The payment will be split 50/50 in cash and EEIQ common shares at a price of $6.20, with a significant cash investment of $2.5 million in Ameri-Can to be made immediately after the deal closes.
Jianbo Zhang, Chairman, and CEO commented,
This possible acquisition excites them since it would constitute a substantial growth of their company. Career-training education, they feel, provides immediate synergies with their current activities as well as significant long-term development potential. This is a critical strategic endeavor for them as they extend their company model to include a new educational emphasis and deploy creative new education initiatives.
