EEIQ Recently Entered into a New Agreement with Peking University that Sustains its High Revenue Generating Foundational Programs
MIDDLETOWN, Ohio, June 25, 2024 /PRNewswire/ -- EpicQuest Education Group International Limited (NASDAQ: EEIQ), ("EpicQuest Education", "EEIQ" or the "Company"), a provider of higher education for domestic and international students in the US, Canada and the UK, announced an operations update of its wholly-owned Davis University as to its China-based foundational programs and its sponsored soccer matches with the Argentine Men's National Football Team.
EpicQuest Education Group International Limited (PRNewsfoto/EpicQuest Education Group International Limited)
Davis University's Unique Foundational Programs
A Renewed Agreement with Peking University. The Company's owned and operated Davis University ("Davis") entered into a second Cooperation Agreement (the "Agreement") with Peking University that sustains its foundational program on one of Peking University's main campuses. The Agreement is effective from July 28, 2024 to July 31, 2025. With the renewed Agreement, student enrollment in the program has been increased from 50 students to 80 students, and this quota has already been reached. The academic program begins in August 2024.
The Agreement with Shanghai Jiao Tong University. Davis has previously announced its agreement with Shanghai Jiao Tong University to establish a foundational program on one of its main campuses, which is effective from May 8, 2024 through December 31, 2026. Davis is expecting to have an enrollment of up to 50 students in this first year of the program beginning in September 2024.
The Foundational Programs Generate Robust Revenue. The Company's foundational program represent a substantial and sustainable revenue stream without the attendant infrastructure cost on the Davis campus, while potentially fueling future on-campus enrollment. The Company estimates that these two foundational programs, in addition to foundational programs that are also in place, would potentially add over $5 million to the Company's revenue for the fiscal year ended September 30, 2025. The vast majority the students who enrolled the foundational programs last year will continue their study this year, supporting expected Company revenue.
"Davis' two-year foundational programs secure sustainable revenue because the retention rate of students from the first to the second year is usually close to 100%," stated Zhenyu Wu, CFO of EpicQuest Education. "We have deep experience in recruiting international students and have developed a highly successful model that ensures their academic success leading to good careers. Our foundational programs also create a pool of future students for both Davis University and EduGlobal College which can lead to the growth in revenue from both tuition and on-campus services."
The Company's Sponsored Soccer Matches with the Argentine Men's National Football Team.
The Exhibition Matches are Rescheduled. As previously announced, the Company's 40% owned entity Southgilmore LLC ("Southgilmore") through its wholly-owned subsidiary Gilmore Inv LLC ("Gilmore") acquired the rights to organize two friendly exhibition soccer matches with the Argentine Men's National Football Team. The Argentine Football Association confirmed to Southgilmore that it was rescheduling the previously scheduled matches, which are now to be held from October 2025 to March 2026 in the territory of the Asian Football Conference.
The Synergies of EEIQ's New Sports Entertainment Segment. In addition to driving a new and potentially dynamic sports entertainment revenue stream, the Company's new sports entertainment segment was created to include synergies with Davis University's kinesiology and fitness programming.
Sports Entertainment is a Huge and Growing Market According to Statista.com, a global data and business intelligence platform, revenue for the global sports market is estimated to be $512 billion in 2023 and is projected to grow to $680 billion by 2028. The popularity of global sports events continues to grow as these events are becoming better publicized and they are also aligned with the growing participation rates in sports and fitness worldwide.
Jianbo Zhang, Chief Executive Officer of EpicQuest Education, said, "We anticipate that our rescheduled matches with the World Cup Argentina Men's Soccer Team will generate substantial revenue consisting of broadcasting rights, sponsorships, ticket sales, merchandizing, and concession sales. We believe that our sports entertainment segment adds a new and exciting dimension to the Company as well as a further diversification of our revenue stream that will lead to higher corporate growth."
EpicQuest Education's Mission of Internationalization
The Company believes that internationalization is a key element of its strategic growth plan. EpicQuest Education's growth plan is to have its operated colleges, Davis University and EduGlobal College, become increasingly focused on international recruiting and enhanced globalized learning to its students as well as pathways to achieve university degrees. The Company's strategic growth plan is to achieve international expansion and establish EEIQ as a truly international service provider of higher learning.
About EpicQuest Education Group International Limited
EpicQuest Education Group International Limited ("EpicQuest Education" or the "Company") provides comprehensive education solutions for domestic and international students seeking university and University degrees in the US, Canada and the UK. The Company owns and operates EduGlobal University, based in British Columbia, Canada, which focuses on English proficiency educational programming for students pursuing academic degrees. The Company operates and is a 70% owner of Davis University, a career training University located in Toledo, Ohio. In addition, the Company has a recruiting relationship with the Miami University Regional campuses, where it maintains residential facilities, a full-service cafeteria, recreational facilities, shuttle buses and an office for the regional campuses that provides study abroad and post-study services for its students; these facilities are not owned, maintained, operated or are a part of Miami University. The Company is also a recruiting agent for the University of the West of Scotland (through The Education Group (London) Ltd) and Coventry University, both of which are located in the UK. EpicQuest Education recently established a wholly owned subsidiary, Gilmore Inv LLC, in Ohio, that will offer international educational programs related to kinesiology and recreation education. The Company also established a company in Ohio, SouthGilmore LLC that has been formed to organize sports-related entertainment projects, which is 40% owned by Gilmore. For more information, please visit www.epicquesteducation.com/.
Safe Harbor Statement
Certain of the statements made in this press release are "forward-looking statements" within the meaning and protections of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements in this press release include, without limitation, the ability of the Company to increase enrollment in its foundational programs, the ability of the two foundational programs described and other foundational programs to add over $5 million to the Company's revenue for the fiscal year ended September 30, 2025, and the timing of the rescheduled exhibition soccer matches. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, capital, ownership or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as "may," "will," "anticipate," "assume," "should," "indicate," "would," "believe," "contemplate," "expect," "estimate," "continue," "plan," "point to," "project," "could," "intend," "target" and other similar words and expressions of the future.
All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our most recent Form 20-F and otherwise in our SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at http://www.sec.gov. We have no obligation and do not undertake to update, revise or correct any of the forward-looking statements after the date hereof, or after the respective dates on which any such statements otherwise are made.
