Once Fully Enrolled, EEIQ's Foundational Programs Represent a Revenue Stream of at Least $3.4 Million per Year Starting in 2025
MIDDLETOWN, Ohio, May 14, 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, today announced that its owned and operated Davis University ("Davis") entered into a Cooperation Agreement (the "Agreement") with Shanghai Jiao Tong University to establish a foundational program on one of its main campuses. Davis' foundational programs constitute a course of study for students to acquire the skills needed for admission into Davis for its bachelor's degree programs. The Agreement is effective from May 8, 2024 through December 31, 2026. This program is expected to provide the Company with an additional sustainably growing revenue stream over the next three years.
EpicQuest Education Group International Limited (PRNewsfoto/EpicQuest Education Group International Limited)
Jianbo Zhang, Chief Executive Officer of EpicQuest Education, commented, "We are pleased to have developed this foundational program with Shanghai Jiao Tong University, a first-class and internationally renowned university. The two-year program enables students to apply for admission to Davis University and attend the following two years at its Toledo, Ohio campus where they can apply their course credits to achieve a four-year bachelor's degree at Davis University."
"Our foundational programs represent a revenue stream for EpicQuest Education since students enrolled in the first year most typically complete the entire two-year program. Importantly, the revenue realized from these programs represents a separate revenue stream that is in addition to our US and Canada-based institutions. We plan to develop foundational programs in several regions of the world where we offer students the opportunity to pursue their academic goals while also helping to direct students to complete their work at Davis and EduGlobal," concluded CEO Jianbo Zhang.
The foundational program at Shanghai Jiao Tong University, called 'The Davis University Outstanding Innovation Talent Program', is a two-year non-degree program to be held on one its five main campuses. It is designed for students who are seeking to continue their education at Davis University in one of Davis' four-year degree programs. It can also serve as a means of admission to one of Davis' pathway programs with schools such as Northeastern University, Central Michigan University and Sofia University, among others.
Each incoming class to the program is expected to consist of approximately 50 students with an expected tuition of $33,800 per year with a payment to Shanghai Jiao Tong University of $8,025 per year. The foundational program at Shanghai Jiao Tong University is expected to launch for the Fall 2024 semester. Starting in the 2025 academic year, this program is expected to consist of at least 100 students. The program has already begun to enroll students, and enrollment is expected to accelerate following China's national entrance examination for higher education in early June 2024.
The foundational program at Shanghai Jiao Tong University replicates the Company's foundational program with Peking University. As previously announced, the Company's foundational program intake at Peking University has more than 50 students registered with its target to have at least 100 students registered by September 2024. This compares with only 12 students that were enrolled in the Company's foundational program in September 2023. This represents an increase of more than 300% midway through the recruiting season with an expected eight-fold increase by September 2024 as compared to the same period last year.
"Davis' two-year foundational programs in China should secure a sustainable growth in revenues 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. This strategy builds upon our existing platforms at our US and Canadian campuses that leverages our existing infrastructure and the new programs are expected to substantially increase our future revenue."
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, and the increased revenue expected from such programs. 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.
