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, which is expected to expand our high-quality education programs and training services offerings and increase our student bases. This acquisition will provide paths for our students to receive dedicated education services of GMAT training and for HEBT’ students to receive additional education programs and training services. We believe this acquisition will benefit both of our students and will continue to optimize our education services ecosystem. With the acquisition of HEBT, we are optimistic about seizing the opportunities ahead of us and are committed to growing our business to generate more value for our shareholders in the long term.”
About Shanghai Heerbanti Education Technology Co., Ltd.
Shanghai Heerbanti Education Technology Co., Ltd. (“HEBT”) is an education services company that offers postgraduate tutoring, test preparation and admission resources for students and working professionals primarily for the Graduate Management Admission Test (“GMAT”). HEBT delivers online interactive high-quality educational contents by its well-known and popular teachers from New Oriental Education & Technology Group Inc and TAL Education Group in both small group sessions and one and one settings to both students and professionals at various life and career stages. The company’s exam tutoring programs offer one and one high-end customized classes and all-around GMAT group classes. In addition, HRBT’s one-stop comprehensive training system is designed to provide college students and business executives who are pursuing advanced oversea education the access to interactive resources and study aids such as online practice and quizzes, online simulation and Q&A, live classes and pre-recorded video lessons, one-and-one tutoring and an online social media forum with full-time expert instructors’ support. The innovative approach to exam preparation and the proven track record of exam passing rate position the company in the top tier of the industry.
About Visionary Education Technology Holdings Group Inc.
Visionary Education Technology Holdings Group Inc., headquartered in Toronto, Canada, is a private education provider located in Canada, with subsidiaries in Canada and market partners in China, that offers high-quality education resources to students around the globe. The Company aims to provide access to secondary, college, undergraduate and graduate and vocational education to students in Canada through technological innovation so that more people can learn, grow and succeed to their full potential. As a fully integrated provider of educational programs and services in Canada, the Company has been serving and will continue to serve both Canadian and international students. For more information, visit the Company’s website at https://ir.visiongroupca.com/.
All statements other than statements of historical fact in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “believes,” “expects,” “anticipates,” “estimates,” “intends,” “would,” “continue,” “should,” “may,” or similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and in its other filings with the SEC.
For more information, please contact:
Visionary Education Technology Holdings Group Inc.
Investor Relations Department
Ascent Investors Relations LLC
Phone: +1 917-609-0333