Benzinga | Jul 19, 2021 07:02AM EDT

China Liberal Announces Extension Of Letter Of Intent To Acquire Wanzhong Education Investment Management Co. For $MB350M

China Liberal Education Holdings Limited (Nasdaq: CLEU) ("China Liberal", the "Company", or "we"), an educational services provider in China, providing, among other services, smart campus solutions, today announced that on July 3, 2021, it entered into an extension agreement ("LOI Extension Agreement") to the non-binding letter of intent ("LOI") to acquire Wanzhong (Hong Kong) Education Investment Management Co., Ltd ("WEIM").

Pursuant to LOI Extension Agreement, the Company intends to acquire 100% of the issued and outstanding shares of WEIM from its sole shareholder, to be paid in cash and ordinary shares of the Company with a total value of RMB350 million, subject to adjustments based on the results of the upcoming due diligence on WEIM by the Company and further negotiations between the parties. Either party to the LOI Extension Agreement may, at any time, terminate the negotiations of the potential acquisition with the other party unilaterally.

Ms. Ngai Ngai Lam, Chairperson and CEO of China Liberal, commented, "Acquiring WEIM is a big move from us and we need to take many factors into consideration to protect the interests of the Company and its shareholders. That is why we entered into the LOI Extension Agreement after about half a year of negotiations. We originally focused on providing teaching, management, information services, internship and employment services. Through this acquisition, we would directly operate the schools as the owner, which is a challenge but also a huge opportunity for us. In addition to potentially achieving greater profits and returns for investors through operating the schools efficiently, we are also hoping to establish and improve the Company's teaching and research team as well as experimenting with education informatization, and lay a solid foundation for the Company's expansion."

Completion of the transaction is subject to, among other matters, the completion of due diligence, the negotiation of a definitive agreement, satisfaction of the conditions negotiated therein and approval of the transaction by the Company's shareholders. Accordingly, there can be no assurance that a definitive agreement will be entered into or that the proposed transaction will be consummated.