Benzinga | Jan 24, 2022 10:58AM EST

Elite Education To Acquire 80% Stake In EduGlobal College In Canada

* Elite Education Group International Ltd (NASDAQ:EEIQ) subsidiary, Highrim Holding International Limited, entered into agreements with Canada EduGlobal Holdings Inc to acquire 80% of the issued and outstanding shares of Richmond Institute of Languages Inc. d.b.a. EduGlobal College.

* The initial purchase price for EduGlobal College was C$1.0 million ($0.8 million) and assumed up to C$0.20 million ($0.16 million) in certain liabilities of the college.

* The company has also agreed to invest an additional C$3.0 million ($2.4 million) over two years in EduGlobal College to enhance educational programs, increase student enrollment, and general campus improvements.

* "We believe that the acquisition is a key step in our strategic growth plan as it achieves geographical diversification as an owner and operator following our acquisition last month of the rights to a controlling interest in Davis College in the US," said Chairman and CEO Jianbo Zhang.

* Price Action: EEIQ shares traded lower by 10.8% at $2.32 on the last check Monday.