Markham, Canada, Aug. 17, 2022 (GLOBE NEWSWIRE) -- Visionary Education Technology Holdings Group Inc. (the “Company”) (Nasdaq: VEDU), a private education provider located in Canada that offers high-quality education resources to students around the globe, today announced that on August 8, 2022, the Company, through its wholly-owned subsidiary Visionary Education & Service Management Inc., entered into a nonbinding Letter of Intent (the “LOI”) with Beijing InnoBuddy Technology Co., Ltd. (“IBT”), an education technology company in Beijing, China, to acquire 75% equity interest of IBT’s wholly-owned Shanghai Jinhuiercheng Technology Co., Ltd. (“OMO”). OMO has an international education platform, Smart system, and related intellectual property rights, and six directly operated Online-Merge-Offline learning centers in Shanghai and approximately 100 school customers in China. The LOI is subject to our due diligence and the negotiation and execution of a definitive stock purchase agreement. The parties agreed to proceed in good faith with the transaction and IBT and OMO agreed to not to participate in any solicitation or to accept any offer from any third party seeking or inquiring about the acquisition of OMO until December 31, 2022.
Pursuant to the LOI, the Company intends to purchase 75% of the shares of OMO and pays IBT $7.2 million in cash. After the acquisition of these shares, IBT shall hold the remaining 25% of the shares.
Mr. David Xu, Chief Executive Officer and Chief Operating Officer of the Company, commented, “We are excited to enter the LOI to acquire OMO, which aligns with our business expansion strategy in the long run. Leveraging OMO's artificial intelligence and deep learning technologies, we plan to expand its OMO centers to other major cities in China and potentially to more regions in the Asia Pacific. Due to the advantages of OMO centers in providing high-quality course videos, exams, and test reviews for high school and language school in the online format, we expect the OMO centers can effectively help students improve their learning experience and succeed in language proficiency tests. We also plan to consolidate OSSD programs in Canada and Griggs China's U.S. GIA high school courses into the OMO platforms in China and potentially broad Asia Pacific region. Through our technological innovation, we strive to provide students around the globe access to secondary, college, undergraduate and graduate, and vocational education in Canada, which would help more students learn, grow and reach their full potential. With the acquisition of OMO, 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 Jinhuiercheng Technology Co., Ltd.
Shanghai Jinhuiercheng Technology Co., Ltd (“OMO”) has an international education platform, Smart system, and related intellectual property rights, and six directly operated Online-Merge-Offline learning centers in Shanghai and approximately 100 school customers in China. It provides standardized and personalized online and offline learning platforms for students in grades 9-12 internationally, using artificial intelligence and deep learning technologies.
About Visionary Education Technology Holdings Group Inc.
Visionary Education Technology Holdings Group Inc., headquartered in Markham, Canada, is a private education provider located in Canada 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.
Forward-Looking Statements
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
Email: ir@farvision.ca
Ascent Investors Relations LLC
Tina Xiao
President
Phone: +1 917-609-0333
Email: tina.xiao@ascent-ir.com
