EEIQ EpicQuest Education Group International Ltd

EEIQ's Local Representative Entered into an Agreement that Could Generate Substantial Revenue for the Company from the Exhibition Match 

MIDDLETOWN, Ohio, Jan. 23, 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 the business partner of SouthGilmore LLC ("SouthGilmore"), which is 40% owned by the Company, entered into a Cooperation Agreement (the "Agreement") with a local organizer that stipulates revenue sharing from one of the two exhibition matches with the Argentina Men's National Soccer Team. As previously announced, SouthGilmore has entered into an agreement with the Argentine Football Association (the "AFA"), for the Argentina Men's National Soccer Team to play two exhibition matches in China.

"We look forward to two exciting soccer exhibition games with the Argentina Men's National Team in China," said Zhenyu Wu, Chief Financial Officer of EpicQuest Education. "The matches represent a new and potentially dynamic revenue stream for the Company. We believe that both soccer matches will generate substantial revenue for the Company, and we look forward to developing additional sports entertainment projects. Our sports entertainment projects will also benefit the programs related to kinesiology and reactional activities that will be offered by Davis University."

SouthGilmore appointed its business partner in China, Zhongfu Sports Co., Ltd. ("Zhongfu"), to be its local representative, and Zhongfu has entered into a Cooperation Agreement (the "Agreement") with a third party which is responsible for the local organization of one of the exhibition matches. The Agreement stipulates that the first RMB 180 million (approximately US $25.0 million) of revenue from this exhibition match will be distributed to SouthGilmore through its business partner. Should the revenue be between RMB 180 million (approximately US $25.0 million) and RMB 210 million (approximately US $29.2 million), SouthGilmore, through its business partner, would receive 80% of the match revenue and the local organizer would receive the remaining 20%. Should the revenue be greater than RMB 210 million (approximately US $29.2 million), SouthGilmore, through its business partner, would receive 70% of the match revenue and the local organizer would receive 30% of the match revenue. Due to its 40% ownership of SouthGilmore, the Agreement calls for the Company to receive 40% of the amounts distributed, if any, to SouthGilmore from this one exhibition match. The foregoing amounts represent potential gross revenue, and all expenses related to the hosting of the matches will be borne by SouthGilmore.

Per the agreement between SouthGilmore and the AFA, the Argentina Men's National Soccer Team has agreed to play two matches in China between March 18 and March 26, 2024. Press conferences and extensive promotional activities will be scheduled to publicize these matches. Additional provisions in the agreement call for SouthGilmore to remit a payment to the AFA for the matches and to cover certain expenses such as transportation and lodging, while the AFA has agreed to field the team that won the World Cup at the Qatar 2022 World Cup. Additional details will be announced as to the other exhibition match scheduled to be held in March 2024.

EpicQuest Education Group International Limited ("EpicQuest Education" or the "Company") provides comprehensive education solutions for domestic and international students seeking university and college degrees in the US, Canada and the UK. The Company owns and operates EduGlobal College, 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 college 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/.

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 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. Forward-looking statements in this press release include, without limitation, the amount of the revenue that may be received from the hosting of the exhibition matches. 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.

EpicQuest Education Group International Limited
+1 513-649-8350
info@epicquesteducation.com

Investor Relations:
Precept Investor Relations LLC
David Rudnick
+1 646-694-8538
david.rudnick@preceptir.com

Source: EpicQuest Education Group International Limited

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