Elite Education Tanks 54% in Public Trading Debut

The newly-listed company provides study abroad services to Chinese students in the United States. Today, it has gained $6 million in expansion capital.
Jennifer ChanMar 25,2021,17:13

Elite Education Group International Ltd. (Nasdaq: EEIQ) tanked 54% upon its public trading debut on the Nasdaq Capital Market Thursday.

The company, which facilitates study abroad and post-study services for Chinese students in the United States, sold 750,000 units consisting of shares and warrants, priced at $8 each. The proceeds of $6 million, according to the prospectus, will be invested in new campuses, overseas expansion, and entry into the U.K.

Elite Education has been adversely affected by the Covid-19 outbreak and by the political tensions between the U.S. and Chinese governments, the company said in its filing with the U.S. Securities and Exchange Commission. In the period from September 2019 to May 2020, more students registered for its programs than those eventually enrolled. On average, Elite Education enrolls 120-130 students per year.

In the 12 months through September 2020, Elite Education booked $9.1 million in revenues, up 5% year-over-year. Net income halved from the preceding year to $1 million, it said.

Elite Education said it plans to expand its existing Middletown campus, build new facilities in Hamilton and Oxford campuses of the Miami University of Ohio. The company is also looking to make an acquisition of a private school in Canada and expand in Southeast Asia, specifically, Vietnam and Myanmar, by working with local partners. It is also looking to establish a center in London, Elite Education said in its prospectus.

By midday in New York, Elite Education’s shares traded at $3.71 apiece.

ViewTrade Securities, Inc. secured the deal.

Topics:EEIQ, Elite Education, Study Abroad