Elite Education Group International Limited (NasdaqCM:EEIQ) acquired a 80% stake in Richmond Institute of Languages Inc. from Canada EduGlobal Holdings Inc. for CAD 1.2 million on January 15, 2022. The purchase price for the Shares was CAD 1 million and Elite assumed up to CAD 0.2 million in certain liabilities of Richmond Institute. Elite agreed to invest a total of CAD 3 million over a two year period to Richmond Institute by way of capital contribution. In the event that Elite breaches its obligations to make the foregoing Capital Contribution, Global has the option to repurchase the Shares for an aggregate price of CAD 100. Pursuant to the Option Agreement, on the three-year anniversary of the agreement, if Richmond Institute has not achieved certain financial and student enrollment metrics, Elite shall have the right to sell the Shares back to Global for an amount equal to CAD 1 million plus the sum of the Capital Contribution made. Richmond Institute entered into a three-year employment contract with the principal of Global to serve as chief executive officer of Richmond Institute. The Board of Richmond Institute will consist of three members, of which Elite shall have the right to appoint two members. Samuel A. Goszer of Levene Tadman Golub Law Corporation acted as legal advisor to Elite Education Group International Limited. Jesse Ahuja and Jennifer MacGregor-Greer of Michael, Evrensel & Pawar LLP acted as legal advisor to Canada EduGlobal Holdings Inc.

Elite Education Group International Limited (NasdaqCM:EEIQ) completed the acquisition of a 80% stake in Richmond Institute of Languages Inc. from Canada EduGlobal Holdings Inc. on January 15, 2022.