EpicQuest Education's Davis College Receives HLC Approval for Two New STEM Programs Expected to Lead to a Substantial Revenue Increase from India and China

Rhea-AI Summary

EpicQuest Education Group International Limited (EEIQ) announces approval for two STEM degree programs at Davis University, targeting increased revenue from Indian students. The company plans to double recruitment from China and capitalize on the Optional Training Program for international students.

Market Research Analyst

The recent announcement by EpicQuest Education Group International Limited regarding the approval of two new STEM degree programs at Davis University has the potential to significantly impact the company's revenue streams. The explicit intention to double the number of students from China and tap into the burgeoning market of Indian students studying abroad presents a strategic expansion in the company's international student base.

From a market perspective, the decision to open a recruiting office in Sri Lanka to target Southeast Asia and the Middle East indicates a diversification strategy, broadening the company's reach beyond traditional markets. This move could enhance EpicQuest Education's competitive position in the global higher education sector, which has been experiencing a shift towards STEM education due to its alignment with current job market demands.

The focus on practical training and the ability to offer Optional Practical Training (OPT) to students also aligns with the emerging trend of 'employability' as a key factor in higher education. By providing students with work experience opportunities in the US, EpicQuest Education is not only increasing its appeal to prospective students but also potentially improving post-graduation job placement rates—a metric often used to evaluate the value of educational programs.

Financial Analyst

The fiscal implications for EpicQuest Education following the HLC's approval of new STEM programs are multifaceted. Firstly, the introduction of these programs is likely to drive up tuition and service fee revenues. Considering the high demand for STEM careers, these programs can command higher tuition fees, which could positively affect the company's financial performance.

Moreover, targeting international students, particularly from India, where the number of students seeking education in the US has surged by 35%, represents a significant revenue opportunity. With the US as the top destination for these students, EpicQuest Education is well-positioned to capitalize on this trend. The company's strategic focus on internationalization and the expansion of online education offerings previously approved by the HLC further suggests a long-term growth trajectory that could be appealing to investors.

The potential doubling of student recruitment from China and the establishment of a recruiting office in Sri Lanka are proactive steps that could lead to a more robust and diversified student body, thereby enhancing revenue stability and growth prospects.

Education Policy Expert

The Higher Learning Commission's approval of Davis University's STEM degree programs reflects a broader policy trend towards STEM education, which is seen as critical to maintaining economic competitiveness. The integration of practical training within these programs is in line with current educational policy initiatives that emphasize real-world skills and job readiness.

The Optional Practical Training (OPT) program's extension to three years for STEM graduates is a policy that not only benefits students but also serves the US economy by retaining highly skilled individuals. EpicQuest Education's alignment with this policy enhances its program's attractiveness and supports the broader economic goal of fostering innovation and technical skill development within the workforce.

As international students contribute significantly to the US economy, EpicQuest Education's strategic plan to internationalize and focus on globalized learning is not only a business decision but also resonates with educational policy objectives aimed at promoting international collaboration and cultural exchange.

Indian Students Studying in the US Increased by 35% in the Most Recent Academic Year 

MIDDLETOWN, Ohio, Feb. 27, 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 on February 23, 2024, Davis University received approval from the Higher Learning Commission ("HLC") to offer two STEM degree programs, an Associate of Applied Science in Data Science and an Associate of Applied Science in Computer Engineering. These two programs are expected to lead to a substantial increase in revenue from tuition and service fees for this fiscal year. The Company expects the number of students recruited from China will be at least doubled, and students from India will constitute a significant revenue stream for the Company.  

EpicQuest Education plans to target recruiting from India as the US remains the top choice for Indian students pursuing higher education abroad. According to the US Embassy and Consulates in India, the number of Indian students who travelled to the US for higher education increased by 35% and resulted in an all-time high of approximately 270,000 students for the 2022-2023 academic year. In addition, the Optional Training Program (OPT) grants students up to three years of temporary employment authorization in the US which allows highly skilled international students to gain work experience and contribute to the US economy.

"We are pleased with the HLC approvals of our technology programs as it reinforces our academic programming that prepares our students for their professional careers. It further highlights our mission to provide innovative practical training that aligns with the demands of the current economy that results in good jobs and career advancement," commented Diane Brunner, President of Davis University. "In addition, we anticipate strong demand coming from India in terms of the three-year Optional Practical Training program for international students who have F-1 immigration status."

EpicQuest Education's Recruiting Office in Sri Lanka

EpicQuest Education recently opened a recruiting office in Sri Lanka to serve as its main hub to attract students from Southeast Asia and the Middle East to expand its geographical market for international student recruiting. The Company believes that India, in particular, represents a huge recruiting market which will be attractive for Davis University's degree programs in technology, including its two new STEM degree programs. The Company believes that its practical training program in STEM coursework will allow students from India who can access OPT to gain valuable work experience in the US which can build a strong foundation for a wide array of careers.

HLC's Previous Approval of Davis University's Online Programs

Previously, the Higher Learning Commission (HLC) approved Davis University in September 2023 for all of its education courses and programs that are offered online. HLC indicated that since Davis has met the threshold requirement for online education, that it does not need to seek further online education approvals from the HLC. The HLC is an independent corporation that is one of seven regional accreditors in the US that accredits degree-granting post-secondary educational institutions.

EpicQuest Education's Mission of Internationalization

The Company believes that internationalization is a key element of its strategic growth plan. EpicQuest Education's growth plan is to have its operated colleges, Davis University and EduGlobal College, become increasingly focused on international recruiting and enhanced globalized learning to its students as well as pathways to achieve university degrees. The Company's strategic growth plan is to achieve international expansion and establish EEIQ as a truly international service provider of higher learning.

About Davis University

Davis University ("Davis") is a private career-training university located in Toledo, Ohio. Davis offers a specialized professional career training curriculum in numerous fields, and its mission is to provide marketable skills that enhance the employability of its graduates. Davis offers coursework flexibility to ensure program success as well as externship opportunities that provide its student population with real-world skill sets prior to graduation. In addition to its offering numerous two-year Associates degree programs and a four-year Bachelor of Science in Business degree, Davis has agreements with several four-year US universities for 'transfer pathways' that pave the way for its associate degree students to gain admission with the ability to transfer earned course credits. Davis University is accredited by The Higher Learning Commission and the Ohio State Board of Career University and Schools with programs authorized by the Ohio Board of Higher Education. For more information, please visit https://davisuniversity.edu/.

About EpicQuest Education Group International Limited

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

Safe Harbor Statement

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 increase in the expected number of students from China and the increased amount of the revenue that may be received from the recruitment of students from China and India.  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.

Contacts:

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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SOURCE EpicQuest Education Group International Limited

FAQ

How many STEM degree programs were approved at Davis University by the Higher Learning Commission?

Two STEM degree programs, an Associate of Applied Science in Data Science and an Associate of Applied Science in Computer Engineering, were approved.

What is the expected impact of the approved programs on revenue for EpicQuest Education?

The approved programs are expected to lead to a substantial increase in revenue from tuition and service fees for the fiscal year.

What is the percentage increase in Indian students travelling to the US for higher education?

The number of Indian students travelling to the US for higher education increased by 35%.

What is the purpose of the Optional Training Program (OPT) for international students?

The OPT grants students up to three years of temporary employment authorization in the US to gain work experience and contribute to the US economy.

Where did EpicQuest Education recently open a recruiting office?

EpicQuest Education recently opened a recruiting office in Sri Lanka.

What was the previous approval granted to Davis University by the Higher Learning Commission?

Previously, HLC approved Davis University for all of its education courses and programs offered online.

What is EpicQuest Education's strategic growth plan focused on?

EpicQuest Education's strategic growth plan is focused on international expansion and establishing EEIQ as an international service provider of higher learning.