Trading Update
Meten International Education Group, a leading
provider of English language training and future skills in China,
today issues an update on current trading.
The Company, who entered into a merger agreement
with EdtechX Holdings (NASDAQ :EDTX) on December 12th 2019 to
form a new entity Meten-EdtechX, has closed
financial year 2019 with gross billings in line with management
expectations, and consequently, Meten is on track to meet its 2021
targets of RMB 301.1 million adjusted EBITDA and RMB 230.0 adjusted
net income.
Driven by a combination of continuous
enhancements to the Company’s digital offering and the impact of
the coronavirus epidemic on the Chinese education industry, gross
billings for Meten’s online courses increased approximately 287%
year-on-year for the period between 1st and 17th February 2020. The
number of new paying users during this period grew by 119%
year-on-year.
In an effort to contain the virus, the Chinese
Ministry of Education and its local Education Bureaus have
instructed schools to postpone the start of their spring term until
the end of February, at the earliest. As a result, Meten learning
centres across China remain closed at present.
Given the gradual decline in the number of newly
confirmed cases over the past week, business activities in China’s
major cities have started to resume. As such, Meten will also
re-open its learning centres as soon as it is permitted to do so by
the Chinese Ministry of Education and local Education Bureaus.
The Company’s omnichannel business model has
allowed it to maintain continuous service throughout this time of
crisis. All existing offline students have been offered a 1-month
rollover on their 18-month contracts with Meten and the option to
use this one-month tuition credit immediately on the Likeshuo
platform.
As part of its relief efforts, in the Hubei
Province, Meten is currently providing free online English courses
for primary and secondary school students, delivered by its high
calibre teaching team. School teachers in the affected areas are
also given the opportunity to utilise Meten’s online platform free
of charge to deliver courses in other subjects to their
students.
Alan Peng, Chief Executive Officer of
Meten International Education Group, commented:
“We would like to extend our deepest sympathies
to those who have been affected by the coronavirus epidemic. Our
priority for the coming weeks is to continue to meet the needs of
our customers whilst protecting the health and safety of our
employees and providing support for those affected by the
epidemic.
“Our Group will continue to abide by Government
guidelines regarding face-to-face tuition. Once social order and
normal course of business have been restored, we expect a
significant rebound in demand for our offline services.”
-ends-
About Meten International Education Group
Meten is a leading ELT service provider in
China, delivering English language and future skills training for
Chinese students and professionals.
Through a sophisticated digital platform and
nationwide network of learning centers, Meten provides its services
under three industry-leading brands; Meten (adult and junior ELT
services); ABC (primarily junior ELT services) and Likeshuo (online
ELT). Superior teaching quality and student satisfaction is
underpinned by cutting edge technology deployed across the
business, including AI-driven centralized teaching and management
systems which record and analyze learning processes in real time.
Meten is committed to improving the overall English language
competence and competitiveness of the Chinese population to keep
apace with the rapid development of globalization. The company’s
experienced management is focused on further developing its digital
platform and expanding its network of learning centers to deliver a
continually evolving service offering to a growing number of
students across China.
About EdtechX Holdings Acquisition
Corp.
EdtechX Holdings Acquisition Corp.,
headquartered in London UK, is public acquisition company sponsored
by affiliates of a specialist “edtech” investment bank, IBIS
Capital, and Azimut Enterprises, a Milan based global asset
management firm with approximately $61 billion in AUM. EdtechX
listed in the Nasdaq on October 2018, as a Special Purpose
Acquisition Company (“SPAC”) with a primary focus on the education,
training and edtech sectors globally.
EdtechX is led by Chief Executive Officer,
Benjamin Vedrenne-Cloquet, and Chairman and Chief Investment
Officer, Charles McIntyre. Benjamin and Charles are long standing
business partners and have built businesses in the edtech, media
and financial services sectors. Together, they lead IBIS Capital, a
leading specialist education and edtech focused investment bank
whose advisory arm was involved in the acquisition of Wall Street
English China in 2018. In 2013, Charles and Benjamin also
co-founded EdtechX Global, a world leading conference and insight
network across Europe, Asia and China, gathering over 10,000
companies and 2000 industry leaders, innovators and influencers in
the education, training and edtech industries. In addition, Charles
McIntyre is Chairman of Learnlight, a leading English tutoring
digital platform for corporates. Benjamin Vedrenne-Cloquet is also
Chairman of the Board of CFBL (a French English Bilingual College
in London).
See Investors Relation webiste: Meten
EdTechX
See Introduction Video
-------------
Additional Information and Where to Find
It
EdtechX intends to hold presentations for
certain of its stockholders, as well as other persons who might be
interested in purchasing EdtechX’s securities, in connection with
the proposed business combination between EdtechX and Meten, as
described in EdtechX’s current report on Form 8-K filed with the
Securities and Exchange Commission (“SEC”) on December 16, 2019,
and the preliminary proxy statement filed with the SEC on January
9, 2020 and the Registration Statement on Form F-4 filed with the
SEC by Meten EdtechX Education Group Limited (“Holdco”) on January
9, 2020, as amended on February 13, 2020, and other relevant
documents. INVESTORS AND SECURITY HOLDERS OF EDTECHX, METEN AND NEW
HOLDCO ARE URGED TO READ THE PROXY STATEMENT, PROSPECTUS AND OTHER
RELEVANT DOCUMENTS THAT HAVE BEEN AND WILL BE FILED WITH THE SEC
CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE
THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED
TRANSACTION. Investors and security holders will be able to obtain
free copies of the proxy statement, prospectus and other documents
containing important information about EdtechX, Meten and Holdco
once such documents are filed with the SEC, through the website
maintained by the SEC at http://www.sec.gov. Copies of the
documents filed with the SEC by EdtechX and/or Holdco when and if
available, can be obtained free of charge by directing a written
request to EdtechX at yweng@chardan.com; and/or by directing a
written request to Meten at Wendy.Zhai@macquarie.com
Participants in the
Solicitation
EdtechX and Meten and their respective directors
and executive officers, under SEC rules, may be deemed to be
participants in the solicitation of proxies of EdtechX’s
stockholders in connection with the proposed transaction. Investors
and security holders may obtain more detailed information regarding
the names and interests in the proposed transaction of EdtechX’s
directors and officers in EdtechX’s filings with the SEC, including
EdtechX’s Annual Report on Form10-K for the fiscal year ended
December 31, 2018. Information regarding the persons who may,
under SEC rules, be deemed participants in the solicitation of
proxies to EdtechX’s stockholders in connection with the proposed
business combination, along with additional information regarding
the interests of participants in the solicitation of proxies, is
set forth in the registration statement for the proposed business
combination filed by Holdco with the SEC and in the preliminary
proxy statement filed by EdtechX with the SEC.
No Offer or Solicitation
This communication shall neither constitute an
offer to sell or the solicitation of an offer to buy any
securities, nor shall there be any sale of securities in any
jurisdiction in which the offer, solicitation or sale would be
unlawful prior to the registration or qualification under the
securities laws of any such jurisdiction.
- Meten EdTechX
- Meten-EdtechX-1
Contact:
Investors Relation:
Website: http://investor.metenedu-edtechx.com/
CitiGate Dewe Rogerson (London)
Tel: +44 (0)20 3926 8538
Email: lucy.eyles@citigatedewerogerson.com
Capital Market inquiries:
Chardan (New York): Macquarie (Hong Kong):
Yingjie Weng: yweng@chardan.com Wendy Zhai: Wendy.Zhai@macquarie.com
Company:
EdtechX Holdings: hello@edtechxcorp.com
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