CALGARY, Alberta--(BUSINESS WIRE)--Access International Education Ltd. (AOE – TSX Venture Exchange) (“Access” or the “Company”) wishes to announce the signing of a Co-operative Agreement with Heshun Education Development Co. Ltd. of Guangzhou ("Heshun") in the setting up and running of an international division in one of Heshun's schools in Guangdong, namely Tian An Private School of Zengcheng, Guangdong ("Tian An").
Tian An is one of the many private schools owned by Heshun in the Guangdong area. The school has been in operation for 14 years and has been catering to students from Grade 1 to Grade 12 under the Chinese curriculum and education system.
Currently there are over 700 students enrolled in Tian An paying an annual tuition fee of ￥16,000 RMB ($2,580 CAD). The objective of this Cooperative Agreement is to move all or most of these students from the current Chinese curriculum and education system into our newly formed International Division called Zengcheng Access International School, where dual language teaching and curriculum will take place. This is to emerge over the next three year period. Access will be responsible for the administration, management, teachers recruitment and curriculum preparation and presentation under a more westernized environment. The new annual tuition fees for students studying at the International Division will be ￥55,000 RMB ($8,880 CAD) of which Access and Heshun will split the new tuitions under a 45/55 ratio for a period of 30 years from the date of signing of this Agreement.
Heshun will be responsible for the provision of the existing school licensing, school land, building and facilities as well as the upgrading of all existing facilities to an international standard including the building of a new swimming pool, library and cafeteria over the next three years. Access will be further responsible for the interior design, decorations, equipment and furnishings to our recognized Canadian school standards for the first four classrooms and twelve bedrooms for students in the new international division of the school for a total budget of no more than ￥500,000 RMB to be spent before April 30, 2012.
Both parties will do their utmost to have new International Division ready for operations for test classes before April 30, 2012, summer camp before June 30, 2012 and full fall term of studies before August 31, 2012.
The Company continues to enjoy success with its operations and enrolment at the Canadian International School in Yantai, Shandong of which the student population has increased from 43 in September to 94 as of date. Full capacity is still aimed at 450 students over the next three years. Each of these school operations are aimed to generate around $10 million CAD per year in gross revenue with 30% net margin upon the three years growth and maturity cycle as planned.
Management will use the success model of these two schools to duplicate at different cities with various school operators as part of our expansion plan for the provision of international and modern westernized education across China.
For and On Behalf of
Access International Education Ltd.
(Signed)
_____________________________
Chris Gee
President & CEO
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