Edulink, Inc. Announces Agreement to Acquire Bloomen, a Leading Educational Company in China With Projected Revenue for 2004 of Over $10 Million
1/8/2004 2:05:00 AM
SANTA MONICA, Calif., Jan 8, 2004 (BUSINESS WIRE) -- Charlie Guy, CEO of Edulink, Inc., ( MYIQ ), announced today the signing of a definitive agreement with BonAirGroup Limited, the sole shareholder of Bloomen Limited d/b/a ICUrls.com, operating in China and formerly called OnLine Education Network, a Division of HRDQ, China, relating to Edulink's acquisition of 100% of the stock of Bloomen in return for shares of Edulink's common stock. The number of shares of Edulink's common stock to be issued is conditioned upon various factors which include, among other things, the market price during the five business days prior to closing the transaction and the revenue generated by Bloomen during 2004. The closing is scheduled for January 31, 2004 and is conditioned upon the approval of Edulink's Board of Directors after reviewing and approving additional due diligence materials now being provided by Bloomen, including audited financial statements, material agreements and patent documentation. Bloomen is a leading online learning platform and provider of technology and services to educational markets in China. Bloomen currently has a customer base which includes in excess of 2,000 schools, 2 million students, 1 million parents, 45,000 teachers and 840 enterprises. Bloomen has generated revenue in 2003 of $1,800,000 (unaudited), and projects revenue in 2004 of over $10 Million.
The acquisition agreement follows a Memorandum of Understanding which was concluded in November, 2003. It is intended that following the closing of the acquisition, ICUrls.com will operate as a subsidiary of Edulink, with Bloomen's current management to remain in place.
Michael Rosenfeld, Chairman of Edulink, stated: "Our second stage due diligence activities over the last six weeks only reinforced our view that with the integration of our eKnowledgeXchange System and Bloomen's Platform, the existing Bloomen penetration into the ever growing education and corporate training markets in China should increase in a manner which well exceeds current expectations, meaning corresponding increases in pre-acquisition projected revenue and profits."
Charlie Guy reiterated his prior statement that, "This acquisition would be consistent with our goal in moving to penetrate education markets outside of the US. In this particular case, the acquisition would immediately provide significant net profits to Edulink and thus great value for our shareholders. Moreover, the integration of portions of the technology applications included within the Bloomen Platform, when integrated into our System, should serve to reduce the development costs we had anticipated expending for purposes of exploiting our System in other vertical markets."
About Bloomen
Bloomen is a leading online learning platform and provider of technology and services to educational markets in China. The Company designs, builds and supports some of the most successful, fully online degree, certificate and corporate training development programs in the China. Bloomen's customers include public and private universities, school districts, community colleges, and government agencies of education. The Company was founded in 2001 and is headquartered in Guangzhou, China. For more information, visit www.ICUrls.com. Bloomen's online platform content management system has established a process for institutions to manage create, edit, approve and publish content to ensure quality control and productivity, and allows a content object to exist across multiple courses, departments and schools, yet be updated in one central location, so teachers can easily reuse content throughout their programs. The platform enables course authors to retrieve previous versions so they can track and review the history of changes made to the content object to confirm quality and accuracy. The platform gives administrators permission to easily see where content is being used across the campus so they can verify standardization and ensure quality. It provides a framework for professional and consistent content delivery, so teachers can efficiently facilitate more advanced course authoring.
Bloomen, through IC China network, links educational and training services to local communities across China.
About Edulink
Edulink's current business focus is on the near and long term opportunities to implement a series of revenue generating products and services built upon our knowledge sharing system's core technologies known as the eKnowledgeXchange. The Company's focus is not limited to the US K-12 market, but includes implementation in the international education marketplace as well as the utilization of these same core technologies to deploy revenue-generating models outside of the education market.
Edulink's core technology system, developed by its technology integration partner SAIC, and market tested over the last several years, is based on the integration of the three core foundations for digital asset or eKnowledge management: Storage & Retrieval, Repurposing, and Distribution. The eKnowledgeXchange will allow for the personalized, secure and managed delivery of enhanced digitized assets or eknowledge utilizing one of our four proprietary delivery systems: the Internet, CD-ROM/DVD, Traditional Print, or e-Print on Demand. EKnowledge is knowledge, as it exists in a profoundly networked world. It is not just a digitized collection of knowledge. eKnowledge consists of knowledge objects and knowledge flows that combine content, context, and insights on application. The new Web site is located at www.eKnowledgeExchange.com.
Forward-Looking Statement:
This announcement contains forward-looking statements that involve risks and uncertainties, including those relating to the ability of Edulink, Inc. to grow its related businesses and/or consummate anticipated service or distribution or acquisition agreements. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the limited operating history of Edulink, the Company's limited financial resources, domestic or global economic conditions, especially those relating to the operations in China, activities of competitors and the presence of new or additional competitors, and conditions of equity markets. More information about the potential factors that could affect Edulink's business and financial results is included in Edulink's filings, available via the United States Securities & Exchange Commission.
SOURCE: Edulink, Inc.
in effect as of the 31st... that could be it?!
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