{"id":21880,"date":"2023-09-08T20:05:00","date_gmt":"2023-09-08T20:05:00","guid":{"rendered":"https:\/\/www.prnasia.com\/story\/archive\/4204130_CN04130_0"},"modified":"2023-09-08T20:05:00","modified_gmt":"2023-09-08T20:05:00","slug":"gravitas-education-holdings-inc-reports-first-half-2023-financial-results","status":"publish","type":"post","link":"https:\/\/transmediavictoria.net.au\/?p=21880","title":{"rendered":"Gravitas Education Holdings, Inc. Reports First Half 2023 Financial Results"},"content":{"rendered":"
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BEIJING<\/span>, Sept. 9, 2023 \/PRNewswire\/ — Gravitas Education Holdings, Inc. <\/b>(“GEHI” or the “Company”) (NYSE: GEHI), a leading early childhood education service provider in China and Singapore<\/span>, today announced its unaudited financial results for the first half of 2023.<\/span><\/p>\n

The Company’s<\/b> Acquisition of eLMTree and Divestiture of its PRC Business<\/b><\/p>\n

The Company announced on April 18, 2023<\/span>, that it has entered into an agreement and plan of merger (the “Merger Agreement”), dated April 18, 2023<\/span>, with Bright Sunlight Limited, a Cayman Islands<\/span> exempted company and a direct, wholly owned subsidiary of the Company (the “Merger Sub”), Best Assistant Education Online Limited, a Cayman Islands<\/span> exempted company (“Best Assistant”) and a controlled subsidiary of NetDragon Websoft Holdings Limited (HKEX: 0777, “NetDragon”), a Cayman Islands<\/span> exempted company, and solely for purposes of certain named sections thereof, NetDragon. It is contemplated that Best Assistant will transfer the education business of NetDragon outside of the PRC to Elmtree Inc., a Cayman Islands<\/span> exempted company limited by shares (“eLMTree”) and currently a wholly owned subsidiary of Best Assistant. Pursuant to the Merger Agreement, Merger Sub will merge with and into eLMTree with eLMTree continuing as the surviving company and becoming a wholly owned subsidiary of the Company (the “Merger”).<\/p>\n

Concurrent with the execution of the Merger Agreement, the Company has entered into a share purchase agreement (the “Divestiture Agreement”) with Rainbow Companion, Inc. (the “Divestiture Purchaser”), a purchaser consortium formed by Joy Year Limited, Bloom Star Limited, Ascendent Rainbow (Cayman) Limited (and its affiliates), Trump Creation Limited and China Growth Capital Limited. Pursuant to the Divestiture Agreement, immediately prior to the Closing, the Company will transfer all its education business in China<\/span> to the Divestiture Purchaser (the “Divestiture”). Upon completion of the Divestiture, the Company will cease to operate any education business in China<\/span>.<\/p>\n

As the Company will divest its China<\/span> business, the Company’s China<\/span> operations and its associated assets and liabilities have been reclassified as discontinued operations in the financial results. After the Divestiture, the Company’s Singapore<\/span> operations and its associated assets and liabilities will continue to remain with the Company. As the Merger has not closed, the financial information of eLMTree is not included in the Company’s financial results for the first six months of 2023. For the unaudited pro forma condensed combined financial information which presents the combined financial information of the Company following the Divestiture and eLMTree after giving effect to the Merger, please refer to the proxy statement for extraordinary general meeting of the Company that was included in our current report on Form 6-K filed with the Securities and Exchange Commission on July 31, 2023<\/span>.<\/p>\n

First Six Months of 202<\/b>3<\/b> Financial Results <\/b><\/p>\n