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EastBridge (EBIG): New Joint Venture Business Model Could Pay Off

EastBridge (EBIG): New Joint Venture Business Model Could Pay Off

EastBridge Investment Group Inc. (OTCBB: EBIG), a provider of financial services to emerging companies looking to go public on U.S. exchanges, has recently been focused on helping U.S. companies expand into foreign markets via joint ventures. Its first client is Cambrium Learning Group Inc. (NASDAQ: ABCD), which is looking to partner with Chinese education companies similar to ChinaEdu Corporation (NASDAQ: CEDU).

Cambrium Looks to Partner in China

With its expertise in China’s growing marketplace, EastBridge is uniquely positioned to offer U.S. companies exposure to emerging economies. In May of 2011, Cambrium Learning entered into a consulting agreement with the EastBridge to seek out opportunities in China for joint ventures, partnerships and merger & acquisition (M&A) work.

Under the 12-month agreement, EastBridge will receive a cash fee of 10% of the total revenue derived from each business venture resulting from an introduction by the company, paid quarterly over a maximum of three years and with a $50,000 non-refundable advance paid at closing, according to an 8-K filing with the SEC.

Mr. Keith Wong, CEO of EastBridge, commented, “Cambium is a great company with a rich suite of products for online applications. Many of their K-12 products can be adapted to students in China, which has a total elementary, junior and high school student population of more than 200 million. We are very excited to be retained as a consultant to help them seek out opportunities in China for joint ventures, partnerships and merger & acquisition (M&A) work. We have substantial experience in China to help our clients achieve their expansionary goals.”

JV Business Model Could Pay Off Long-term

EastBridge’s primary business of helping emerging companies obtain a listing on U.S. stock exchanges involves lengthy timeframes and approvals. In contrast, the joint venture model is a relatively straightforward private business transaction. And since the payout is tied to revenues, it provides shareholders with a virtual equity stake in the company.

Currently, the majority of the company’s 14 clients are utilizing other services, but the joint venture model could be expanded moving forward. After all, the slowdown in the U.S. and E.U.  is forcing many companies to look to emerging markets in Asia for growth potential. These agreements would provide faster revenues with economics similar to its standard services.

For more information about EastBridge, please see the following resources:

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MU Pilots to Improve English for Flight Safety

MU Pilots to Improve English for Flight Safety

China Eastern Airlines (NYSE:CEA) has promised to further develop its pilots English after claims flight MU516 from Osaka, Kansai airport to Shanghai took off without clearance from air traffic controllers.

The aircraft bound for Shanghai with 245 people on board took off last week apparently after being told to stay on the runway and then to abort take off at Osaka airport, the BBC reported.

According to Kyodo news agency, air traffic controllers instructed the aircraft’s pilots to halt on the runway instead the Airbus A330 took to the skies and further ignored instructions to abort.

Despite the misunderstanding the plane took off without incident and later landed safely in Shanghai.

Japan’s Transport Minister said that even though the aircraft had sufficient room from any other nearby aircraft, the pilot may have broken the country’s aviation rules and regulations.

An employee at China Civil Aviation Administration apparently told China Daily “We’ve written to our Japanese counterparts asking for materials to help us look into the case.”

On the airlines certified Sina Weibo page the Airline said it will “operate according to laws and regulations, and further regulate our flight crews English communications”, to guarantee flight safety.

Under the International Civil Aviation Organisation pilots and air traffic controllers have to meet a certain standard and understanding of the English language.

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EastBridge (EBIG): Capitalizing on China’s Education Sector

EastBridge (EBIG): Capitalizing on China’s Education Sector

EastBridge Investment Group Corp (OTCBB: EBIG), a provider of financial services designed to help emerging companies access U.S. capital markets, is poised to capitalize on China’s rapidly growing education sector. Its clients, Tsingda and Wonder Education, operate alongside companies like Global Education & Technology Group (NASDAQ: GEDU), which has more than doubled since it agreed to be acquired, and Chinacast Education Corporation (NASDAQ: CAST), which has been trading 30% higher amid M&A talks, last week.

China’s Enormous Education Market

China has approximately 400 million students in its educational system and a 99% attendance rate to primary school. With more than 70,000 private schools opening since the 1980s and significantly higher spending on education as a percentage of income than the United States, the country has become a great opportunity for for-profit educational institutions.

The growth in the market can be clearly seen in the results of some larger companies in the space. For instance, the industry’s largest publicly traded company, New Oriental Education, saw revenues that grew from $132 million to more than $557 million between 2007 and 2011, while its net income more than tripled from 20 cents to 65 cents per share.

Cottage industries surrounding this vast educational industry are also rapidly growing. For example, after school programs are far more popular in China than the U.S., while vocational schools have been soaring in popularity as a quick way to gain an education and find a job without spending years in a traditional university.

Wonder and Tsingda Offer Great Exposure

EastBridge Investment Group owns approximately 3.4 million shares of Wonder Education and more than 2 million shares of Tsingda Education, according to regulatory filings made with the SEC. These two companies represent strong and rapidly growing companies within the booming for-profit education market in China, making them very valuable for EBIG shareholders.

Tsingda Education is a leading provider of online educational services in China, offering classes through pre-recorded lessons and in real-time via its virtual internet classroom. As of December of last year, the company operated 2,346 learning centers across the country, including 21 company-owned and 2,325 franchised locations.

Wonder Education has been named one of China’s ten major brands in computer education for several years by the Ministry of Information Industry, the Ministry of Labor and Social Security and Computer World. The company’s seven vocational schools have relationships with more than 20 provinces and municipalities and serve more than 12,000 students.

A Great Investment Opportunity

EastBridge Investment Group unlocks value for shareholders in several ways. First, the company offers equity dividends to its shareholders. Second, the remaining equity is held on its books as a valuable liquid asset. And finally, any stock that is sold is booked as revenues and net income that help drive growth moving forward.

Meanwhile, earnings multiples for China’s education sector continue to look strong with several recent buyouts. The average P/E in the education industry stands at about 22x, which is the highest in the country and compares favorable to the 16.3x average. And with an average market capitalization of $621.8 million, it’s also one of the most valuable industries.

The company’s stakes in Tsingda Education and Wonder Education could unlock significant value in its shares. Despite some market issues during the past few months,, the company is moving forward towards listing Tsingda and Wonder on a U.S. exchange, while both companies look for opportunities  to grow its business. With these near-term catalysts in mind, investors may want to take a closer look at EastBridge.

To learn more about EastBridge, see the following links:

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EastBridge (EBIG) Releases AREM Pacific Investor Factsheet

EastBridge (EBIG) Releases AREM Pacific Investor Factsheet

EastBridge Investment Group Inc. (OTCBB: EBIG), a provider of financial services to emerging companies looking to go public on U.S. exchanges and those looking to form joint ventures, recently released an investor factsheet on client AREM Pacific Corporation. AREM Pacific is Chinese luxury resort developer similar to companies like Jinling Hotel Corporation Ltd. (SHA: 601007) and Shanghai Jinjiang International Hotels Development (SHA: 900934).

AREM Pacific Business Overview

AREM Pacific Corporation began as an Australian winery and small marine leisure boat manufacturer in China, but has since become the first U.S. company setting up exclusive air-water-land resort and convention centers in China. Bringing together houseboats, aerochutes, seaplanes, and water recreation facilities, the company plans on offering a wide range of activities in many locations around six premium lakes and two ocean front locations. AREM Pacific offers a diversified investment opportunity in hotels, food & beverage, and other hospitality elements.

Recent financial results include:

  • Revenue 2008 :  $103,754  ,  Net Income: ($7,825) (audited)
  • Revenue 2009 :  $121548,  Net Income: $4,111 (audited)
  • Revenue 2010 : $100,821, Net Income: $4,437 (audited)

AREM Pacific Market Overview

China is the world’s third most visited country in the world. The number of overseas tourists was 55.98 million in 2010. As for the domestic demand, there are over 100 million Chinese whose incomes are commensurate with the incomes of the developed countries; yet, they have not had an opportunity to access these high end integrated resort facilities, because these facilities do not exist thus far in China. As a result, AREM believe there is a strong pent up demand.

AREM Pacific’s highlights within this market include:

  • Signed several master water front leaseholds at below market rates
  • When finished, these will be show case air-water-land resort & convention centers in China
  • Subleasing the land to the hospitality operators, who will build and operate their own sites
  • Low capital requirement and high ROI in a short time

AREM Pacific’s Recent Achievements

  • Signed a 40-year master leasehold on a lake front shore line with a total land area of 285 acres in Hunan, China. The lease cost is at a substantial discount to the market price, and the land will be developed into an air-water-land resort & convention center. A prominent hotel has already signed a sublease to use a parcel of the land to build and run a hotel on site for retail customers. AREM will put in a convention and resort center for conventioneers, together with private villas on the site.
  • Master leaseholds on five lakes and two ocean front land properties in China are being negotiated. AREM will also sublease these spaces out to the hospitality operators.
  • Exclusive distribution agreements in China for the aerochutes, sky cars, private hydro planes, houseboats and yachts from Australia have been signed. These vendors are ready to provide equipment at substantially reduced costs to AREM.

AREM Pacific Competitive Overview

AREM Pacific is the first and only company that introduces an integrated air-water-land leisure and provides high end hospitality services to China. These services include holiday resorts, conference / exhibition centers, marine facilities offering houseboats, seaplanes, hot air balloons, skycars, aerochutes and private planes.

Similar listed companies include:

  • Jinling Hotel Corporation Ltd. Nanjing provides guest rooms, restaurants and bars, meeting and events services, health and recreation services.
  • New Taohuayuan Culture Tourism Co., Ltd. owns and operates the Taohuayuan Inn hotel and resort, Xi’an offers hotel rooms only.
  • Shanghai Jin Jiang International Hotels Development Co. Ltd. is principally engaged in management and operation of hotels and restaurants.

About EastBridge Investment Group

EastBridge Investment Group focuses on high-growth companies in Asia, offering IPOs, Joint Ventures and Merchant Banking services. The Company targets industries in the education, internet, energy, mining and service sectors. To learn more about EastBridge Investment Group go to our web site: www.EbigCorp.com. To receive EBIG’s email alert, send a blank email to info@EbigCorp.com. Join us on Facebook at the following link: http://www.facebook.com/ebigcorp.

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