PRP Initiate’s Coverage on American Education Center Inc. (OTCQB: AMCT) with a Undervalued View

ORLANDO, FL / ACCESSWIRE / July 19, 2017 / We initiate coverage on American Education Center Inc. (OTCQB: AMCT) with a undervalued view. AMCT engages in international education exchange between China and the United States, by providing education and career enrichment opportunities for students, teachers, and educational institutions from both countries. The services include admission applications, accommodations, and other consulting services to Chinese students who wish to study in the United States, placement services to qualified American educators to teach and live in China, as well as US relocation services to employees of multi-national companies with US operations.

The demand for global education is growing rapidly in China, and the United States remains the top choice for Chinese students wishing to study abroad (~369,000 admissions to US in 2016). Consequently, there has been a surge in the demand for various support and services including education consulting services. We believe AMCT is well positioned to benefit from these trends. Further, the acquisition of AEC Southern and recent strategic agreement with a consultant in China is expected to provide fillip to revenues in the near term. Though the recent rhetoric from the current administration in the US regarding visa and immigration remains a key risk. We are bullish on its prospects and believe the stock is undervalued at the current levels.

Other Excerpts:

New strategic agreements and M&A to boost growth: AMCT acquired AEC Southern (Shenzhen) Management Co Ltd. in Dec 2016 as a first step of its inorganic growth strategy. Using AEC Southern as a platform for expansion, AMCT expects to enhance its educational and industrial training businesses through the addition of China-based companies and personnel in complementary areas of activity. Recently, AMCT recently entered into a service agreement with an education and training consultant in China to secure contracts on behalf of AEC Southern. The consultant will provide business development services to AEC Southern. As compensation for these services, the Company has issued 6,000,000 shares of its common stock to AEC Southern’s consultant, and may issue up to 4,000,000 additional shares, over time, and subject to specific revenue generation milestones.

The consultant has decades of experience in providing education and training services in this dynamically growing region, one of China’s Special Economic Zones. We believe that AEC Southern can provide significant contributions to the Company’s revenues and earnings in the coming quarters. The Company plans to further engage in acquiring other education consulting Chinese companies. M&A will help the Company acquire additional customer base, thereby providing fillip to revenue. AMCT plans to acquire such target companies by a combination of cash payment and issuance of equity.

Aggressive marketing strategies to drive student growth: AMCT continues to employ various marketing methods including referrals, seminars, public events and others to attract new students, institutions, and teachers.

Referrals. AMCT continues to benefit from word-of-mouth referrals by the current and former customers.

Public Events and seminars. For several years, AMCT has successfully hosted the ESL (English as a Second Language) Annual Conference in China, which annually hosts over 500 attendees. The company is planning to continue the annual conference this year as well. AMCT plans to host marketing events in New York City to promote the Company’s services and brand name. In addition, the Company regularly attends higher education conferences held annually to further promote and market its services.

Sponsorships. AMCT is a regular sponsor of Chinese Student Associations in various higher education institutions in the Greater New York Area. It regularly promotes its services to members and students of the various Chinese Student Associations and is regularly present at events held by such Associations.

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