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NetDragon Seals Landmark Deal to Take Education Unit Public on NYSE in First-of-its-Kind Move

On April 18, Chinese education technology company NetDragon Websoft Inc. has announced a merger deal that will combine its core overseas education division with Gravitas Education Holdings Inc., a US-based firm listed on the New York Stock Exchange. Through the transaction, NetDragon will spin off its overseas education business, valued at $750 million, merging it into Gravitas.

Upon completion of the merger, expected by the third quarter of this year, the combined company will be renamed MYND.AI. NetDragon will hold around 72.9% of shares in MYND.AI, while Gravitas invested $50 million and will retain 100% ownership of the new subsidiary housing NetDragon's international operations. For its part, Gravitas will have sold off all businesses except a profitable Singapore education program generating steady cash flow.

MYND.AI will benefit from independent leadership and governance, with a board composed of professionals known for boosting shareholder value. As a publicly-traded entity on the NYSE, it gains a stage to laser-focus its strategic vision and operations, unlocking its “true capital value”. The demerger also liberates MYND.AI to pursue a wider range of financing options to fuel growth. The company can work with strategic partners and launch a registered follow-on offering to firm up its financial foundation. Additionally, MYND.AI's autonomous governance will greatly assist the long-term development of its education export business. Being self-regulated assures compliance with all pertinent rules and regulations.

“The decision to spin off our overseas education business advances our ability to create value for customers and shareholders. Our business is at an exciting market inflection point as the world moves toward accelerating the application of AI in virtually all industries. We believe we are well ahead of the market in pushing forward the effective and practical use of AI in education, especially in the classroom,” said Dr. Simon Leung, vice chairman of NetDragon and chairman of MYND.AI, upon closing of the transaction. “As we execute our plan to transform education with AI, this spinoff transaction will provide the right platform for the MYND.AI team to pursue our goal of becoming the dominant category leader in the AI-enabled classroom technology space. We are excited about our path ahead, and I want to thank our shareholders for their support as we embark on this journey together.”

“As the classroom evolves, we continue to look to the future to provide innovative educational technology solutions that transform teaching and learning. We are excited to be at the forefront of integrating AI into our products that will add true education value, leveraging our investment in AI technology and our deep understanding of customer needs over the past 25 years,” said Vin Riera, CEO at Promethean and MYND.AI, upon closing of the transaction. “This exciting new chapter will build on our mission to design learning and collaboration tools that deliver the most effective learning outcomes for teachers and students.”