Cloud Nine Expands Canadian & Asian Footprints, Eyes Billion Dollar Markets

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Wednesday, May 29, 2019

English is commonly referred to as the “lingua franca,” or a language used as a medium of communication by people whose native languages are different.  To that end, it has also earned the nickname, the “global language,” “trade language,” “contract language” and the like to cover how vital it is to business and science across the world. 

Safe to say that learning Mother Earth’s tongue is becoming a booming business based upon the sheer economic necessity to communicate fluently between different cultures.  Currently, there are almost 2 billion people worldwide using English, meaning the three-quarters of the world’s population is a potential client for companies in the business of teaching ESL (English as a Second Language).

To put into perspective the magnitude of the ESL market opportunity, consider that the U.S. education industry’s revenue is about $1.3 billion annually, compared to $63 billion for the ESL market, according to the CEFR Language Exam Resource Centre.

As with nearly every growing industry, technology and economics are pulling the cart to change educational status quo.  The days of “book learning” are falling to the wayside, replaced by technology of companies like Cloud Nine Education Group Ltd. (CSE:CNI).  The Vancouver-based company is one of a very few public pure plays in the ESL space, establishing itself as a leader with its proprietary cloud-based digital ESL curriculum.

The Cloud Nine ESL Program is built upon international gold standards for ESL education and testing, while incorporating cutting-edge technologies for teachers and students where traditional textbooks are replaced with mobile devices.  Other components include the popular and powerful Google (NASDAQ:GOOGL) products Google Cloud and Google Classroom, which keeps both parties connected whether in the classroom setting or outside it.

Cloud Nine is making quick work of penetrating emerging international markets where ESL is surging in popularity and showered by government support.  The company is well positioned with exceptional competitive advantages to generate strong recurring revenues from its own offerings and white label services, as well as resellers and partners globally. 

This was underlined earlier in May with Cloud Nice penning a reseller agreement with Philippines-based High Access Line Phils. Corp. (HALPC) and HAL-ADFM Marketing.  Through this agreement, Cloud Nine’s ESL Program will be marketed in the lucrative market that is rapidly becoming a hotspot for educational tourism.

“Their comprehensive [Cloud Nine ESL Program], supporting beginners to advanced students, opens up significant new revenue opportunities for our company in the Philippines,” said Ana Marqueza D. De Ocampo, Director of Marketing at HALPC, in a statement on the agreement tapping into the Philippines market.

Elsewhere, Cloud Nice has partnered with Stanstead College in Quebec with two new agreements, one that extends Stanstead’s current summer camp program using the Cloud Nine ESL Program and another that again addresses robust overseas markets.  Per the second agreement, a marketing and referral relationship in Vietnam, a country where Stanstead has a close relationship with a school in Hanoi and plans to build a school of its own in Ho Chi Minh City.

Commenting on the opportunity, Stanstead Headmaster, Michael Wolfe said that after working with Cloud Nine for a year now, the school is confident in the company and technology.  “We believe that, properly marketed, Cloud Nine's ESL Programs could do very well in in Canada and overseas,” he added.

In the last month, shares of CNI have enjoyed a nice climb from 11 cents to as high as 31.5 cents.  As is typical after a 200% climb, shares are pulling back some into the $0.20’s, while holding the uptrend and creating a premium opportunity to consider an entry position in this newly trading stock that still commands a market cap around $2.0 million.

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