Higher Education Inquirer : china hustle

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Thursday, October 10, 2024

Ambow's HybriU. Is any of this real?

Ambow Education is at it again, pumping up its stock with another edtech business deal. This time, they sent out a press release that a Singapore company called Inspiring Futures has reached a $1.3M deal for licensing Ambow's 3D learning platform HybriU. Shares of AMBO soared more than 200 percent on the news. In April, Ambow appeared at the ASU+GSV conference to pitch its latest technology.

The Ambow Sales Pitch for HybriU

"HybriU is currently the only available 5-in-1 total solution. It seamlessly integrates AI—empowering five key domains: teaching, learning, connectivity, recording, and management—along with lecture capture, immersive technology, and a comprehensive management platform designed specifically for the education sector. HybriU delivers a unified learning experience that transcends the boundaries of both online and offline education, bridges language and regional divides, and connects academia with industry."

"HybriU's cutting-edge 3D solution includes 3D signal capture, recording, transformation, and remote display capabilities. It supports broadcasting life-sized 3D projections of professors in remote classrooms via a 3D LED wall, enabling a highly immersive learning experience. Learners can engage in their native language while interacting with the 3D content, making the platform accessible and effective across diverse linguistic and regional boundaries."

But is any of this technology real? We know of no schools currently using HybriU. And there are no video presentations available online. We have reached out to experts in edtech to evaluate Ambow's claims for the technology and will provide a follow up when we learn more.

Inspiring Futures?

Inspiring Futures, the Singapore company that made the deal with Ambow for licensing HibriU, was created four months ago and employs three people. Its headquarters is in an outlet mall.

Ambow also operates out of a small space in Cupertino, California, after its move from the People's Republic of China. Ambow still owns and operates NewSchool, a real college in San Diego, California, that has been declining in enrollment.

Monday, February 19, 2024

Ambow Education Continues to School Naive Investors

The Higher Education Inquirer has been tracking Ambow Education (AMBO) for about two years. Ambow Education is the owner of the NewSchool of Architecture and Design in San Diego (NSAD) and the former owner of Bay State College which closed in 2023. NSAD is facing serious accreditation issues. The only other asset to speak of is an idea called HybriU, which may or may not be a real technology.

Tomorrow, February 20, 2024, Ambow completes a 1-10 reverse stock split to pump up its stock price just enough to avoid delisting from the New York Stock Exchange (NYSE). The company, which until recently was based in Beijing, has a troubled history. At one time it was reportedly valued at $1 Billion. Today it's valued at about $9 million. The latest company headquarters is in a small, rented office space in Cupertino, California.

What we saw in trading on Friday, one business day before the reverse stock split, was alarming: share volume was more than 280 times normal: 70 million shares versus a daily average of about a quarter million. The price more than doubled, from 12 cents a share to 30 cents at close. The highest price was 58 cents, almost five times the day's beginning price. What we were seeing was more than abnormal. Was it stock manipulation? We cannot say.

HEI asked Ambow for a comment but they had no answer for this doubling in value in less than 24 hours and for any news of material change. We also reported the event to the US Securities and Exchange Commission (SEC)--twice in the same day. These reports were in addition to previous complaints to the SEC and the NYSE.

Wednesday, October 4, 2023

The Collapse of Ambow Education and NewSchool of Architecture and Design

Ambow Education, the principal owner of the New School of Architecture and Design (NSAD) in San Diego has been cited by the New York Stock Exchange as a Non Compliant Issuer and risks imminent delisting from the exchange. The warning was delivered on September 21, but the company has yet to notify its shareholders.

The Higher Education Inquirer reported on Ambow's financial problems in May 2022.

In January 2023, Ambow Education's other US school, Bay State College, lost its regional accreditation. After losing its appeal with its accreditor NECHE, Bay State College closed its doors in August. NewSchool of Architcture and Design remains open with less than 300 students. NSAD is currently on Heightened Cash Monitoring by the US Department of Education due to ongoing financial problems.

Saturday, May 28, 2022

Ambow Education Facing Financial Collapse (Dahn Shaulis and Glen McGhee*)

Ambow touts its place on the New York Stock Exchange (NYSE), but that status may be short-lived.

Ambow Education Holding (AMBO) is facing financial peril--again.

The Cayman Islands corporation, with headquarters in Beijing, People's Republic of China, has had financial troubles before. In 2013, the company was liquidated after allegations of financial improprieties.

Ambow Education was reorganized and quickly found enough capital to branch out, as if nothing had happened in 2013. The company now offers a variety of services, including several for-profit K-12 schools in China. Ambow also claims to have patents in a variety of edtech areas, including educational surveillance. *

In 2017 and 2020, Ambow ventured into US for-profit colleges, acquiring Bay State College (BSC) in Boston and NewSchool of Architecture and Design (NSAD) in San Diego.

According to US Securities and Exchange Commission (SEC) reports, Ambow acknowledges that the People's Republic of China has a powerful influence on the company. How this relates to its US holdings is not apparent--but insiders have questioned the role of Chinese executives and their business practices.

In January 2020, Bay State College settled with the Massachusetts Attorney General for $1.1 million for misleading students and for violating state statutes on aggressive telemarketing practices and inflating job placement figures.

And during the Covid pandemic, BSC has worked with Cisco to track students on campus, which may seem intrusive to some Americans.

"Faculty, staff, and students were each issued a lanyard and a badge holder containing a Bluetooth® Low-Energy (BLE) beacon, which they were required to wear visibly at all times while on campus. Each Meraki AP contains a Bluetooth antenna that listens for intermittent pings emitted by the campus ID badge holders. As people move around campus each day, multiple Meraki APs collect and triangulate the beacon data to track and record their relative location over time. The APs collect and warehouse more than 300,000 data points per day...."

Despite the elimination of its physical library and its receipt of US government bailout funds, Bay State College continues to lose money.

Faculty and staff have departed as enrollment has dropped below 700 students. The school is also facing sanctions from its accreditor, the New England Commission of Higher Education (NECHE).

Bay State College enrollment has declined from more than 1700 students in 2012 to less than 700 today.

NewSchool, has a good record with student outcomes, but has faced issues lately with failure to file reports to the California Bureau for Postsecondary Education (BPPE). Like Bay State College, NSAD has continued to lose money--as enrollment has dropped below 500 students--making current practices unsustainable.

Ambow promises to use "shared services" between BSC and NSAD to increase efficiency. This includes the sharing of key executives. And insiders tell the Higher Education Inquirer they believe this model may be useful if Ambow decides to expand its presence in the US. But sharing key executives between two schools, 3000 miles apart, may be in violation of accrediting policies.

Meanwhile, AMBO shares have been selling below $1 a share since December 17, 2021.

Ambow (AMBO) shares have been trading below $1 a share since December 17, 2021, down 99.76 percent from its peak. (Source: Seeking Alpha). Click on graph for a clearer image.

With a second strike (a second delisting) in the US, it's hard to imagine more capital available. But that hasn't stopped the perpetually confident CEO Jin Huang from trying to wrangle another $100 million from unwary investors.

Both the NYSE and SEC have no comment about this impending meltdown.

*Thanks to Glen McGhee for his analysis of Ambow patents.