PAVS News & Events

PAVS and AC Sunshine Securities have mutually agreed to terminate the sales agreement entered into on June 4, and the related at-the-market offering arrangement, effective on June 14. The termination of the Sales Agreement and the ATM offering was made by mutual agreement of the parties and was not the result of any disagreement between the Company and ACSS regarding the terms of the Sales Agreement, the Company's operations, financial disclosures, accounting policies, or practices. As a result of the termination, no further sales of the Company's Class A ordinary shares, par value $0.000012 each, will be made pursuant to the ATM and the Sales Agreement. Prior to the termination, the Company had sold an aggregate of 39,248,940 Class A Ordinary Shares under the ATM program for gross proceeds of approximately $30,967,191 before deducting fees. The Company remains focused on executing its strategic initiatives and advancing its long-term business objectives.

Paranovus Entertainment Technology announced that it has entered into a non-binding Letter of Intent regarding the proposed acquisition of Jabanero, a holding company of a consumer brand focused on women's activewear and lifestyle products. Pursuant to the LOI, the Company is planning to acquire 100% of equity interest of Jabanero, and will pay an aggregate purchase price in the range of $15M and $20M, payable in cash at Closing. The final Purchase Price shall be determined following the completion of the financial, legal and business due diligence review of Jabanero and based on the parties' agreement regarding the valuation of the Jabanero. PAVS will engage an independent and qualified advisor to provide a fairness analysis and report on the consideration to be paid to the shareholders of Jabanero in the proposed acquisition.