Expansion into AI-powered online entertainment industry
reflects strategic evolution of the business model
NANPING, China, Sept. 6,
2023 /PRNewswire/ -- Paranovus Entertainment
Technology Ltd. (Nasdaq: PAVS) (the "Company") today announced that
it has signed a non-binding Letter of Intent (LOI) to acquire 100%
of BlueLine Studios Inc. ("BlueLine"), a portfolio company of
Caravan Digital L.P. ("Caravan"), a co-founder of consumer
companies authentically powered by iconic artists and
athletes in partnership with Creative Artists Agency
("CAA").
The deal is anticipated to close in the fourth quarter of 2023,
provided that the parties reach a definitive agreement and the
Company secures financing of at least
$5 million. The completion of
the deal is subject to customary approvals and closing conditions,
including but not limited to satisfactory completion of due
diligence and the Company's receipt of the payoff letters
pertaining to certain indebtedness of BlueLine.
Under the terms of the LOI, PAVS would acquire 100% of
BlueLine's equity interests from Caravan and other equity owners of
BlueLine. The consideration to be paid by the Company to purchase
the equity interests is approximately $3.2
million in cash and unregistered Class A ordinary shares.
Additionally, the Company will issue $1.11
million worth of its unregistered Class A ordinary shares to
Caravan. Furthermore, the Company will issue $3.6 million worth of its unregistered Class A
ordinary shares and $2.0 million
worth of restricted stock units to a special purpose vehicle
("SPV") controlled by Mike Teh Wang,
who represents BlueLine management. Finally, the Company will make
a payment of $1.63 million in cash
and unregistered Class A ordinary shares to the financial advisor
for this Acquistion at the closing.
Based in Vancouver, BlueLine is
a video game developer that builds engaging interactive gaming
experiences powered by world-class celebrity
talent. BlueLine's portfolio of games includes a previously
released match-3 mobile game, Apple Arcade's first trivia game, and
other strategic projects in development.
Before joining BlueLine, its team had amassed extensive
experience in the gaming industry. Their track record includes
participating in the development of multiple AAA titles, such as
numerous Need For Speed and EA Sports games at Electronic Arts as
well as top mobile titles such as the Simpsons: Tapped Out at
Electronic Arts and Disney Magic Kingdom at Gameloft. Additionally,
their past expertise extends to helping engineer backend systems
used by some of the biggest games in the industry such as EA Sports
titles at Electronics Arts.
Under the terms of the LOI, BlueLine will have a right of first
offer for any talent-related game development projects from Caravan
for five years following the closing of the acquisition. During
this period, BlueLine can decide to take on any potential
gaming-related collaboration with talent which would allow BlueLine
to execute its vision of delivering unforgettable, interactive
chart-topping experiences that connect fans with their favorite
celebrities.
The BlueLine team intends to leverage its experience in
Artificial Intelligence (AI) in games and incorporate advancements
in content generation to create ever expanding experiences.
Following the acquisition, BlueLine will focus on the development
of the Hollywood Sunshine project. This new game project, is
expected to be a unique social gaming platform that features
multiple celebrities and is driven by AI-generated content (AIGC).
The Hollywood Sunshine project will be an engaging story-based
role-playing game (RPG) set in an open world, available on both PC
and mobile platforms. BlueLine aims to captivate users with
real-time, instantaneous player-specific content generation,
offering many hours of narrative-driven gameplay. Additonally,
Caravan has agreed to bring at least three relevant star talents to
participate in the game, assuming the acquisition is successfully
completed.
Xuezhu Wang, CEO and the Chairman
of the Board of the Company, commented, "Completing this
acquisition as envisioned would signify the beginning of an
exciting new chapter for Paranovus Entertainment Technology Ltd. It
will position us favorably as an AI-driven gaming and entertainment
enterprise. The extensive expertise of BlueLine's seasoned team and
their long-standing relationships with Caravan and CAA will bring
tremendenous value to our Company. Furthermore, the potential
synergies between BlueLine and 2Lab3, both sharing a similar focus
on AI, will further contribute to our future growth."
"Partnering with a company that supports and shares our vision
and values presents a remarkable opportunity," stated Mike Teh Wang, CEO of BlueLine. "Our talented
team is thrilled to join forces with PAVS after the close of the
acqusition, leveraging our AI-powered technology and unique
celebrity resources to develop and deliver an exclusive social
gaming platform highlighting various celebrities."
If successfully finalized, the acquisition of BlueLine will be
the latest milestone for the Company, further demonstrating its new
strategic focus on the burgeoning field of AI-powered
pan-entertainment. In March 2023,
PAVS acquired 2Lab3, a Los
Angeles-based firm that initially focused on Web3 but has
recently shifted its focus towards the development of AI-powered
applications, marking the Company's first step into this emerging
technology field.
###
About Paranovus Entertainment Technology Ltd.
Headquartered in Nanping, China, Paranovus Entertainment Technology Ltd.
(fka Happiness Development Group Limited) is currently planning a
strategic transition. As part of this transition, the Company will
suspend its loss-incurring e-commerce and internet information and
advertising businesses in September. Instead, the Company intends
to shift its focus to the AI-powered entertainment industry by
entering into a non-binding Letter of Intent (LOI) with
BlueLine.
Following the suspension of these businesses and the disposal of
its nutraceutical and dietary supplements business in August 2023, the Company's only remaining
operating business in China will
be the automobile sales business.
For more information, visit http://www.pavs.ai/ .
BlueLine Studios Inc.
Headquartered in Vancouver,
Canada, BlueLine Studios Inc. is a gaming studio that
specializes in creating interactive entertainment in collaboration
with world-class celebrities. Being backed by Caravan enables
BlueLine access to star talents to deliver chart-topping
interactive experiences for users.
For more information, visit https://www.BlueLinestudios.co/.
Forward-Looking Statements
This press release contains forward-looking statements as
defined by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements that are other than
statements of historical facts. When the Company uses words such as
"may, "will, "intend," "should," "believe," "expect," "anticipate,"
"project," "estimate" or similar expressions that do not relate
solely to historical matters, it is making forward-looking
statements. Forward-looking statements are not guarantees of future
performance and involve risks and uncertainties that may cause the
actual results to differ materially from the Company's expectations
discussed in the forward-looking statements. These statements are
subject to uncertainties and risks including, but not limited to,
the following: the Company's goals and strategies; the Company's
future business development; product and service demand and
acceptance; changes in technology; economic conditions; reputation
and brand; the impact of competition and pricing; government
regulations; fluctuations in general economic and business
conditions in China and
North America, and assumptions
underlying or related to any of the foregoing and other risks
contained in reports filed by the Company with the Securities and
Exchange Commission. For these reasons, among others, investors are
cautioned not to place undue reliance upon any forward-looking
statements in this press release. Additional factors are discussed
in the Company's filings with the U.S. Securities and Exchange
Commission, which are available for review at www.sec.gov. The
Company undertakes no obligation to publicly revise these
forward-looking statements to reflect events or circumstances that
arise after the date hereof.
Media Contact:
Michael
Chen
Paranovus
929.288.7418
michael@pavs.ai
Investor Relations Contact:
Jackson Lin
Lambert
646.717.4593
jlin@lambert.com
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SOURCE Paranovus Entertainment Technology Ltd