Business
Pivoting to AI-Entertainment, Paranovus Entertainment Technology Ltd Signs Letter of Intent to Acquire BlueLine Studios
Expansion into AI-powered online entertainment industry reflects strategic evolution of the business model NANPING, China, Sept. 6, 2023 /PRNewswire/ --
About this update from Paranovus Entertainment Technology Ltd.
[{"type":"text","content":" Expansion into AI-powered online entertainment industry reflects strategic evolution of the business model\nNANPING, 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\").\n\n \n \n \n \n \n \n\n \nThe 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. \nUnder 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.\nBased 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.\nBefore 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...