Color Star Announces Entry into Non-Binding LOI for the Acquisition of JingXiang (Australia)
NEW YORK, Sept. 12, 2023 /PRNewswire/ -- Color Star Technology Co., Ltd. (NASDAQ:ADD) ("Color Star" or the "Company"), an entertainment technology company with a global network that focuses on the application of technology and artificial intelligence in the entertainment industry, announced today that it has entered into a non-binding letter of intent ("LOI") for the planned acquisition of over 60% of shares of JingXiang (Australia) Pty. Ltd. ("JingXiang (Australia)").
JingXiang Group ("JingXiang", or the "Group") provides multiple new digital services that brings electronic sports ("esports") to hotels. JingXiang's three main services include providing a fully-loaded supercomputing platform, an esports software as a service ("SaaS") for hotels, as well as a central reservation system ("CRS") for these hotels. Currently, these services are individually provided by members of the JingXiang Group: JingXiang (Hangzhou) Ltd., and Hangzhou Jingqiqu Network Technology Ltd., respectively. In the future, these three services will be consolidated and become provided solely by JingXiang (Australia).
The fully-loaded supercomputing platform researched and developed by JingXiang adopts self-developed coding and decoding protocols, which allows for low-latency and high-definition remote streaming capabilities, and supports 2K resolution and 144Hz refresh rate esports gaming standards. It can also supply computing power which is capable of meeting a wide range of demands. JingXiang has purchased over 3,000 fixed assets, including 3,000 sets of cloud computer cases, 160+ servers, around 100 network switches, etc., and successfully applied for 7 patents (4 invention patents), 12 software copyright certificates, of which 3 of these certificates were appraised to be over 60 million yuan in value.
The Group also owns a diskless architecture cloud storage technology, which allows for the remote usage of hardware, operating systems, and software programs; providing the end-user with an almighty storage service.
In response to the rapidly growing market of esports hotels, JingXiang launched a CRS catering specifically to this emerging business. JingXiang's esports hotel CRS is an exclusive platform for passionate gamers as well as esports hotels. The system features merchant integration, orders and transactions, room management, marketing events, merchant settlements, data analysis, and other features and services. In addition, JingXiang has also set up an alliance of esports hotels of different brands and a hotel membership system, combining its resources used for organizing esports events and its other IP resources to create an exclusive esports ecosystem for esports enthusiasts. JingXiang's professional ability is highly recognized within the industry. As Tencent Esports' exclusive strategic partner, JingXiang entered into Tencent's esport ecosystem 'Tencent Esports GO', where it supplies its CRS.
Color Star CEO, Louis Luo, said, "We consider the development of esports hotels and its related services to be in its infancy. The amount of gaming enthusiasts around the world is in the hundreds of millions. If the proposed acquisition of JingXiang is successful, it will be a sign that the Company can participate in the esports industry with a brand new strategy. The combination of the company's celebrity network with esports events and concerts will make for a perfect union".
Guchuan Lu, CEO of JingXiang, said, "We believe that if this acquisition is successful, it will be a great deal for both companies. We are deeply involved in the development of the esports industry. We know very clearly that the future of the esports industry will be a huge market. At present, we have taken the Chinese market as a trial market because of its large demographic dividend and gamer population. Using the Chinese market as the basis, we plan to carry out our esports business in Singapore, Japan, South Korea and other Asian countries. Following the completion of the proposed acquisition, we plan to rapidly develop our esports business within the European and American markets with the help of Color Star's entertainment and sports segment, creating a new branch of business within the e-sports industry".
Completion of the transaction is subject to due diligence investigations by the relevant parties, the negotiation and execution of a definitive agreement, satisfaction of the conditions negotiated therein including the approval of the Company's Board of Directors and the satisfaction of other customary closing conditions. There can be no assurance that a definitive agreement will be entered into or that the proposed transaction will be consummated. Further, readers are cautioned that those portions of the LOI that describe the proposed transaction are non-binding.
About Color Star Technology Co., Ltd.
Color Star Technology Co., Ltd. (NASDAQ:ADD) is an entertainment and education company that provides online entertainment performances and online music education services. Its business operations are conducted through its wholly-owned subsidiaries, Color Metaverse Pte. Ltd. and CACM Group NY, Inc. The Company's online education is provided through its Color World music and entertainment education platform. More information about the Company can be found at www.colorstarinternational.com and www.colorstar.investorroom.com.
Forward-Looking Statement
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 guarantee 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, including the development of the metaverse project; product and service demand and acceptance; changes in technology; economic conditions; the growth of the educational and training services market internationally where ADD conducts its business; reputation and brand; the impact of competition and pricing; government regulations; the occurrence of any event, change or other circumstances that could give rise to the terms of the LOI not hereafter being memorialized in a definitive agreement; the outcome of any legal proceedings that have been, or will be, instituted against Color Star or other parties to the LOI following announcement of the LOI and transactions contemplated therein; the ability of Color Star to meet NASDAQ listing standards in connection with the consummation of the transaction contemplated therein; the inability to complete the transactions contemplated by the LOI due to the failure to meet certain closing conditions; risks that the proposed transaction disrupts current plans and operations and the potential difficulties in employee retention as a result of the announcement of the LOI and consummation of the transaction described therein; costs related to the proposed acquisition; changes in applicable laws or regulations; the ability of the combined company to meet its financial and strategic goals, due to, among other things, competition, the ability of the combined company to grow and manage growth profitability, maintain relationships with customers and retain its key employees; the possibility that the combined company may be adversely affected by other economic, business, and/or competitive factors; and other risks and uncertainties described herein, as well as those risks and uncertainties discussed from time to time in other reports and other public filings with the Securities and Exchange Commission by Color Star. 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 unless required by applicable laws, regulations or rules.
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SOURCE Color Star Technology Co., Ltd.