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.
View original
content:https://www.prnewswire.com/news-releases/color-star-announces-entry-into-non-binding-loi-for-the-acquisition-of-jingxiang-australia-301924499.html
SOURCE Color Star Technology Co., Ltd.