Paranovus Entertainment signed a non-binding LOI to acquire BlueLine Studios

Paranovus Entertainment Technology announced that it has signed a non-binding Letter of Intent, LOI, to acquire 100% of BlueLine Studios, a portfolio company of Caravan Digital, a co-founder of consumer companies authentically powered by iconic artists and athletes in partnership with Creative Artists Agency. 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 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.