Blue Hat Announced that the Company Signed a Memorandum of Understanding to Acquire 100% Equity of Shengruihao Technology

Rhea-AI Summary

Xiamen, China, Aug. 26, 2022 – Blue Hat Interactive Entertainment Technology (NASDAQ: BHAT) announced an agreement to acquire 100% of Xiamen Shengruihao Technology Co., Ltd., a firm specializing in product supply chain and integrated enterprise services. This acquisition, currently undergoing due diligence, is projected to add USD 45-70 million in annual revenue. CEO Chen Xiaodong highlighted that Shengruihao’s expertise could significantly enhance Blue Hat's profitability and market presence.

Positive

• Acquisition of Shengruihao expected to generate annual revenue of USD 45-70 million.
• Strengthened profitability and market competitiveness post-acquisition.

Negative

• None.

XIAMEN, China, Aug. 26, 2022 (GLOBE NEWSWIRE) -- Blue Hat Interactive Entertainment Technology ("Blue Hat" or "the Company") (NASDAQ: BHAT) announced that Xiamen Duwei Consulting Management Co., Ltd, a wholly owned subsidiary of the Company, signed a memorandum of understanding with its shareholder of Xiamen Shengruihao Technology Co., Ltd. (“Shengruihao”) to acquire 100% of the equity interests of Shengruihao, a company specialized in product supply chain services and integrated enterprise services.

Management Commentary
Mr. Chen Xiaodong, CEO of Blue Hat, said: “I am glad to announce that the Company has started the process to acquire 100% of the equity of Shengruihao through cash transaction. Right now the transaction is undergoing the due diligence review. It is expected to close very soon. the annual turnover of Shengruihao is USD 45 million. After the successful acquisition of Shengruihao, we estimate that it will create a revenue of USD 45-70 million each year for the Company in the future. I believe that Shengruihao's outstanding achievements in commodity supply chain services can become a catalyst for the Company’s future growth. With the acquisition of Shengruihao, the Company will have stronger profitability and sustainable power to actively explore the market, establish the corporate image and improve the service quality. We will continue looking for acquisition opportunities to keep carrying out our expansion strategy and enhance our competitiveness in the market.”

About Blue Hat
Blue Hat is a leading communication services and IDC business provider and a producer, developer and operator of AR interactive entertainment games, toys and educational materials in China. Distinguished by its own proprietary technology, Blue Hat aims to create an engaging, interactive and immersive community for its users. For more information, please visit the Company’s investor relations website at http://ir.bluehatgroup.com. The Company routinely provides important information on its website.

Forward-Looking Statements 
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this release and matters set in the Company's SEC filings, including its Annual Report on Form 20-F. These risks and uncertainties could cause the Company's actual results to differ materially from those indicated in the forward-looking statements.

Contacts:
Blue Hat Interactive Entertainment Technology
Phone: +86 (592) 228-0010
Email: ir@bluehatgroup.net

FAQ

What is the purpose of Blue Hat's acquisition of Shengruihao?

The acquisition aims to strengthen Blue Hat's profitability and enhance its market competitiveness.

What is the projected revenue impact of the acquisition for Blue Hat?

The acquisition is expected to generate an additional USD 45-70 million in annual revenue.

When is the acquisition of Shengruihao expected to close?

The acquisition is currently undergoing due diligence and is expected to close soon.

How does Shengruihao's business benefit Blue Hat?

Shengruihao's expertise in product supply chain services can be a catalyst for Blue Hat's future growth.