Color Star Technology Co., Ltd. Enters into Share Purchase Agreement with HNCCN to Jointly Create World's Top 7D Internet Cafe Experience
Color Star Technology Co., Ltd. (NASDAQ: CSCW) plans to acquire over 51% of Hainan Netgod Cyber Cafe Network Co., Ltd. (HNCCN), which is known for its esports and internet cafe services in Hainan. This acquisition aims to enhance Color Star's footprint in the entertainment technology sector by integrating high technology and interactive experiences into internet cafes and esports events. HNCCN is projected to generate profits exceeding $20 million in FY 2021, indicating strong business potential. CEO Basil Wilson expressed optimism about the acquisition's potential to boost Color Star's market reach and profitability.
- Acquisition of over 51% equity in HNCCN, enhancing market presence in esports and internet cafes.
- HNCCN projected to report profits exceeding $20 million in FY 2021.
- Acquisition expected to integrate high technology in entertainment experiences.
- None.
NEW YORK, Sep. 2, 2021 /PRNewswire/ -- Color Star Technology Co., Ltd. (NASDAQ: CSCW), an entertainment technology company devoted to the application of technology and artificial intelligence (AI) in the entertainment industry (hereinafter referred to as "Color Star" or the "Company"), today officially announced plans to acquire more than
HNCCN specializes in internet access services, esports execution, and esports hotel operations. Over the years, HNCCN has maintained the status of being "Hainan's most fashionable esports stadium," focusing on attaining the corporate goal of becoming "Hainan's benchmark esports stadium." In 2015, HNCCN made another pioneering move that shook the industry by becoming the first to establish an esports arena. It was also the first in setting up a standard competition stage, viewing area, and live broadcast room. HNCCN equips the internet cafe with high-end professional equipment in order to provide a full range of high-quality services. Since the internet cafe's opening, it has achieved a number of revenue records and partook in many national competitions. In 2016, HNCCN reached a strategic partnership with the renowned Edward Gaming (EDG) team, a professional esports organization, and together formed the Netgod Cyber Cafe esports team, which represented Hainan Province in the national esports event held in Shanghai by the National Sports Bureau. The team achieved excellent results.
In addition, HNCCN has built the first comprehensive, one-stop entertainment esports stadium, "The Trendy Esports Stadium." In 2017, HNCCN, along with five other top internet cafe enterprises, jointly developed and operated a nationwide internet cafe membership platform. It conducted simulation transactions with tens of millions of internet cafe members across the country, converted offline physical stores and cross-industry members to become internet cafe members, and conducted a number of analysis and reviews to accumulate information. In 2020, after the pandemic subsided in Asia, HNCCN took the lead in establishing an esports hotel division, invested in and operated multiple esports hotels and esports guest rooms, and achieved excellent business outcomes. With multiple revenue sources, the fast-growing HNCCN is projected to bring in a profit over 20 million in fiscal year 2021.
Currently, internet cafes, esports experience arenas, and esports hotels are very popular among young people worldwide. In particular, esports competitions drew a large audience. This market presents a huge business opportunity. Color Star signed a non-binding acquisition agreement to purchase HNCCN shares, with the goal of collaborating with industry leaders to create world-renowned internet cafes, esports events, and esports hotels. At the same time, Color Star hopes to integrate high-technology in its products to bring a 7D experience to the public. Color Star hopes to utilize the full potential of its celebrity interactive platform, Color Star APP, to create top-notch esports events for online viewing and pay-on-demand audience. Color Star also hopes to invite world-class esports masters to serve as celebrity tutors for online lectures and exchanges, as well as develops a main virtual community and introduces a new mechanism for member entry. Altogether, this will bring members a unique interactive experience. With the pandemic easing, the combination of online and offline experiences will greatly attract the attention of members and fans.
Mr. Basil Wilson, CEO of Color Star, commented: "Having achieved good results in its existing business segments, HNCCN is highly regarded in its field. Acquiring HNCCN's shares allows Color Star to own a flagship company in the internet cafe industry. Color Star looks forward to providing such an excellent company with a broader market, a focus on global consumers, and high-quality, high-standard products and services. Such a collaboration is also undoubtedly a boost to Color Star's business and corporate profitability."
About Color Star Technology
Color Star Technology Co, Ltd. (Nasdaq CM: CSCW) 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 China Entertainment 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.
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; product and service demand and acceptance; changes in technology; economic conditions; the growth of the educational and training services market in China and other countries where CSCW conducts its business; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic and business conditions and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the Securities and Exchange Commission. 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.
For more information, please contact:
William Tu
Skyline Corporate Communications Group, LLC
One Rockefeller Plaza, 11th Floor
New York, NY 10020
Office: (646) 893-5835
Email: wtu@skylineccg.com
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SOURCE Color Star Technology Co., Ltd.
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