CONNEXA HAS CLOSED THE ACQUISITION OF A FURTHER 50% OF YYEM AND CONFIRMS THAT TRADING OF THE POST-ACQUISITION YYAI WILL COMMENCE FRIDAY, NOVEMBER 22, 2024

Rhea-AI Summary

Connexa Sports Technologies (Nasdaq:YYAI) has completed the acquisition of an additional 50% stake in Yuanyu Enterprise Management Co. (YYEM), increasing its total ownership to 70%. The Hong Kong-based YYEM operates in the global Love and Marriage sector. Trading of post-acquisition YYAI will begin on November 22, 2024. Following the acquisition, Connexa has undergone a change of control, appointed new officers and directors, and completed the spin-off of the Slinger Bag business. Former CEO Mike Ballardie thanked shareholders, while new board member Mr. Zhou expressed optimism about the company's future in the Love and Marriage sector.

Positive

• Increased ownership stake in YYEM from 20% to 70%
• Successfully completed strategic transition with change of control
• Received Nasdaq confirmation for continued trading

Negative

• Complete divestment of existing Slinger Bag business through spin-off
• Major business model shift introducing operational transition risks

Insights

Financial Analyst

This acquisition marks a significant strategic pivot for Connexa Sports Technologies, transforming from a sports equipment company into a player in the Love and Marriage sector. The increase to 70% ownership in YYEM represents a controlling stake, effectively making this a reverse merger situation. The spin-off of the Slinger Bag business, combined with new management and board appointments, signals a complete business transformation.

The market cap of $31.8 million suggests this is a small-cap company undergoing substantial changes. Investors should note that such fundamental business model changes often come with significant execution risks and potential volatility. The Love and Marriage sector in Asia, particularly through a Hong Kong-based entity, represents a different market dynamic that will require careful evaluation of growth potential and market opportunities.

Windsor Mills, Nov. 21, 2024 (GLOBE NEWSWIRE) -- Connexa Sports Technologies Inc. (Nasdaq:YYAI) is pleased to announce that it has closed the acquisition of a further 50% ownership stake in Yuanyu Enterprise Management Co., Limited (YYEM), a Hong Kong-based entity focused on the global Love and Marriage sector, taking its overall stake in YYEM to 70% and received Nasdaq confirmation that post-acquisition trading of YYAI will commence at the market opening tomorrow morning on November 22, 2024.

As a result of the acquisition, Connexa has now undergone a change of control, appointed new officers, new directors, and effected a spin-off of the Slinger Bag business.

“We would like to thank all of our shareholders and directors for their support in the acquisition of YYEM and we wish YYEM and Connexa’s new board every success for the future,” concluded Mike Ballardie, the former CEO of Connexa.

Mr. Zhou, Chairman of YYEM and a new member of Connexa’s Board of Directors, commented, “I thank the outgoing directors for their service to Connexa and look forward to an exciting future as we take the company forward into the Love and Marriage sector.”

About YYAI:

Connexa Sports Technologies Inc. (YYAI), via its majority-owned subsidiary, Yuanyu Enterprise Management Co., Limited, operates across the rapidly emerging Love and Marriage sector. Yuanyu Enterprise Management Co., Limited owns numerous patents, technologies and algorithms that drive its big data and matchmaking analyses, deriving its current revenues from royalties.

YYAI Contact Information:
info@yuanyuenterprise.com
www.yuanyuenterprise.com

Forward-Looking Statements

This press release contains forward-looking statements. Statements that are not historical facts, including statements about beliefs or expectations, are forward-looking statements. These statements are based on plans, estimates, expectations and projections at the time the statements are made, and readers should not place undue reliance on them. In some cases, readers can identify forward-looking statements by the use of forward-looking terms such as “may,” “will,” “should,” “expect,” “opportunity,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” or “continue,” or the negative of these terms or other comparable terms. Forward-looking statements involve inherent risks and uncertainties and readers are cautioned that a number of important factors could cause actual results to differ materially from those contained in any such forward-looking statements. Factors that could cause actual results to differ materially from those described in this press release include, among others:

• the risks associated with the company’s relatively low public float, which may result in the company’s common stock experiencing significant price volatility;
  
  
• the effects that the closed acquisition of YYEM and the closed spin-off of the Slinger Bag business may have on the Company and its current or future business and on the price of the common stock;
  
  
• uncertainties regarding the company’s focus, strategic plans and other management actions;
  
  
• the risks associated with potential litigation related to the closed acquisition of YYEM and the closed spin-off of the Slinger Bag business or related to any possible subsequent financing transactions or acquisitions or investments;
  
  
• uncertainties regarding general economic, business, competitive, legal, regulatory, tax and geopolitical conditions; and
  
  
• other factors, including those set forth in the Company’s filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended April 30, 2024 and subsequent Quarterly Report on Form 10-Q.
  
  

Forward-looking statements included in this report speak only as of the date each statement is made. Neither the company nor any person undertakes any obligation to update any of these statements in light of new information or future events, except to the extent required by applicable law.

FAQ

What percentage stake did Connexa (YYAI) acquire in YYEM in November 2024?

Connexa acquired an additional 50% stake in YYEM, bringing its total ownership to 70%.

When will YYAI resume trading after the YYEM acquisition?

Trading of post-acquisition YYAI will commence on Friday, November 22, 2024, at market opening.

What major changes occurred at Connexa (YYAI) following the YYEM acquisition?

Following the acquisition, Connexa underwent a change of control, appointed new officers and directors, and completed the spin-off of the Slinger Bag business.

What is YYEM's business focus after the acquisition by Connexa (YYAI)?

YYEM is focused on the global Love and Marriage sector.