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Paranovus (PAVS) closes $10M share and pre-funded warrant sale

Filing Impact
(Neutral)
Filing Sentiment
(Neutral)
Form Type
6-K

Rhea-AI Filing Summary

Paranovus Entertainment Technology Limited completed a $10 million registered direct offering of equity securities. The company sold 9,300,000 Class A ordinary shares at $0.20 per share and pre-funded warrants to purchase 40,700,000 Class A ordinary shares at $0.1999 per warrant. The pre-funded warrants are immediately exercisable at $0.0001 per share until fully exercised.

The deal was conducted under Paranovus’s effective Form F-3 shelf registration. The company agreed not to issue additional equity or file new registration statements for 45 days after closing and to avoid variable rate transactions for six months, subject to exceptions. Directors, officers, and major shareholders entered 45-day lock-up agreements. A.G.P./Alliance Global Partners acted as exclusive financial advisor, earning a 7% cash fee and up to $50,000 in expense reimbursement. Paranovus plans to use net proceeds for working capital and general corporate purposes.

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Insights

Paranovus raises $10M equity with short-term issuance limits.

Paranovus Entertainment Technology Limited raised $10 million through a registered direct offering of shares and pre-funded warrants. This provides additional liquidity for working capital and general corporate purposes under an already effective Form F-3 shelf registration.

The structure combines 9,300,000 Class A ordinary shares at $0.20 with 40,700,000 pre-funded warrants priced at $0.1999 and exercisable at $0.0001 per share. This design effectively approximates common stock economics while staging issuance through warrant exercises.

Paranovus accepted several constraints: a 45-day standstill on new equity issuance or new registration statements and a six-month prohibition on variable rate transactions, each with exceptions. Directors, officers, and >10% holders also agreed to 45-day lock-ups. These terms are typical for this type of financing and aim to stabilize the trading environment around the transaction.

Gross proceeds $10 million Registered direct offering gross proceeds to company
Shares sold 9,300,000 Class A ordinary shares Sold at $0.20 per share in offering
Pre-funded warrants sold 40,700,000 pre-funded warrants Priced at $0.1999 per warrant
Share price $0.20 per share Purchase price for Class A ordinary shares
Warrant purchase price $0.1999 per warrant Purchase price for pre-funded warrants
Warrant exercise price $0.0001 per share Exercise price for pre-funded warrants
Advisor fee 7% of gross proceeds Cash fee to A.G.P./Alliance Global Partners
Expense reimbursement cap $50,000 Cap on legal and out-of-pocket expenses to A.G.P.
registered direct offering financial
"Closing of $10 Million Registered Direct Offering"
A registered direct offering is a way for a company to sell new shares of its stock directly to select investors with regulatory approval. This method allows the company to raise funds quickly and efficiently without needing a public auction, similar to offering exclusive access to a limited number of buyers. For investors, it often provides an opportunity to purchase shares at a favorable price, while giving the company immediate access to capital.
Pre-Funded Warrants financial
"and pre-funded warrants (the “Pre-Funded Warrants”) to purchase 40,700,000"
Pre-funded warrants are financial instruments that give investors the right to purchase a company's stock at a set price, but with most or all of the purchase price paid upfront. They function like a coupon or gift card for stock, allowing investors to buy shares later at a fixed price, which can be beneficial if they want to avoid future price increases. This makes them important for investors seeking flexibility and certainty in their investment plans.
Variable Rate Transaction financial
"involving a Variable Rate Transaction (as defined in the Securities Purchase Agreement)"
lock-up agreements financial
"entered into certain lock-up agreements (the “Lock-Up Agreements”)"
A lock-up agreement is a contract that prevents company insiders—founders, employees, and early investors—from selling their shares for a set period after a public stock offering. It matters to investors because it keeps a large block of shares off the market temporarily; when the lock-up ends, those holders can sell and this increased supply can cause the stock price to fall, similar to a timed release that suddenly opens a valve.
Form F-3 regulatory
"the Company’s registration statement on Form F-3 (File No. 333-291788)"
Form F-3 is a U.S. securities filing that lets eligible foreign companies pre-register and then quickly sell shares or other securities to raise money, because they already meet ongoing reporting and size tests. For investors it signals that the company is up-to-date with regulatory disclosure and has an efficient way to issue new securities — similar to a pre-approved credit line — which can mean faster capital raises but also potential dilution of existing holdings.
forward-looking statements regulatory
"Certain statements in this current report on Form 6-K are forward-looking statements."
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
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Learn about SEC filing dates

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of June 2026

 

PARANOVUS ENTERTAINMENT TECHNOLOGY LIMITED

(Exact name of registrant as specified in its charter)

 

250 Park Avenue

7th Floor

New York, NY 10177

(Address of Principal Executive Office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F ☒     Form 40-F ☐

 

 

 

 

Closing of $10 Million Registered Direct Offering

 

On June 15, 2026, Paranovus Entertainment Technology Limited (the “Company”) entered into a certain securities purchase agreement (the “Securities Purchase Agreement”) with certain investors for the purchase and sale of an aggregate of 9,300,000 of the Company’s Class A ordinary shares, par value $0.000012 each (the “Class A Ordinary Shares”) at a per share purchase price of $0.20, and pre-funded warrants (the “Pre-Funded Warrants”) to purchase 40,700,000 Class A Ordinary Share, at a per Pre-Funded Warrant purchase price of $0.1999 (the “Offering”). The gross proceeds from this Offering to the Company were approximately $10 million, before deducting financial advisor fees and other estimated expenses payable by the Company. The Offering closed on June 16, 2026 (the “Closing Date”).

 

The Pre-Funded Warrants are immediately exercisable at an exercise price of $0.0001 per share, and may be exercised at any time until all of the Pre-Funded Warrants are exercised in full.

 

The securities in the Offering are being offered pursuant to the Securities Purchase Agreement and the Company’s registration statement on Form F-3 (File No. 333-291788), which was initially filed with the U.S. Securities and Exchange Commission (the “SEC”) on November 25, 2025 and was declared effective by the SEC on December 3, 2025.

 

Pursuant to the Securities Purchase Agreement, the Company has agreed not to (i) issue or enter into an agreement to issue any Class A Ordinary Shares or any securities of the Company or the subsidiaries of the Company which would entitle the holder thereof to acquire at any time Class A Ordinary Shares (the “Class A Ordinary Share Equivalents”), or (ii) file any registration statement or amendment or supplement thereto, subject to certain exceptions, for a period of beginning on the date of the Securities Purchase Agreement and ending on 45 days following the Closing Date. In addition, the Company has agreed that it will not conduct any sales of Class A Ordinary Shares or Class A Ordinary Share Equivalent involving a Variable Rate Transaction (as defined in the Securities Purchase Agreement) for a period beginning on the date of the Securities Purchase Agreement and ending on the six (6) month anniversary of the Closing Date, subject to certain exceptions.

 

In connection with the offering, the Company entered into a financial advisory agreement (the “Financial Advisory Agreement”) with A.G.P./Alliance Global Partners (“A.G.P.”), pursuant to which A.G.P. acted as exclusive financial advisor for this offering and would receive at the closing of the offering a cash fee equal to 7% of the gross proceeds, and reimbursement for legal fees and other out-of-pocket fees, costs and expenses in the amount of up to $50,000.

 

In addition, on June 15, 2026, each of the directors and officers of the Company, as well as shareholders who beneficially own more than 10% of the issued and outstanding Class A Ordinary Shares and Class B ordinary shares, par value $0.000012 each (the “Class B Ordinary Shares”, together with Class A Ordinary Shares, the “Ordinary Shares”), entered into certain lock-up agreements (the “Lock-Up Agreements”), pursuant to which each of them has agreed, among other things, not to sell or dispose of any Ordinary Shares which are or will be beneficially owned by them for forty-five (45) days following the Closing Date.

 

The Company intends to use the net proceeds from the Offering for working capital and general corporate purposes. However, the management of the Company will have discretion in allocating the net proceeds in accordance with the above priorities and purposes, depending on general operating costs and expenditures and the changing needs of the Company’s business.

 

Copies of the (i) form of Pre-Funded Warrant, (ii) form of Securities Purchase Agreement, (iii) Financial Advisory Agreement, and (vi) form lock-up agreement are attached hereto as Exhibits 4.1, 10.1, 10.2, and 10.3, respectively, and are incorporated by reference herein. The foregoing summaries of the terms of each agreement mentioned above are subject to, and qualified in their entirety by, such documents.

 

This report does not constitute an offer to sell, or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction. 

 

 
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Forward-Looking Statements

 

Certain statements in this current report on Form 6-K are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and in its other filings with the SEC.

 

EXHIBIT INDEX

 

Number

 

Description of Exhibit

 

 

 

4.1

 

The Form of Pre-Funded Warrant

5.1

 

Legal Opinion of Campbells LLP

10.1

 

The Form of Securities Purchase Agreement

10.2

 

The Financial Advisory Agreement, dated June 15, 2026

10.3

 

The Form of Lock-Up Agreement

 

 
3

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

Paranovus Entertainment Technology Limited

 

 

 

 

 

Date: June 16, 2026

By:

/s/ Xiaoyue Zhang

 

 

Name: 

Xiaoyue Zhang

 

 

Title:

Chief Executive Officer

 

 

 
4

 

FAQ

What did Paranovus Entertainment Technology Limited (PAVS) announce in this 6-K?

Paranovus completed a registered direct offering raising about $10 million. It sold Class A ordinary shares and pre-funded warrants to institutional investors, providing additional capital for working capital and general corporate purposes under its effective Form F-3 shelf.

How many shares and warrants did Paranovus (PAVS) sell in the offering?

Paranovus sold 9,300,000 Class A ordinary shares at $0.20 each and pre-funded warrants to purchase 40,700,000 Class A ordinary shares at $0.1999 per warrant, with each warrant exercisable at $0.0001 per share.

What fees will A.G.P./Alliance Global Partners receive from the Paranovus (PAVS) deal?

A.G.P./Alliance Global Partners will receive a cash fee equal to 7% of the offering’s gross proceeds. Paranovus will also reimburse up to $50,000 for A.G.P.’s legal and other out-of-pocket expenses tied to this transaction.

What lock-up and issuance restrictions apply after the Paranovus (PAVS) offering?

Paranovus agreed not to issue additional equity or file new registration statements for 45 days after closing, subject to exceptions. It also agreed not to conduct variable rate transactions for six months. Key insiders and >10% holders signed 45-day lock-up agreements.

How does Paranovus (PAVS) plan to use the $10 million raised?

Paranovus intends to use the net proceeds primarily for working capital and general corporate purposes. Management retains discretion to allocate funds among operating costs and business needs within these stated priorities as conditions evolve.

When did the Paranovus (PAVS) registered direct offering close?

The offering closed on June 16, 2026, following execution of the securities purchase agreement on June 15, 2026. At closing, the company received the gross proceeds and paid the agreed advisor fees and expenses related to the transaction.

Filing Exhibits & Attachments

5 documents