BEIJING, May 11, 2020 /PRNewswire/ -- Color Star
Technology Co., Ltd. (Nasdaq CM: HHT) (the "Company", "we" or
"HHT"), a company engaged in the businesses of education services,
announced today it has entered into a securities purchase agreement
with certain accredited investors to purchase approximately
$1.43 million worth of its ordinary
shares in a registered direct offering and warrants to purchase
ordinary shares in a concurrent private placement.
Under the terms of the securities purchase agreement, the
Company has agreed to sell 2.6 million ordinary shares. In a
concurrent private placement, the Company has agreed to issue
unregistered warrants to purchase up to 2.6 million ordinary
shares. The warrants will be exercisable immediately upon the date
of issuance and have an exercise price of $0.55. The warrants will expire 5.5 years from
the date of issuance. The purchase price for one ordinary share and
a corresponding warrant will be $0.55. The gross proceeds to the Company from the
registered direct offering and concurrent private placement are
estimated to be approximately $1.43
million before deducting the placement agent's fees and
other estimated offering expenses. The registered direct offering
and concurrent private placement are expected to close on or about
May 13, 2020, subject to the
satisfaction of customary closing conditions.
Maxim Group LLC ("Maxim") is acting as sole placement agent in
connection with this offering.
The Company intends to use the net proceeds from this offering
to expand the education service business and for other general
corporate purposes.
The securities described above are being offered by the Company
pursuant to a shelf registration statement on Form F-3 filed with
the Securities and Exchange Commission (SEC) dated February 25, 2020, as amended on March 4, 2020 and declared effective on
March 10, 2020. A prospectus
supplement related to the offering will be, filed with the SEC and
available on the SEC's website at http://www.sec.gov. Copies of the
prospectus supplements relating to the offering may be obtained,
when available, by contacting: Maxim Group LLC, 405 Lexington
Avenue, 2nd Floor, New York,
NY 10174, by telephone: at (212) 895-3500.
This press release shall 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 such state or
jurisdiction.
About Color Star Technology Co., Ltd.
The Company is a holding company whose primary business
operations are conducted through its wholly-owned subsidiaries CACM
Group NY, Inc., Sunway Kids International Education Group
Ltd.("Sunway Kids"), Brave Millennium Limited, Chengdu Hengshanghui
Intelligent Technology Co., Ltd. and its variable interest
entities, Chengdu Hengshanghui Education Consulting Co., Ltd.
Sunway Kids engages in the early childhood education service
business, providing a well-structured system to day cares and
preschools in China, including AI
and robotic technologies, intellectual campus administration
software as a service (SaaS) system and personalized education
planning. The Company also anticipates providing
an after-school tutoring program in New York via Baytao LLC, a newly formed joint
venture and provide online learning via a platform being built by
CACM. For more information, please visit
http://www.china-acm.com.
Forward-Looking Statements
Certain statements made herein are "forward-looking statements"
within the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements may be identified by the use of words such as
"anticipate", "believe", "expect", "estimate", "plan", "outlook",
and "project" and other similar expressions that predict or
indicate future events or trends or that are not statements of
historical matters. Such forward-looking statements include timing
of the proposed transaction; the business plans, objectives,
expectations and intentions of the parties once the transaction is
complete, and HHT's estimated and future results of operations,
business strategies, competitive position, industry environment and
potential growth opportunities. These forward-looking statements
reflect the current analysis of existing information and are
subject to various risks and uncertainties. As a result, caution
must be exercised in relying on forward-looking statements. Due to
known and unknown risks, our actual results may differ materially
from our expectations or projections. All forward-looking
statements attributable to the Company or persons acting on its
behalf are expressly qualified in their entirety by these factors.
Other than as required under the securities laws, the Company does
not assume a duty to update these forward-looking statements.
The following factors, among others, could cause actual results
to differ materially from those described in these forward-looking
statements: there is uncertainty about the spread of the COVID-19
virus and the impact it will have on HHT's operations, the demand
for the HHT's products and services, global supply chains and
economic activity in general. These and other risks and
uncertainties are detailed in the other public filings with the
Securities and Exchange Commission (the "SEC") by HHT.
Additional information concerning these and other factors that
may impact our expectations and projections will be found in our
periodic filings with the SEC, including our Annual Report on Form
20-F for the fiscal year ended June 30, 2019. HHT's SEC
filings are available publicly on the SEC's website
at www.sec.gov. HHT disclaims any obligation to update the
forward-looking statements, whether as a result of new information,
future events or otherwise.
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SOURCE Color Star Technology Co., Ltd.