Color Star Technology (CSCW) Announces Private Placement with a Major Shareholder
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Color Star Technology Co., Ltd. (NASDAQ: CSCW) (hereinafter referred to as "Color Star" or the "Company"), an entertainment technology company with a global network that focuses on the application of technology and artificial intelligence (AI) in the entertainment industry, today announced a private placement of 16 million shares at $1 per share, valued at $16 million, to its largest shareholder, Hou Sing International Business, Ltd. (hereinafter referred to as "HSIB").
As an entertainment technology company, Color Star will continue to increase investment in developing projects such as its metaverse and non-fungible tokens (NFT). In this regard, the Company's global celebrity interactive platform, Color Star app, will be upgraded to become a new "entertainment metaverse" platform in January, 2022. Users will be able to "settle" into this metaverse and become residents of the Color Star world, where they can purchase land, build houses, and design their own homes, cars, and even clothing. All these design products will be in NFT form and tradable. The launch of Color Star's entertainment metaverse will bring a brand-new experience to its global users.
A spokesperson for HSIB commented: "We have always been very optimistic about Color Star's business outlook. Since the pandemic, as global entertainment and economies declined, Color Star was nevertheless able to spot the unique opportunity amid the crisis. The Company's 2021 fiscal year financial results show that the company is still growing rapidly. We believe Color Star will show even better performance in the future, so we are willing to increase our holdings via a private placement at a 100% premium to the current share price. We will continue to support and closely follow the Company's growth and development."
The proceeds from this placement will be used to further develop metaverse products as Color Star strives to bring better and improved products and experiences to users worldwide.
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