Paranovus Entertainment Technology Limited (NASDAQ: PAVS) announced it has entered into a definitive agreement with a single institutional investor for a registered direct offering of 14,285,715 Class A ordinary shares at $0.35 per share, according to a company statement.

The offering is expected to generate gross proceeds of approximately $5 million before deducting placement agent commissions and other offering expenses. The transaction is expected to close on or about March 25, 2026, subject to customary closing conditions.

The company stated it intends to use the net proceeds for working capital and general corporate purposes. A.G.P./Alliance Global Partners is acting as the financial advisor for the offering.

The shares are being offered pursuant to a prospectus supplement filed with the Securities and Exchange Commission in connection with the company's shelf registration statement on Form F-3, which was declared effective by the SEC on December 3, 2025.

The offering includes a concurrent private placement of warrants to the institutional investor, which will be made in reliance on an exemption from registration under Section 4(a)(2) of the Securities Act of 1933.

Paranovus focuses on e-commerce and TikTok-related e-commerce solutions through its subsidiaries. In March 2025, the company completed the acquisition of controlling equity interests in Bomie Wookoo Inc., a New York company that offers e-commerce solutions. The company has exited its legacy businesses, including e-commerce, internet information, and advertising businesses in September 2023, and ceased its automobile sales business in July 2024.