Color Star Technology Enters into MOU to Acquire South Korean Artist Agency and Live Entertainment Company
NEW YORK, Sept. 23, 2020 /PRNewswire/ -- Color Star Technology Co., Ltd. (Nasdaq CM: HHT) (the "Company", "we" or "HHT"), a company engaged in the businesses of providing online and offline knowledge-paid services for music and entertainment industries globally, today announced that it, through its wholly owned subsidiary, Color China Entertainment Co., Ltd., entered into a memorandum of understanding (the "MOU") on September 21, 2020 with FENT Co. Ltd. ("FENT"), a South Korean K-pop entertainment and artist agency service company, to acquire 100 percent equity interest in FENT (the "Proposed Transaction").
FENT, also known as Fascino Entertainment, is a South Korean-based live entertainment company that engages in: i) talent development and management in the music, film and fashion industries; ii) live concerts and events; iii) music and video production, distribution, and licensing; iv) public relations, media outreach and brand management. FENT also sells cosmetics (e.g., lipsticks) and fashion products through its online channels. Fanatics, a highly popular K-pop group with fans and followers in South Korea, Brazil, Argentina, Mexico, and Indonesia, is represented by FENT.
Both parties agree to negotiate in good faith with no broker, agent or other intermediary being involved, and intend to finalize a definitive agreement by the end of the year. The entry into a definitive agreement for the Proposed Transaction is subject to the satisfactory results of a due diligence process and board authorization and appropriate shareholder approval, if necessary, by HHT.
Luke Lu, Chairman and Chief Executive Officer of HHT, commented, "The Proposed Transaction to acquire FENT gives HHT a unique opportunity to leap into the live entertainment and artist agency service industry where we believe tremendous opportunities exist, and to expand our geographic footprint into the South Korea market. This comes at a time when K-pop is gaining increasing popularity internationally. We are excited about the opportunity and looking forward to working with the FENT team to finalize the transaction promptly."
About Color Star Technology
Color Star Technology Co, Ltd. (Nasdaq CM: HHT) offers online and offline knowledge-paid services for music and entertainment industries globally. Its business operations are conducted through its wholly-owned subsidiaries Color China Entertainment Ltd. and CACM Group NY, Inc. The Company's online education is provided through its Color World music and entertainment education platform. The Company also offers after-school entertainment tutoring in New York via its joint venture entity Baytao LLC. More information about the Company can be found at www.colorstarinternational.com.
This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Specifically, the Company's statements regarding the proposed acquisition of FENT are forward-looking statements. Forward-looking statements are not guarantee of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company's goals and strategies; the Company's future business development; product and service demand and acceptance; changes in technology; economic conditions; the growth of the educational and training services market in China and other countries where HHT conducts its business; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic and business conditions and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the Securities and Exchange Commission. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the U.S. Securities and Exchange Commission, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward–looking statements to reflect events or circumstances that arise after the date hereof.
For more information, please contact:
Tony Tian, CFA
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