Color Star Technology Co., Ltd. Enters into Share Purchase Agreement with HNCCN to Jointly Create World’s Top 7D Internet Cafe Experience
Color Star Technology Co., Ltd. (NASDAQ: CSCW), an entertainment technology company devoted to the application of technology and artificial intelligence (AI) in the entertainment industry (hereinafter referred to as “Color Star” or the “Company”), today officially announced plans to acquire more than 51% of Hainan Netgod Cyber Cafe Network Co., Ltd.’s (hereinafter referred to as “HNCCN”) equity. Based in Haikou, HNCCN is Hainan’s first internet cafe brand that offers a five-star service experience. Through this acquisition, Color Star hopes to integrate high technology and interactive experiences in top international internet cafes, esports competitions, and other related services for the global market.
HNCCN specializes in internet access services, esports execution, and esports hotel operations. Over the years, HNCCN has maintained the status of being “Hainan’s most fashionable esports stadium,” focusing on attaining the corporate goal of becoming “Hainan’s benchmark esports stadium.” In 2015, HNCCN made another pioneering move that shook the industry by becoming the first to establish an esports arena. It was also the first in setting up a standard competition stage, viewing area, and live broadcast room. HNCCN equips the internet cafe with high-end professional equipment in order to provide a full range of high-quality services. Since the internet cafe’s opening, it has achieved a number of revenue records and partook in many national competitions. In 2016, HNCCN reached a strategic partnership with the renowned Edward Gaming (EDG) team, a professional esports organization, and together formed the Netgod Cyber Cafe esports team, which represented Hainan Province in the national esports event held in Shanghai by the National Sports Bureau. The team achieved excellent results.
In addition, HNCCN has built the first comprehensive, one-stop entertainment esports stadium, “The Trendy Esports Stadium.” In 2017, HNCCN, along with five other top internet cafe enterprises, jointly developed and operated a nationwide internet cafe membership platform. It conducted simulation transactions with tens of millions of internet cafe members across the country, converted offline physical stores and cross-industry members to become internet cafe members, and conducted a number of analysis and reviews to accumulate information. In 2020, after the pandemic subsided in Asia, HNCCN took the lead in establishing an esports hotel division, invested in and operated multiple esports hotels and esports guest rooms, and achieved excellent business outcomes. With multiple revenue sources, the fast-growing HNCCN is projected to bring in a profit over 20 million in fiscal year 2021.
Currently, internet cafes, esports experience arenas, and esports hotels are very popular among young people worldwide. In particular, esports competitions drew a large audience. This market presents a huge business opportunity. Color Star signed a non-binding acquisition agreement to purchase HNCCN shares, with the goal of collaborating with industry leaders to create world-renowned internet cafes, esports events, and esports hotels. At the same time, Color Star hopes to integrate high-technology in its products to bring a 7D experience to the public. Color Star hopes to utilize the full potential of its celebrity interactive platform, Color Star APP, to create top-notch esports events for online viewing and pay-on-demand audience. Color Star also hopes to invite world-class esports masters to serve as celebrity tutors for online lectures and exchanges, as well as develops a main virtual community and introduces a new mechanism for member entry. Altogether, this will bring members a unique interactive experience. With the pandemic easing, the combination of online and offline experiences will greatly attract the attention of members and fans.
Mr. Basil Wilson, CEO of Color Star, commented: “Having achieved good results in its existing business segments, HNCCN is highly regarded in its field. Acquiring HNCCN’s shares allows Color Star to own a flagship company in the internet cafe industry. Color Star looks forward to providing such an excellent company with a broader market, a focus on global consumers, and high-quality, high-standard products and services. Such a collaboration is also undoubtedly a boost to Color Star’s business and corporate profitability.”
Ooops! 2: The Game, Based on the Popular Film Franchise, Is Now Available Worldwide on Consoles
