Paranovus signs $15 to $20 million Jabanero acquisition

• Paranovus Entertainment Technology (NASDAQ:PAVS) signed a non-binding letter of intent to acquire the holding company of Jabanero for between $15 million and $20 million in cash.
• Following the acquisition announcement, the share price traded lower at $0.52.
• The company stated that acquiring consumer brands represents an opportunity to scale its digital commerce operations and build long-term value.

Paranovus Entertainment Technology (NASDAQ:PAVS) executed a non-binding letter of intent to acquire Jabanero for a proposed all-cash purchase price of $15 million to $20 million.

The proposed transaction targets a holding company that manages a women's activewear and lifestyle brand.

"As we continue to scale our digital commerce operations, we believe acquiring consumer brands represents an attractive opportunity to create long-term value and strengthen our competitive position," said Paranovus Chief Executive Officer Xiaoyue Zhang.

The company stated that the agreement includes a 60-day exclusivity period and remains subject to definitive agreements, due diligence, and necessary approvals.

The business plans to engage an independent advisor to evaluate the consideration, and following the announcement, Paranovus's share price was down at $0.52.

The transaction aligns with the broader strategy to expand the company's digital commerce footprint and consumer product operations.

The company stated it will disclose required information regarding the transaction's progress and final purchase price through future regulatory filings.