MultiMetaVerse Holdings Limited Announces Signing of Definitive Agreement to Acquire Bowong Technology

Rhea-AI Summary

MultiMetaVerse Holdings (NASDAQ: MMV) has signed a definitive share exchange agreement to acquire Bowong AI , which is expected to indirectly hold 100% equity interests in Bowong Technology. The deal involves MMV issuing 37,000,000 Class A ordinary shares to Bowong's shareholders. Bowong Technology specializes in AI e-commerce solutions, providing comprehensive AI technologies and services for sellers on both social and traditional e-commerce platforms. Upon completion, Bowong Cayman will become a wholly-owned subsidiary of MMV. The transaction remains subject to corporate approvals and customary closing conditions.

Positive

• Acquisition expands MMV's technology portfolio into AI e-commerce sector
• Strategic vertical integration into AI technologies and services
• Full ownership (100%) of Bowong Technology's operations post-acquisition

Negative

• Significant shareholder dilution due to issuance of 37,000,000 Class A ordinary shares
• Transaction completion uncertainty due to pending approvals and conditions
• No disclosed immediate financial benefits or synergy values

Insights

Financial Analyst

This acquisition represents a strategic pivot for MMV into the AI e-commerce sector. The deal structure involves issuing 37 million Class A ordinary shares to acquire Bowong Technology, which specializes in AI solutions for e-commerce sellers. For a company with a market cap of about $15 million, this is a significant transaction that could substantially dilute existing shareholders.

Bowong's focus on both emerging social e-commerce and traditional platforms positions MMV to capitalize on China's evolving digital commerce landscape. However, several risk factors exist: the deal is still subject to approvals, the integration of AI technology with MMV's animation business model remains unclear and the true value proposition of Bowong's AI capabilities needs validation. The lack of financial details about Bowong Technology makes it difficult to assess the fair value of this share-based transaction.

SHANGHAI, Dec. 02, 2024 (GLOBE NEWSWIRE) -- MultiMetaVerse Holdings Limited (NASDAQ: MMV) (“MMV” or the “Company”), a leading animation and entertainment company for young consumers in China, today announced that it has signed a definitive share exchange agreement (the “Share Exchange Agreement”) with the shareholders (the “Transferors”) of Bowong AI Limited (“Bowong Cayman”), which, after a series of restructuring transactions, is expected to indirectly hold 100% equity interests in Bowong Technology (Shenzhen) Co., Ltd. (“Bowong Technology”). Bowong Technology is a company equipped with cutting-edge technologies that is vertically integrated in the AI e-commerce sector. It focuses on delivering comprehensive AI technologies and services for sellers on both emerging social e-commerce platforms and traditional e-commerce platforms.

The Share Exchange Agreement supersedes a non-binding term sheet between the Company and Bowong Technology, which was announced on October 2, 2024. Pursuant to the Share Exchange Agreement, each of the Transferors agrees to sell and transfer to the Company all of the shares of Bowong Cayman he beneficially owns, and in exchange and as consideration therefor, the Company agrees to issue and allot an aggregate of 37,000,000 Class A ordinary shares to such Transferors. Upon completion of the foregoing, Bowong Cayman will become a wholly-owned subsidiary of the Company, and Bowong Technology and all the subsidiaries and affiliates controlled by it will become consolidated subsidiaries and affiliates of the Company.

The transaction is subject to the completion of the requisite corporate and other approvals and customary closing conditions. There can be no assurance that the transaction will be consummated in a timely manner, or at all.

About MultiMetaVerse Holdings Limited

MultiMetaVerse Holdings Limited (NASDAQ: MMV) is an animation and entertainment company dedicated to providing a high-quality, immersive entertainment experience through original, user-generated, and professional user-generated content. MMV commenced animation production in 2015 under its signature Aotu World brand, which has attracted a broad following with its inspiring storyline and unique graphic style, particularly among younger audiences in China. By leveraging the company’s established user base, MMV has built a diverse product portfolio, including animated content, comic books, short videos, collectibles, stationery, consumer products, and mobile games across the Aotu World brand. It has also developed and augmented new brands, stories, and characters, such as Neko Album.

Safe Harbor Statements

This press release contains forward-looking statements which generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Without limiting the generality of the foregoing, the forward-looking statements in this press release include descriptions of the Company’s future commercial operations. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, such as the Company’s inability to implement its business plans, identify and realize additional opportunities, or meet or exceed its financial projections and changes in the regulatory or competitive environment in which the Company operates. You should carefully consider the foregoing factors and the other risks and uncertainties described in the Company’s Annual Report on Form 20-F and other documents filed or to be filed by the Company with the SEC from time to time, which could cause actual events and results to differ materially from those contained in the forward-looking statements. All information provided herein is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.

For more information, please visit https://www.multi-metaverse.com/.

For investor and media inquiries, please contact:

MultiMetaVerse Holdings Limited
Investor Relations
E-mail: ir@multi-metaverse.com

FAQ

How many shares will MMV issue to acquire Bowong Technology?

MMV will issue 37,000,000 Class A ordinary shares to Bowong's shareholders as consideration for the acquisition.

What is Bowong Technology's main business focus?

Bowong Technology specializes in AI e-commerce solutions, providing AI technologies and services for sellers on both social and traditional e-commerce platforms.

When did MMV announce the definitive agreement to acquire Bowong Technology?

MMV announced the definitive share exchange agreement on December 2, 2024.

What percentage of Bowong Technology will MMV own after the acquisition?

Upon completion, MMV will indirectly own 100% equity interests in Bowong Technology.