MultiMetaVerse Signs Term Sheet to Acquire Innovative E-Commerce Service Provider Bowong AI

Rhea-AI Summary

MultiMetaVerse Holdings (MMV), a leading animation and entertainment company in China, has signed a non-binding term sheet to acquire Bowong Technology (Shenzhen) Co., (Bowong AI). The acquisition involves issuing MMV's Class A ordinary shares to Bowong AI shareholders as consideration, with a lock-up period of one year. MMV has a 90-day exclusive period to finalize the agreement. Bowong AI, founded in 2022, specializes in AI-driven e-commerce solutions, focusing on marketing content creation and distribution. Bowong AI recently completed its Series A funding, aiming to enhance its AI models, expand into Asia and North America, and recruit top talent. MMV's CEO, Yiran Xu, highlighted Bowong AI's expertise in e-commerce and its potential synergy with MMV's animation and merchandise business.

Positive

• MMV to acquire 100% of Bowong AI, potentially enhancing its technology portfolio.
• Bowong AI specializes in AI-driven e-commerce solutions, offering innovative content creation and distribution.
• The acquisition involves issuing Class A ordinary shares, indicating confidence in the company’s equity.
• Bowong AI has completed its Series A funding, securing several million dollars to enhance its AI models and expand geographically.
• Potential synergies between Bowong AI’s AI technology and MMV’s animation and gaming businesses could improve content quality and reduce costs.
• The AI-powered e-commerce business model is expected to boost MMV's merchandise business.

Negative

• The term sheet is non-binding, and there is no guarantee the acquisition will be finalized.
• The issuance of Class A ordinary shares as consideration may lead to dilution of MMV's existing shareholders.
• The Consideration Shares are subject to a one-year lock-up period, potentially affecting liquidity.
• Financial details of the Proposed Transaction are not disclosed, leading to uncertainty regarding the acquisition's impact on MMV's financial health.

News Market Reaction

+125.12%

1 alert

+125.12% News Effect

On the day this news was published, MMV gained 125.12%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

SHANGHAI, May 20, 2024 /PRNewswire/ -- MultiMetaVerse Holdings Limited ("MMV" or the "Company"), a leading animation and entertainment company for young consumers in China, announced today that it has entered into a non-binding term sheet (the "Term Sheet") for the acquisition (the "Proposed Transaction") of 100% of Bowong Technology (Shenzhen) Co., Ltd. and its subsidiaries (collectively "Bowong AI") by the issuance of the Company's Class A ordinary shares to the shareholders of Bowong AI as consideration (the "Consideration Shares"), the amount of which will be determined  based on further due diligence and negotiation. The Consideration Shares shall be subject to a lock-up period of one year. MMV has an exclusive period of 90-day to negotiate a definitive agreement for the Proposed Transaction.

Founded in 2022, Bowong AI is an artificial intelligence ("AI") company specializing in e-commerce solutions. Bowong AI focuses on providing innovative solutions for marketing content creation and distribution outreach in the e-commerce industry using AI technology. The core advantage of Bowong AI lies in its self-developed AI models specifically tailored for e-commerce content creation, overcoming limitations of time and budget associated with human resources.

According to Bowong's management team, its AI's AI-powered content distribution algorithm allows for the rapid production and dissemination of personalized marketing content across multiple platforms, enabling vendors to quickly expand their market reach and precisely target buyers. Combined with its AI-powered content distribution algorithm, Bowong AI is able to produce and distribute abundant and personalized marketing contents in different forms for the goods across all platforms in a very short time. Recently, Bowong AI has completed its Series A funding of several million dollars. The proceeds will be used to further develop its models and technologies in the e-commerce field, expand its market into Asia and North America, and recruit additional top talents.

Yiran Xu, Chairman and CEO of MMV, commented on the Proposed Transaction, "We are deeply impressed by Bowong AI's expertise and technology. The team's experience in the e-commerce business enables Bowong AI to understand the pain points of merchants, and to offer an effective, high-quality and efficient solution. We believe that e-commerce related AI will be one of the earliest niche markets resulting in commercial success in the AI revolution. Besides, Bowong AI's expertise in image and video generative AI will be a great synergy for MMV's animation and gaming business and may further improve quality of the contents and reduce production costs. Their AI-powered e-commerce business model will also boost our merchandise business."

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.

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

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements 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.

View original content:https://www.prnewswire.com/news-releases/multimetaverse-signs-term-sheet-to-acquire-innovative-e-commerce-service-provider-bowong-ai-302150118.html

SOURCE MultiMetaVerse Holdings Limited

FAQ

What is MultiMetaVerse's recent acquisition announcement?

MultiMetaVerse signed a non-binding term sheet to acquire Bowong AI, an AI-driven e-commerce service provider.

When was the acquisition of Bowong AI by MMV announced?

The acquisition was announced on May 20, 2024.

What will MMV use to acquire Bowong AI?

MMV will issue Class A ordinary shares to Bowong AI shareholders as consideration.

What is the lock-up period for the Consideration Shares in MMV's acquisition of Bowong AI?

The Consideration Shares will be subject to a one-year lock-up period.

What specialization does Bowong AI have?

Bowong AI specializes in AI-driven e-commerce solutions, particularly in marketing content creation and distribution.

What funding round did Bowong AI recently complete?

Bowong AI recently completed its Series A funding, securing several million dollars.

What are the potential benefits of the MMV and Bowong AI merger?

Potential benefits include enhanced content quality and reduced costs for MMV's animation and gaming businesses, and a boost to MMV's merchandise business.

What is the nature of the term sheet signed between MMV and Bowong AI?

The term sheet is non-binding, providing a 90-day exclusive period to negotiate a definitive agreement.