PAVS Announces Termination of the Sales Agreement for its At-the-Market Offering with AC Sunshine Securities

Rhea-AI Summary

PAVS (NASDAQ:PAVS) and AC Sunshine Securities mutually terminated their June 4, 2026 sales agreement and related at-the-market (ATM) offering, effective June 14, 2026.

No disagreements were cited, and no further Class A ordinary share sales will occur under this ATM after selling 39,248,940 shares for about $30.97 million in gross proceeds.

Positive

• Mutual termination of ATM agreement with AC Sunshine Securities, avoiding cited disputes
• ATM program raised about US$30.97 million in gross proceeds
• 39,248,940 Class A ordinary shares successfully sold under the ATM before termination

Negative

• No further capital can be raised under the terminated ATM program
• Issuance of 39,248,940 new Class A ordinary shares created shareholder dilution

News Market Reaction – PAVS

-8.70% 29.7x vol

86 alerts

-8.70% Session close to close

+167.0% Peak Tracked

-18.3% Trough Tracked

$324,471 Market Cap

29.7x Rel. Volume

In the Jun 15 session, PAVS declined 8.70%, reflecting a notable negative market reaction. Argus tracked a peak move of +167.0% during that session. Argus tracked a trough of -18.3% from its starting point during tracking. Our momentum scanner triggered 86 alerts that day, indicating high trading interest and price volatility. Trading volume was exceptionally heavy at 29.7x the daily average, suggesting significant selling pressure.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock moved -8.7% in the session following this news. A negative reaction despite the ATM progra...

Analysis

The stock moved -8.7% in the session following this news. A negative reaction despite the ATM program’s termination fits a pattern where capital structure changes have generated volatile trading. The stock previously moved 21.84% higher on an offering but also saw steep declines around reverse split and listing-related news. With a remaining $200,000,000 shelf and prior ATM capacity of $194,999,999.75, concerns about future equity issuance could have weighed on sentiment.

Key Figures

ATM shares sold: 39,248,940 shares ATM gross proceeds: US$30,967,191 Par value: $0.000012 per share +5 more

8 metrics

ATM shares sold 39,248,940 shares Class A Ordinary Shares sold under terminated ATM program

ATM gross proceeds US$30,967,191 Aggregate gross proceeds before fees from ATM program

Par value $0.000012 per share Par value of Class A Ordinary Shares referenced in termination release

ATM capacity (prospectus) $194,999,999.75 Maximum Class A Ordinary Shares value under June ATM prospectus

Pre-ATM Class A count 1,536,122 shares Outstanding Class A Ordinary Shares before June ATM program

Illustrative post-ATM A shares 189,036,122 shares Illustrative share count if full ATM amount sold at $1.04

Shelf registration size $200,000,000 Form F-3 shelf registration capacity filed Nov 2025

Price change -28.28% Move in the 24h window around ATM termination news

Previous Offering Reports

1 past event · Latest: Mar 24 (Negative)

Same Type Pattern 1 events

Date	Event	Sentiment	24h Move	Catalyst
Mar 24	Registered direct offering	Negative	+21.8%	Priced $5M offering with new shares and warrants under Form F-3 shelf.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

For offering-related news, the prior registered direct deal saw a strong positive reaction despite dilution, contrasting with today’s sharp decline on ATM termination.

Recent Company History

Recent history centers on capital structure management and Nasdaq compliance. In Dec 2025, PAVS executed a 1-for-100 reverse split, followed by a delisting notice and subsequent compliance regain in Jan 2026. A further 1-for-12 reverse split was announced for Mar 31, 2026. On Mar 24, 2026, the company priced a $5.0M registered direct offering that gained 21.84% the next day. Today’s news fits into this ongoing sequence of financings and ATM program adjustments.

Key Terms

at-the-market offering, class a ordinary shares

2 terms

at-the-market offering financial

"the related at-the-market ("ATM") offering arrangement, effective on June 14, 2026."

An at-the-market offering is a method companies use to sell new shares of stock directly into the open market over time, rather than all at once. This allows them to raise money gradually, similar to selling small pieces of a product instead of a large batch. For investors, it means the company can access funding more flexibly, but it may also increase the supply of shares and influence the stock’s price.

class a ordinary shares financial

"no further sales of the Company's Class A ordinary shares, par value $0.000012 each"

Class A ordinary shares are a type of ownership stake in a company that typically grants voting rights to shareholders, allowing them to have a say in important company decisions. They often come with priority in receiving dividends or profits, making them attractive to investors seeking influence and potential income. These shares help distinguish different levels of ownership and rights within a company's stock structure.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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NEW YORK CITY, NY / ACCESS Newswire / June 15, 2026 / PAVS (NASDAQ:PAVS) (the "Company"), a consumer products and digital commerce solutions company, today announced that it and AC Sunshine Securities LLC ("ACSS") have mutually agreed to terminate the sales agreement entered into on June 4, 2026 (the "Sales Agreement"), and the related at-the-market ("ATM") offering arrangement, effective on June 14, 2026.

The termination of the Sales Agreement and the ATM offering was made by mutual agreement of the parties and was not the result of any disagreement between the Company and ACSS regarding the terms of the Sales Agreement, the Company's operations, financial disclosures, accounting policies, or practices. As a result of the termination, no further sales of the Company's Class A ordinary shares, par value $0.000012 each (the "Class A Ordinary Shares"), will be made pursuant to the ATM and the Sales Agreement. Prior to the termination, the Company had sold an aggregate of 39,248,940 Class A Ordinary Shares under the ATM program for gross proceeds of approximately US$30,967,191 before deducting fees.

The Company remains focused on executing its strategic initiatives and advancing its long-term business objectives.

About Paranovus Entertainment Technology Limited

Paranovus Entertainment Technology Ltd. (Nasdaq:PAVS) is a consumer products and digital commerce solutions company. In March 2025, the Company completed the acquisition of the controlling equity interests of Bomie Wookoo Inc., a New York company that offers e-commerce solutions. As part of its strategic transformation, Paranovus has exited its legacy businesses, including the e-commerce, internet information, and advertising businesses in September 2023 and ceased its automobile sales business in July 2024.

For more information on our latest innovations and developments, visit https://www.pavs.ai/.

Forward-Looking Statements

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. Forward-looking statements are not guarantees 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; the Company's future acquisition opportunities; the Company's ability to identify any acquisition opportunities that fit with our business strategies; the Company's ability to consummate an attractive acquisition and realize the benefits of such transaction; product and service demand and acceptance; changes in technology; economic conditions; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic; and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the U.S. 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 investor and media inquiries, please contact:

Michael Chen
929.215.4832
ir@pavs.ai

SOURCE: Paranovus Entertainment Technology Ltd.

View the original press release on ACCESS Newswire

FAQ

What did PAVS (NASDAQ:PAVS) announce about its at-the-market offering on June 15, 2026?

PAVS announced it mutually terminated its June 4, 2026 sales agreement and related ATM offering with AC Sunshine Securities, effective June 14, 2026. According to the company, no further Class A ordinary share sales will occur under this ATM program.

How many shares did PAVS sell under its terminated ATM offering and for what proceeds?

PAVS sold 39,248,940 Class A ordinary shares under the ATM for gross proceeds of about US$30,967,191. According to the company, these proceeds are stated before deducting applicable fees and expenses associated with the program.

Why was the PAVS ATM sales agreement with AC Sunshine Securities terminated?

The ATM sales agreement was terminated by mutual agreement between PAVS and AC Sunshine Securities. According to the company, the decision did not arise from disagreements over contract terms, operations, financial disclosures, accounting policies, or related practices.

What does the termination of the PAVS ATM program mean for future share sales?

Termination of the ATM program means PAVS will not sell additional Class A ordinary shares under that specific agreement. According to the company, no further share issuances can occur pursuant to the terminated ATM and related sales agreement.

How might the terminated PAVS ATM offering affect existing PAVS shareholders?

Existing shareholders avoid further dilution from this particular ATM, as no more shares will be sold under it. However, according to the company, 39,248,940 Class A ordinary shares were already issued, which increased the total share count outstanding.

Is PAVS changing its business strategy after ending the AC Sunshine Securities ATM?

PAVS indicated it remains focused on executing strategic initiatives and long-term business objectives. According to the company, the termination of the ATM and sales agreement does not alter its broader operational goals or ongoing strategic priorities.