Connexa Shareholders Approve Transaction to Acquire Yuanyu Enterprise Management

Rhea-AI Summary

Connexa Sports Technologies (Nasdaq: YYAI) announced that its shareholders have approved the acquisition of Yuanyu Enterprise Management (YYEM) and a change-of-control transaction involving Slinger Bag. The approval was given at the AGM held on May 15, 2024. The completion of these transactions is pending Nasdaq approval. Post-approval, Connexa will issue approximately 162 million shares of common stock to Hongyu Zhou, the sole shareholder of YYEM, giving him a controlling interest in Connexa. Subsequently, Connexa will divest all Slinger Bag assets and liabilities to a privately held company. CEO Mike Ballardie expressed gratitude to the shareholders for their support.

Positive

• Shareholders approved the acquisition of Yuanyu Enterprise Management.
• The transaction allows for a controlling interest by Hongyu Zhou, potentially bringing new strategic direction.
• The deal involves issuing 162 million shares, potentially increasing market liquidity.
• Divesting Slinger Bag assets could streamline Connexa's focus and reduce liabilities.

Negative

• The transaction is pending Nasdaq approval, which introduces uncertainty.
• Issuing 162 million shares could lead to significant dilution of existing shareholders’ equity.
• Change-of-control might bring strategic risks and management challenges.
• Divesting Slinger Bag assets could mean loss of revenue streams associated with the brand.

• A change-of-control and spin-off of Slinger Bag
  also receive shareholder consent
  
• The close of these transactions remains subject to Nasdaq Approval

Windsor Mills, MD, May 17, 2024 (GLOBE NEWSWIRE) -- Connexa Sports Technologies Inc. (Nasdaq: YYAI), the owner of Slinger Bag and Gameface AI, announced that at its AGM, held on May 15, the company’s shareholders approved the acquisition of Yuanyu Enterprise Management Co., Limited (“YYEM”). Pending Nasdaq approval of the related change of control, Hongyu Zhou, the sole shareholder of YYEM, will own a controlling interest in Connexa.

“Following our recent announcement to acquire 70% of YYEM, as a pathway to deliver enhanced value to all of our shareholders, we are grateful to our shareholders for their support of the board in approving this transaction,” commented Mike Ballardie, CEO of Connexa.

“On receiving the approval of the company’s listing application from Nasdaq, Connexa will proceed to issue approximately 162 million shares of common stock to Hongyu Zhou, the sole shareholder of YYEM, to complete the transaction, leaving him with a controlling interest in Connexa. On the close of this transaction, Mr. Zhou will effect, and Connexa will accept, a change-of-control of Connexa, with all Slinger Bag assets and liabilities being divested to a privately held company,” concluded Ballardie.

Press release ends

More detailed information on Connexa Sports Technologies and Slinger Bag can be found at www.connexasports.com

About Connexa Sports Technologies:

Connexa Sports is a leading connected sports company delivering products, technologies, and Sport-as-a-Service across a range of sport verticals. Connexa’s mission is to reinvent sports through technological innovation driven by an unwavering focus on today’s sports consumer.

CNXA Contact Information:
investors@connexasports.com
www.connexasports.com

About Yuanyu Enterprise Management Co., Limited

Yuanyu Enterprise Management Co., Limited (YYEM) operates across the rapidly emerging love & marriage sector. YYEM owns numerous patents, technologies and algorithms that drive its big data and matchmaking analyses, deriving its current revenues from royalties. YYEM has multiple licensing agreements in place for non-Asia regions and, in addition, plans to open subsidiary companies in core Asia markets.

YYEM Contact Information:
info@yuanyuenterprise.com
www.yuanyuenterprise.com

Additional Information and Where to Find It

The Company’s stockholders will be able to obtain relevant documents filed with the SEC from the SEC’s website at www.sec.gov or from the Company’s website at https://www.connexasports.com/investor-relations/

Forward-Looking Statements

This press release contains forward-looking statements. Statements that are not historical facts, including statements about beliefs or expectations, are forward-looking statements. These statements are based on plans, estimates, expectations and projections at the time the statements are made, and readers should not place undue reliance on them. In some cases, readers can identify forward-looking statements by the use of forward-looking terms such as “may,” “will,” “should,” “expect,” “opportunity,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” or “continue,” or the negative of these terms or other comparable terms. Forward-looking statements involve inherent risks and uncertainties and readers are cautioned that a number of important factors could cause actual results to differ materially from those contained in any such forward-looking statements. Factors that could cause actual results to differ materially from those described in this press release include, among others:

• uncertainties as to Nasdaq approval, the change of control and the share exchange agreement, including the risk that one or more of the transactions may involve unexpected costs, liabilities or delays;
  
  
• the risks associated with the company’s relatively low public float, which may result in the company’s common stock experiencing significant price volatility;
  
  
• the possibility that competing transaction proposals may be made;
  
  
• the effects that the announcement, pendency or consummation of the proposed acquisition of YYEM and the spin-off of the Slinger Bag business may have on the Company and its current or future business and on the price of the common stock;
  
  
• the possibility that various closing conditions for acquisition of YYEM and the spin-off of the Slinger Bag business may not be satisfied or waived, or any other required consents or approvals may not be obtained within the expected timeframe, on the expected terms, or at all;
  
  
• the effects that a termination or suspension of the acquisition of YYEM and the spin-off of the Slinger Bag business may have on the company, including the risk that the price of the common stock may decline significantly if the acquisition of YYEM and the spin-off of the Slinger Bag business is not completed;
  
  
• uncertainties regarding the company’s focus, strategic plans and other management actions;
  
  
• the risks associated with potential litigation related to the transactions contemplated by the acquisition of YYEM and the spin-off of the Slinger Bag business or related to any possible subsequent financing transactions or acquisitions or investments;
  
  
• uncertainties regarding general economic, business, competitive, legal, regulatory, tax and geopolitical conditions;
  
  
• and other factors, including those set forth in the Company’s filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended April 30, 2023 and subsequent Quarterly Reports on Form 10-Q.
  
  

Forward-looking statements included in this report speak only as of the date each statement is made. Neither the company nor any person undertakes any obligation to update any of these statements in light of new information or future events, except to the extent required by applicable law.

FAQ

What was approved in Connexa's AGM on May 15, 2024?

Shareholders approved the acquisition of Yuanyu Enterprise Management and a change-of-control transaction involving Slinger Bag.

What is the stock symbol for Connexa Sports Technologies?

The stock symbol for Connexa Sports Technologies is YYAI.

Who will gain controlling interest in Connexa after the acquisition of YYEM?

Hongyu Zhou, the sole shareholder of YYEM, will gain controlling interest in Connexa.

How many shares will Connexa issue to Hongyu Zhou?

Connexa will issue approximately 162 million shares of common stock to Hongyu Zhou.

What will happen to Slinger Bag assets after the transaction?

All Slinger Bag assets and liabilities will be divested to a privately held company.

What major condition needs to be met before the acquisition can be completed?

The acquisition is pending Nasdaq's approval of the related change-of-control.