Blue Hat Announces Progress of Acquisition of Gaming Development Company Huiben Network Technology
China's leading developer, manufacturer and operator of augmented reality (AR) interactive entertainment toys, games and educational productsBlue Hat Interactive Entertainment Technology(“Blue Hat” or “Company”) (NASDAQ: BHAT) announced today that the Company has formally signed an updated “Investment Framework Letter of Intent” (“Letter of Intent”) with Fuzhou Huiben Network Technology Co., Ltd. (“Huiben Network Technology” or “Target Company”). The company plans to acquire 51% of the tradable shares of the offshore holding companies of Huifenwang Technology's two subsidiaries, thereby holding 51% of Huifenwang Technology's controlling shares. Huifen Network Technology is a domestic mobile game developer and seller with a good user base in mainland China, Japan, Taiwan, the United Arab Emirates and Africa. Closing of the transaction will be subject to due diligence findings and the application of regulations.
At the end of 2019, the company hadAnnouncing the signing of a letter of intent. Although the COVID-19 pandemic delayed the entire transaction, the management teams of the two sides overcame various difficulties to push for the signing of the letter of intent. The company expects the entire transaction to be completed in the fourth quarter of 2020. However, there is no guarantee that the scheduled transaction will be completed.
Trade terms
Management comments
Chen Xiaodong, CEO of Blue Hat, said, “We believe this merger and acquisition is of great significance to the adjustment and development of Blue Hat's overall strategic layout. Huifen Network Technology's business covers more than 100 game products, and has a huge user base in many countries and regions in Asia and Africa. Through this merger and acquisition, we can not only integrate Huiben Technology's product development technology, operation and distribution resources to strengthen channel layout; it can also help us improve our product structure and enhance our overall revenue level and marketing capabilities.”
Mr. Chen added, “After the completion of this transaction, the market development context for our three main businesses, AR education, AR toys, and online games, has gradually become clear. In the future, we will make full use of technology drivers to improve the market competitiveness and market coverage of our main business products, thereby improving the company's overall profit level and creating long-term market value for the company's shareholders.”
About Blue Hat Interactive Entertainment Technology
Blue Hat Interactive Entertainment Technology (NASDAQ: BHAT) is a leading developer, manufacturer and operator of augmented reality (AR) interactive entertainment toys and games in China. It is committed to providing children and young people with immersive entertainment and learning experiences, independently develops innovative toys and interactive educational content with AR technology and mobile game functions, and has extensive intellectual property rights in the fields of light-sensitive technology, gesture sensor technology, infrared sensing technology, and AR recognition technology. For more information, visit the company's website:www.bluehatgroup.com. The company will routinely post important information on its official website.
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