Color Star Technology Co., Ltd. (Nasdaq CM: HHT), a company engaged in the businesses of providing education services, announced today that it has entered into a securities purchase agreement on September 15, 2020 with certain accredited investors to purchase $6.6 million worth of its ordinary shares in a registered direct offering and warrants to purchase ordinary shares in a concurrent private placement.
Under the terms of the securities purchase agreement, the Company has agreed to sell 13.2 million ordinary shares. In a concurrent private placement, the Company has agreed to issue unregistered warrants to purchase up to 11.88 million ordinary shares. The warrants will be exercisable immediately upon the date of issuance and have an exercise price of $0.55. The warrants will expire five years and six months from the date of issuance. The purchase price for one ordinary share and a corresponding warrant will be $0.50. The gross proceeds to the Company from the registered direct offering and concurrent private placement are estimated to be $6.6 million before deducting the placement agent's fees and other estimated offering expenses. The registered direct offering and concurrent private placement are expected to close on or about September 17, 2020, subject to the satisfaction of customary closing conditions.
Maxim Group LLC ("Maxim") is acting as sole placement agent in connection with this offering.
About Color Star Technology Co., Ltd.
Color Star Technology Co, Ltd. (Nasdaq CM: HHT) offers online and offline knowledge-paid services for music and entertainment industries globally. Its official website is www.colorstarinternational.com. The Company routinely posts important information on its website. Its business operations are conducted through its wholly-owned subsidiaries Color China Entertainment Ltd. and CACM Group NY, Inc. The Company's online education is provided through its Color World music and entertainment education platform. The Company also offers after-school entertainment tutoring in New York via its joint venture entity Baytao LLC.
