Company: PAVS
Filing Date: 2025-03-03
Form Type: 6-K
Source: 0001929980-25-000106
Chunk: 8

Company: Paranovus Entertainment Technology Ltd.
Filing Date: 2025-03-03
Form: 6-K
Chunk 8
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 that such analyses, and the best-estimate assumptions made by PAVS, may not be realized. If management misjudges the risks or benefits of BW’s business, the share price may decline.

Resources expended in pursuit of the Proposed Transaction would be wasted if the Proposed Transaction is not completed.

The investigation of BW, the negotiation, drafting and execution of the agreements signed in connection with the Proposed Transaction, and the preparation of related disclosure documents and other filings required substantial management time and attention and substantial costs for accountants, attorneys, consultants and others. If PAVS fails to complete the Proposed Transaction for any number of reasons, many of which are beyond PAVS’s control, it will result in a loss to PAVS of the related costs incurred.

PAVS’s management has interests in the Proposed Transaction that are different than Shareholders generally.

PAVS’s management interests in the Proposed Transaction are different from, or in addition to, those of other Shareholders generally. The existence of the financial and personal interests of management described in this risk factor may result in a conflict of interest on the part of PAVS’s management between what they may believe is best for PAVS and what they may believe is best for themselves in determining whether or not to take the requested action.

Share market conditions

There are risks associated with any investment in securities. General factors that may affect the market price of shares include economic conditions in the US and internationally, investor sentiment, local and international share market conditions, changes in interest rates and the rate of inflation, changes to government regulation, policy or legislation, changes which may occur to the taxation of companies as a result of changes in US taxation laws, and changes in exchange rates.

These factors may materially affect the market price of shares regardless of the Company’s performance. As such, the past performance of the Company or BW is not necessarily an indication as to the future performance of the Company.

Tax consequences

If the Proposed Transaction is implemented, there may be tax consequences for Shareholders. Shareholders should seek their own professional advice regarding the individual tax consequences of the Proposed Transaction applicable to them. For example, Shareholders may be exposed to potentially higher capital gains tax liability when compared to their current investment in the Company.

De-listing due to failure to comply with Nasdaq Capital Market listing standards

The Company cannot provide assurance that it will be able to continue to comply with the standards required to maintain a listing on the Nasdaq Capital Market, such as the corporate governance, minimum stockholder’s equity, minimum bid