Company: PAVS
Filing Date: 2025-03-03
Form Type: 6-K
Source: 0001929980-25-000106
Chunk: 7

Company: Paranovus Entertainment Technology Ltd.
Filing Date: 2025-03-03
Form: 6-K
Chunk 7
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 decide at any time to curtail or inhibit BW’ ability to use such platforms if BW breach the terms of use of such platforms or for any other reason. Additionally, these platforms may increase their fees or make changes to their respective business models, terms of use, policies, or systems, and those changes could impair or restrict BW’ ability to post content. Further, platforms could cease operations unexpectedly due to a number of events, including interruptions in telecommunication services, computer viruses, and security breaches. Any of the above could reduce BW’ ability to post marketing content, drive user traffic, and reach target audiences, and thus impair BW’ ability to serve their customers, any of which could affect their ability to achieve profitability or have a material adverse effect on their business, financial condition and results of operations.

BW’s failure to maintain and grow its client base may negatively impact its revenue and business.

To sustain or increase the revenue, BW must regularly add new clients and encourage existing clients to maintain or increase the amount of marketing services purchased, as well as to adopt new features and functionalities BW offers. If competitors introduce lower-cost or differentiated offerings that compete with, or are perceived to compete with BW’s, BW’s ability to attract new clients or retain existing ones could be impaired. BW cannot assure you that the clients will continue to use its services, or that BW will be able to replace, in a timely or effective manner, departing clients with new ones that generate comparable revenue. If a major client representing a significant portion of the business decides to materially reduce its use of BW’s services or to cease using BW’s services altogether, it is possible that BW’s revenue could be significantly reduced.

Risks Related to the Proposed Transaction

PAVS may be unable to satisfy the conditions to closing the Proposed Transaction.

The consummation of the Proposed Transaction is subject to approval by the shareholders of PAVS and BW and the satisfaction or waiver of the other closing conditions set forth in the relevant agreement. There can be no assurance, however, that these closing conditions will be satisfied or waived.

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BW operates in an industry that is outside of PAVS management’s area of expertise.

Although PAVS management has endeavored to evaluate the risks inherent in BW’s business, there can be no assurance that PAVS has adequately ascertained or assessed all of the significant risk factors. PAVS has undertaken financial, commercial and other analyses of BW to determine its attractiveness as an acquisition target, and whether to pursue the Proposed Transaction. It is possible