Paranovus Entertainment Technology Ltd. (NASDAQ:PAVS) shares jumped 34.26% to $6.59 in after-hours trading Wednesday, following a Securities and Exchange Commission filing confirming Paranovus closed its acquisition of the athletic wear brand Heyviva from Jabanero Inc.
Jabanero is a New York-based consumer brand holding company that specializes in women’s activewear and lifestyle products.
Deal Structure Shifts From Original Proposal
According to the SEC filing, the deal, which closed Wednesday, was structured as an asset purchase rather than the equity acquisition originally proposed in a June letter of intent.
The transaction carries a $33 million aggregate price tag, payable in staged cash installments tied to transfer milestones for trademarks, domains and other assets.
Social Commerce Synergies Cited
Acquired assets include U.S. trademarks, customer data, inventory, and social media accounts, while EU/UK trademark rights remain with Jabanero under a right-of-first-refusal arrangement.
Paranovus said the deal is expected to create synergies with its existing social commerce business.
CEO Xiaoyue Zhang signed the filing.
Paranovus Entertainment, a New York-based company focused on AI-driven games and applications, has 857,000 shares outstanding.
Trading Metrics, Technical Analysis
Paranovus has a market capitalization of $4.27 million, with a 52-week high of $148,800 and a 52-week low of $3.77.
The Relative Strength Index (RSI) of PAVS stands at 25.31.
The stock has fallen 99.8% over the past 12 months.
PAVS is currently trading close to its annual low.
Price Action: The small-cap entertainment stock closed at $4.91 on Wednesday, up 0.20%, according to Benzinga Pro data.
Benzinga’s Edge Stock Rankings indicate that PAVS has a negative price trend across all time frames.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: FabrikaSimf on Shutterstock.com
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