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Color Star Technology Co., Ltd. SEC Report: $40M Securities Offering Insights

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Form 6-K
Filed on: 2025-01-17
Source
Color Star Technology Co., Ltd. SEC Report: $40M Securities Offering Insights

Here are the key insights extracted from the financial report:

  1. Company Overview: The report pertains to Color Star Technology Co., Ltd., a foreign private issuer, filed under SEC Form 6-K.
  2. Securities Offering: The company is conducting a third closing of a securities offering in accordance with a securities purchase agreement (SPA), which could allow it to raise up to $40 million through senior secured convertible notes and accompanying warrants.
  3. Details of the Offering:
  • On January 16, 2025, the company executed an Additional Closing, issuing approximately $8.7 million in senior secured convertible notes (the "New Notes").
  • The New Notes feature an 8% original issue discount, a 6% annual interest rate, and a maturity date set for one year from issuance.
  • The notes can be converted into Class A Ordinary Shares at a conversion price of $2.11, with specific conditions for conversion based on market performance.
  1. Warrants Issued: Alongside the New Notes, the company will provide Series B Warrants, allowing the purchase of up to 2,467,692 Ordinary Shares at an exercise price of $2.11 per share.
  2. Proceeds Utilization: The proceeds from this offering are intended for general corporate and working capital purposes.
  3. Placement Agent: Maxim Group, LLC is acting as the exclusive placement agent for this offering, receiving a fee of 6.5% of the gross proceeds.
  4. Amendments and Compliance: An amendment to the SPA was made on January 16, 2025, to revise definitions related to Exempt Issuances, while other terms of the SPA remain unchanged.
  5. Registration Statement: The offering is being made as a take-down from the company's shelf registration statement on Form F-3, which was declared effective by the SEC.
  6. Signature and Authority: The report is signed by Louis Luo, the Chief Executive Officer, affirming the document's authenticity and compliance with SEC requirements.

This summary encapsulates the crucial financial activities and corporate actions of Color Star Technology Co., Ltd. as reported in the SEC filing.