Paranovus Entertainment's Strategic $450K Loan: 6-K Report Insights

Here are the key insights extracted from the provided section of the financial report:

1. Company Information:

• Name: Paranovus Entertainment Technology Limited
• Address: 250 Park Avenue, 7th Floor, New York, NY 10177
• Contact: 516-951-9074

2. Report Type:

• Form: 6-K (Report of Foreign Private Issuer)
• Filing Date: January 17, 2025
• Reporting Period: January 2025

3. Material Agreement:

• On January 13, 2025, the company entered into a Promissory Note Purchase Agreement with Ms. Minzhu Xu, the chairperson of the Board.
• The company issued an 8% promissory note with a principal amount of $450,000.
• The note matures 12 months after issuance and allows for pre-payment by the company.
• Proceeds from the note will be utilized for the company's general working capital.

4. Approval Process:

• The agreement was unanimously approved by the audit committee of the Board, which consists solely of independent directors.

5. Exhibits:

• The report includes forms of the Purchase Agreement and the Promissory Note as Exhibits 10.1 and 10.2 respectively.

6. Signature:

• The report was signed by Xiaoyue Zhang, the Chief Executive Officer, affirming the authenticity of the document.

This information indicates a strategic financial maneuver by Paranovus Entertainment to secure funding through a loan structure while adhering to proper governance protocols by involving independent directors in the approval process.