Connexa Sports Technologies Inc. (Nasdaq:YYAI) the 20% owner of
Yuanyu Enterprise Management Co., Limited (YYEM), a Hong Kong-based
entity focused on the global Love & Marriage sector, today
announced that it has entered into an exclusive license agreement
with Guofu Enterprise Management Co., Limited, a Hong Kong-based
entity, covering Hong Kong, Japan, South Korea, and Southeast Asia
(in particular, Brunei, Cambodia, Indonesia, Laos, Malaysia,
Myanmar, the Philippines, Singapore, Thailand, and Vietnam).
Building on an earlier term sheet, this agreement calls for minimum
royalty payments to YYEM of more than $30 million through 2026.
“This license agreement is part of a series of
similar agreements designed to globalize YYEM’s business and
clearly establish it as a leader in the emerging Love &
Marriage sector through its patented AI-led matchmaking process. An
agreement was also signed earlier this week covering the UK and the
major markets of Europe. This latest agreement enables YYEM to
capitalize on the substantial opportunities in the online dating
and matchmaking market in East and Southeast Asia,” commented Mike
Ballardie, CEO of Connexa.
“The Asia market for dating and matchmaking
services is relatively underdeveloped in comparison with the United
States, with significant potential for growth. The U.S. online
dating market has risen to approximately $1.4 billion in 2023.2
Match and Bumble, focusing primarily on dating in their home market
in the United States, rose to valuations of approximately $9.8
billion and $1.9 billion, respectively, by the end of 2023.3 Having
come to understand this emerging business sector and the scope of
YYEM’s global growth opportunity within the matchmaking market as
well as the online dating market, I am in no doubt that YYEM will
be able to capitalize on these opportunities and provide Connexa
shareholders a chance to share in YYEM’s future success,” concluded
Ballardie.
“Connexa’s 20% ownership stake in YYEM, which
will increase to 70% subject to approval by Nasdaq, is part of
management’s effort to secure meaningful enhancements in
shareholder value. YYEM’s expansion across East and Southeast Asia,
a market with great upside potential reaffirms the strategic
direction taken by Connexa’s management and board earlier this year
in concluding an agreement to acquire YYEM, a company with both a
strong balance sheet and exciting growth prospects, which together
will drive added value for our shareholders,” commented
Ballardie.
YYEM operates in the emerging Love &
Marriage market sector, where it owns significant proprietary
intellectual property unique to this business sector, covering its
licensees’ online presence and underpinning their matchmaker
operations. It owns six technologies related to the metaverse and
five AI matchmaking patents, which together enable access to both
Augmented Reality (AR) and Extended Reality (XR), enhancing its
future revenue growth potential. YYEM’s AI technology can also
integrate with existing Big Data models and other larger AI models,
such as Huawei Pangu 3, a feature designed to operationalize its AI
and hone its technologies to create significant business value by
helping its licensees deliver effective matchmaking services and
helping their clients find successful life partnerships.
YYEM has already proven its business model, with
one licensee partner integrating YYEM’s technology with their
operations across a network of retail stores, the number of which
is expected to grow substantially over the coming two years.
Hongyu Zhou, Chairman of YYEM, commented, “I am
delighted to have concluded this licensing agreement with our Hong
Kong-based partner covering so many key markets in East and
Southeast Asia. Along with the recently signed license agreement
covering the UK and Europe, this is a key part of my vision to
establish YYEM as a global leader in matching single adults for
marriage and lifelong partnerships, the world over, through a
unique AI-led matchmaker business model that combines online
activities with retail store operations. Our existing license
partner has already proven how successful this business model can
be for our licensees, and we will now work closely with our new
Asian and European licensees to help ensure the success of their
matchmaking operations. It is a very exciting time for YYEM as we
expand our business footprint globally, driving revenue growth that
we believe will, in turn, deliver significant value improvements
for current and future YYAI shareholders.”
About Connexa Sports Technologies:
Connexa Sports is a leading connected
sports company delivering products, technologies, and
Sport-as-a-Service across a range of sport verticals. Connexa’s
mission is to reinvent sports through technological innovation
driven by an unwavering focus on today’s sports consumer.
CNXA Contact
Information:investors@connexasports.comwww.connexasports.com
About Yuanyu Enterprise Management Co.,
Limited
Yuanyu Enterprise Management Co., Limited (YYEM)
operates across the rapidly emerging love & marriage sector.
YYEM owns numerous patents, technologies and algorithms that drive
its big data and matchmaking analyses, deriving its current
revenues from royalties. YYEM has multiple term sheets in place for
license agreements in distinct regions around the world.
YYEM Contact
Information:info@yuanyuenterprise.comwww.yuanyuenterprise.com
Forward-Looking Statements
This press release contains forward-looking
statements. Statements that are not historical facts, including
statements about beliefs or expectations, are forward-looking
statements. These statements are based on plans, estimates,
expectations and projections at the time the statements are made,
and readers should not place undue reliance on them. In some cases,
readers can identify forward-looking statements by the use of
forward-looking terms such as “may,” “will,” “should,” “expect,”
“opportunity,” “intend,” “plan,” “anticipate,” “believe,”
“estimate,” “predict,” “potential,” or “continue,” or the negative
of these terms or other comparable terms. Forward-looking
statements involve inherent risks and uncertainties and readers are
cautioned that a number of important factors could cause actual
results to differ materially from those contained in any such
forward-looking statements. Factors that could cause actual results
to differ materially from those described in this press release
include, among others:
- uncertainties as to Nasdaq
approval, the change of control and the share exchange agreement,
including the risk that one or more of the transactions may involve
unexpected costs, liabilities or delays;
- the risks associated with the
company’s relatively low public float, which may result in the
company’s common stock experiencing significant price
volatility;
- the possibility that competing
transaction proposals may be made;
- the effects that the announcement,
pendency or consummation of the proposed acquisition of YYEM and
the spin-off of the Slinger Bag business may have on the Company
and its current or future business and on the price of the common
stock;
- the possibility that various
closing conditions for acquisition of YYEM and the spin-off of the
Slinger Bag business may not be satisfied or waived, or any other
required consents or approvals may not be obtained within the
expected timeframe, on the expected terms, or at all;
- the effects that a termination or
suspension of the acquisition of YYEM and the spin-off of the
Slinger Bag business may have on the company, including the risk
that the price of the common stock may decline significantly if the
acquisition of YYEM and the spin-off of the Slinger Bag business is
not completed;
- uncertainties regarding the
company’s focus, strategic plans and other management actions;
- the risks associated with potential
litigation related to the transactions contemplated by the
acquisition of YYEM and the spin-off of the Slinger Bag business or
related to any possible subsequent financing transactions or
acquisitions or investments;
- uncertainties regarding general
economic, business, competitive, legal, regulatory, tax and
geopolitical conditions;
- and other factors, including those
set forth in the Company’s filings with the U.S. Securities and
Exchange Commission, including its Annual Report on Form 10-K for
the fiscal year ended April 30, 2024 and subsequent Quarterly
Reports on Form 10-Q.
Forward-looking statements included in this
report speak only as of the date each statement is made. Neither
the company nor any person undertakes any obligation to update any
of these statements in light of new information or future events,
except to the extent required by applicable law.
1
https://www.statista.com/outlook/emo/dating-services/matchmaking/worldwide2 https://www.statista.com/statistics/1358059/global-revenue-largest-online-dating-markets/#:~:text=Online%20dating%20services%20in%20the,and%20198%20million%20USD%2C%20respectively.
3 See annual report on Form 10-K, for the year
ended December 31, 2023, for Match.com:
https://www.sec.gov/ix?doc=/Archives/edgar/data/891103/000089110324000014/mtch-20231231.htm;
and for Bumble:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1830043/000095017024022104/bmbl-20231231.htm;
and the historical share prices on Nasdaq.com (using ticker symbols
MTCH and BMBL, respectively).
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