Connexa Sports Technologies Inc., the owner of Slinger Bag, Gameface AI and, subject to approval by its shareholders, Yuanyu Enterprise Management (YYEM), is reporting that its Board of Directors has approved the change of its ticker symbol to YYAI, effective immediately, from the market opening on Monday, April 22.
The company changed its name from from Slinger Bag, Inc. to Connexa Sports Technologies Inc. in May 2022.
“Following our recent announcement to acquire 70 percent of YYEM, as a pathway to deliver enhanced value to all of our shareholders, the Board of Directors concluded that this change in our Nasdaq ticker symbol to YYAI was in line with this plan and represented a more appropriate reflection of the future business operation,” commented Mike Ballardie, CEO, Connexa Sports Technologies.
Connexa signed definitive share purchase and share exchange agreements to acquire the 70 percent stake in Hong Kong-based YYEM for a combined value of $56 million. The transaction is expected to be carried out in two steps, with an initial 20 percent stake having been completed against payment of $16.5 million in cash, and the residual 50 percent stake completing on the closing date through the issuance of common stock.
As part of this deal structure, there will be a change-in-control of Connexa following the appointment of a new board of directors, subsequent to which Slinger Bag Americas will be divested to a newly established entity.
“Over the past year, the Connexa board and management have reviewed the company’s potential to directly deliver meaningful enhancements in shareholder value, and concluded that the optimum short-term opportunity to deliver such value for all shareholders was to conclude this acquisition, accept a change-in-control of Connexa, and divest the Slinger Bag business to a newly established entity,” added Ballardie.
“Having come to understand the emerging business sector in which YYEM operates, and in realizing the scope of their growth opportunity, which will be delivered through their plans for organic Asia expansion coupled with an aggressive international licensing program, I am in no doubt that YYEM will provide all existing Connexa shareholders with an associated opportunity to share in their success,” concluded Ballardie.
Established in November 2021, YYEM is based in Hong Kong and operates in the emerging love & marriage market sector, where it owns significant proprietary intellectual property (IP) unique to this business sector, covering its online presence and underpinning its matchmaker operations. Its matchmaker AI application has the ability to 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. Additionally, YYEM owns six technologies related to the metaverse and nine AI matchmaking patents, which together enable access to both Augmented Reality (AR) and Extended Reality (XR), further enhancing its future revenue growth potential.
Through interrogating and analyzing available Big Data, the YYEM IP supports the identification of its target subscriber base, while also providing subscriber profile analyses and integrating seamlessly with YYEM’s patented matchmaker AI platform — all of which combine to deliver YYEM’s unique matchmaking events and help subscribers to find successful life partnerships.
The company said YYEM has already proven its business model in the China market, where its licensee partner operates 200 Hand-in-Hand branded retail stores across 40 cities. One-time subscriber matchmaker fees, of amounts as high as $1,500, provide the subscriber with a bespoke matchmaking service delivered through face-to-face interactions across their owned stores. YYEM’s retail operation sets it apart from its prominent competitors, with storefronts expected to grow to 1,000 in 2024 and to 10,000 within three years, increasing the registered subscriber base to over 3 million in 2024 and, in turn, rapidly growing the revenue base.
YYEM collected royalties of around $1.9 million in its fiscal year ended January 31, 2024 and has already established license agreements covering the UK/Europe, South East Asia and Sub-Saharan Africa, with cumulative contracted revenue over the next three years in excess of $70 million.
Mr. Zhou, Chairman of YYEM, commented, “I am delighted to have reached this agreement to merge our love & marriage business into Connexa and, ultimately, following the shareholder vote process, become a Nasdaq-listed company. My vision is to establish YYEM as a global leader in matching single adults for marriage and lifelong partnerships, the world over, through our unique matchmaker business model combining on-line activities with retail store operations. Our current China license partner has a successful and proven business model that provides a template for future markets and licensees to follow. I am also excited to have the opportunity to expand the YYEM footprint globally to drive revenue growth that in turn will deliver significant improvements in value for all current and future Connexa shareholders.”
Well, for a business that started out as a racquet sports company and now turning to matchmaking, the score is Love-0 for this deal.
Image courtesy Slinger Bag Americas
