Highlights

  • Paranovus agreed on 30 July 2026 to buy the Heyviva athletic wear Brand Assets from Jabanero for US$33 million cash.
  • Fiscal 2026 Revenue reached US$14.6 million, up from US$71,542, reflecting a full year of the Bomie Wookoo business.
  • Net loss attributable to shareholders widened to US$12.7 million, including US$11.3 million of Goodwill and asset impairments.
  • The company raised about US$10 million in a June 2026 registered offering before a 1-for-100 reverse split.

Paranovus Entertainment Technology Ltd. (NASDAQ:PAVS) is steering its Business toward E-commerce and social commerce, backing the shift with a US$33 million cash purchase of the Heyviva athletic wear brand that closed on 5 August 2026.

The New York-based Holding Company said that, after fiscal 2026, lower margins in offline sales led it to concentrate on e-commerce and e-commerce enablement services, while continuing offline sales on an opportunistic basis.

Heyviva Adds a US Athletic Wear Brand

Paranovus signed a non-binding letter of intent with New York-based Jabanero Inc. on 15 June 2026 and, after due diligence, entered an asset purchase agreement on 30 July. It acquired substantially all assets of Jabanero's athletic wear business and the Heyviva brand, including US trademarks, domain names, websites, Social Media accounts, inventory, customer records and goodwill.

The price is payable in four cash instalments: US$16.5 million at signing, US$4.95 million after the domain name transfer, US$4.95 million after US Trademark ownership is recorded, and US$6.6 million once all other assets are transferred. Jabanero keeps its EU and UK trademarks, over which Paranovus holds a seven-year right of first refusal. Management expects the brand to create synergies with its social commerce capabilities.

Fiscal 2026 Reflects the Bomie Wookoo Business

Paranovus owns 51% of Bomie Wookoo Inc., acquired on 25 March 2025 for US$22.44 million in cash. The business wholesales footwear and other consumer products, sells handbags and gift items through its own TikTok Shops and direct-to-consumer channels, and offers livestreaming, influencer and Advertising services to third-party merchants.

For the fiscal year ended 31 March 2026, revenue rose to US$14.6 million from US$71,542, and Gross Profit reached US$2.41 million. Goodwill Impairment of US$6.56 million and asset impairment of US$4.73 million drove an operating loss of US$14.66 million. The net loss attributable to the company widened to US$12.73 million from US$7.89 million.

Cash and cash equivalents stood at US$10.3 million on 31 March 2026, with short-term investments of US$4.95 million. Management concluded that internal controls over financial reporting were not effective at year-end.

Capital Raising and Share Structure Changes

On 16 June 2026, Paranovus closed a registered offering of Class A shares and pre-funded warrants, raising gross proceeds of about US$10 million for working Capital and general corporate purposes, with A.G.P./Alliance Global Partners as exclusive financial adviser. A 1-for-100 reverse split followed on 29 June, after a 1-for-12 reverse split on 31 March 2026.

On 2 July, Happy Group Inc., wholly owned by Chairwoman Minzhu Xu, bought 12,500 Class B shares at US$8.00 each for US$100,000, lifting her voting power to about 54.32%. HCL, PLLC replaced HHL LLP as auditor effective 26 June 2026.