Color Star Technology Co., Ltd. (NASDAQ: CSCW) (hereinafter referred to as “Color Star” or the “Company”), today announced the signing of a sponsorship agreement with Dubai-based Safa Capital Limited to officially launch the Company’s secondary listing on NASDAQ Dubai. After completion of the listing, Color Star will become the world’s first dual-listed entertainment technology company in the United States and United Arab Emirates (UAE).
NASDAQ Dubai (www.nasdaqdubai.com) is the most important stock exchange in the Middle East. As a long-established center of global energy trade, the Middle East engages in vast international trade and has a developed financial market that gives access to the region’s enormous wealth. Dubai, being the most prominent and economically free market in the Middle East, boasts a stock market that is crucial to the region.
The CEO of Color Star, Mr. Luke Lu, commented: “CSCW has already helped to establish the Arab offline cultural entertainment business, as well as the online service business. As CSCW’s business expands and strengthens in the Middle East, including its offline business, there is strong demand for such services in the local market, such as the aforementioned LiveHouse, which brings considerable annual revenue to the Company. As CSCW’s business in the region grows, its listing on NASDAQ Dubai was a natural next step. Because CSCW is already a recognized name in the local market, its listing on NASDAQ Dubai means that local institutions can now invest directly in CSCW’s business and project developments, and become partners supporting the Company’s regional development. It is a win-win situation; as local institutions lend and invest in CSCW to diversify the structural risk of investing almost entirely in energy, CSCW can better access low-cost capital for further regional business growth.
The Company’s listings on US NASDAQ and NASDAQ Dubai are expected to have a mutually beneficial, but different purpose. Listing on the former is a capital operation based on overall consideration of the Company, while listing on NASDAQ Dubai is intended to support and develop its business in the Middle East by giving the Company access to low-cost, local capital. All shareholders should benefit from this arrangement. Having successfully completed the capital market requirements of listing on NASDAQ Dubai, the Company should be able to significantly raise capital reserves to support business development and expansion in the Middle East, which boasts a population of ~420 million people. The impending listing on NASDAQ Dubai demonstrates how CSCW is able to utilize the strength of its various internal businesses (multi-level, multi-sector, and cross-regional corporate structure) to take advantage of geographic resources and opportunities, and will show, over time, the value and potential of its business structure. Upon listing on NASDAQ Dubai, the Company will be the first entertainment technology company to be dual-listed in both the United States and UAE.”