Color Star Skyrockets 22% on Mixx Lifestyle Partnership
Shares of Color Star Technology Co. Ltd. surged nearly 22% by midday Wednesday on news that its wholly-owned subsidiary signed a deal with the operator of two craft beer and food stores Mixx Lifestyle Inc. in efforts to set up a network with online and offline education with live music programs.
The agreement will allow Color China Entertainment Ltd. (Color China) and Mixx to partner and construct a "first-tier" live music venue at 135 West 41st Street in New York City, according to the company's statement today. The area will serve as an offline training base, in which Color China will provide all needed performance equipment to support the collaboration.
The company is also looking to set up an offline education site in the city, citing the area is an attractive draw for many celebrities, artists and entertainment professionals.
After the epidemic, Color Star intends on inviting "many renowned" artists and celebrities to help instruct lessons at its New York learning site and record them for its online education platform.
In addition, beginning from the second half, Colar Star plans to launch "several" offline learning sites in places including Europe, Southeast Asia, and China.
"We hope that in the near future, Color Star will become a pioneer in providing celebrity-taught education services that can be accessible both online and offline, providing students with customized content and enjoyable learning experiences," Sean Liu, the chief executive officer of Color Star, said in a statement today.
He added, "Our collaboration with Mixx Lifestyle marks a significant step in executing our offline expansion plan."
Despite the big gain, which was as high as $1.24 per share today, Color Star has not closed above $1 per share since Mar. 17. Earlier that month, it received a warning from Nasdaq that it was not in compliance with the stock exchanges minimum required $1 per share bid price. Shares of Color Star are down 45% year-to-date, as of midday.
Formally known as Huitao Technology Co., Ltd., Color Star provides online and offline education services. Through one of its wholly-owned subsidiaries Sunway Kids International Education Group Ltd., it provides early childhood education services to daycares and preschools in China. That includes AI and robotic technologies, intellectual campus administration software as a service system, and personalized education planning.
Earlier this month, Color Star completed its acquisition in Color China to make it all wholly-owned subsidiary of the company.
Right now, the New York site is under construction and plans on opening it by approximately the end of 2020, assuming Covid-19 is under control in the city. If so, the location will be used as a day time learning site for in-person lessons and a live music venue for artists and students during evenings.