Benzinga | Jan 4, 2021 07:27AM EST

AirNet Entered into Investment Agreement with Unistar Group Holdings Ltd; AirNet Will Issue ~2.5M Shares To Unistar In Exchange For 500 Computer Servers Specifically Designed For Mining Cryptocurrencies

AirNet Technology Inc., formerly known as AirMedia Group Inc. ("AirNet" or the "Company") (NASDAQ:ANTE), an in-flight solution provider on connectivity, entertainment, and digital multimedia in China, today announced that on December 30, 2020, it has entered into an investment agreement (the "Agreement") with Unistar Group Holdings Ltd. ("Unistar"), an unaffiliated party of the Company. Pursuant to the Agreement, the Company has agreed to issue 23,876,308 ordinary shares with a par value of US$0.001 per share (each a "Share"), or approximately 19 % of the Company's currently outstanding ordinary shares, to Unistar, in exchange for the delivery and transfer by Unistar to the Company of 500 computer servers specifically designed for mining cryptocurrencies. The computer servers were valued at US$ 2,530,888.61, representing a per Share consideration of US$0.106, or US$1.06 per American depositary share of the Company (each representing ten Shares). The per ADS consideration represents a 20% discount to the average closing price of the Company's ADSs over the 20-trading day period ended on December 29, 2020, the last trading day prior to the date when the Agreement was signed.

Mr. Herman Guo, the Chairman and CEO of the Company, commented "The Company has recognized the needs to store and analyze data generated from the inflight connectivity business and the boom of the power of the blockchain technology as applied to the Company's use cases. With the acquisition of 500 computer servers specifically designed for mining cryptocurrencies, the Agreement epitomizes the Company's determination to create values for its investors along with its drive for technological innovations, which sets the Company on a relentless search for new venues to expand and broaden the Company's ability to provide blockchain empowered solutions to its existing and potential clients. After careful evaluation of this opportunity, the Company is convinced that it is the right time to take another leap in technological innovation and form a new line of business embracing the mining of cryptocurrencies and future applications derived upon cryptocurrencies."