Connexa Sports Technologies Inc. (NASD: CNXA), which just entered into a big deal, had its share price rise 23.15% to $0.20 in after-hours trading on Friday.
Which contract has CNXA signed?
Connexa Sports (CNXA) disclosed in its most recent filing with the Securities and Exchange Commission (SEC) that it engaged in a share purchase agreement (the “Agreement”) on November 27, 2022. PlaySight Interactive Ltd., Chen Shachar, Evgeni Khazanov (collectively, the “Buyer”), and CNXA signed into an agreement. In accordance with the Agreement, the Buyer acquired Connexa Sports’ entire holding in PlaySight’s issued and outstanding shares in return for CNXA’s release from all of PlaySight’s obligations to its suppliers, workers, tax authorities, and any other (past, present, and future) creditors.
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The Buyer also agreed to forego $2 million in cash consideration to be paid to the Company in the form of a promissory note with an initial due date of December 31, 2023, and 100% of the personal consideration owed to the Buyer’s employees under their employment agreements, totaling US$600,000 (which would have increased to US$800,000 in December 2022).
Additionally, the Buyer has freed CNXA from all of its responsibilities with regard to PlaySight and the Buyer, and Connexa Sports has released PlaySight from all of its obligations with regard to the Company, including any inter-company debts recorded on the books.
Additionally, Connexa Sports and the Buyer have consented to use their best efforts to conclude a non-exclusive, legally binding contract within three (3) months of the Agreement’s date that will allow CNXA to end up receiving individual and match metrics for racquet sports (such as, but just not limited to, tennis, padel, and pickleball) at no cost to the Company up front and in exchange for payments to be made by the Company’s clients and users of the analytics.
How will this affect CNXA?
Connexa Sports (CNXA) is not required to continue funding PlaySight’s activities as a result of the Agreement’s entry and the transactions covered thereby. The responsibilities that CNXA took on in connection with the merger agreement of October 6, 2021, as revised by the addendum and amendment to the agreement for the merger of February 16, 2022, are unaffected by the sale of PlaySight to the Buyer and are still in full force and effect.