Connexa Sports Technologies Inc. (NasdaqCM:CNXA) has signed a share purchase agreement and share agreement to acquire 70% stake in Yuanyu Enterprise Management Co., Limited from Mr. Hongyu Zhou for $59.55 million on March 18, 2024. Pursuant to the Share Purchase Agreement, Connexa has agreed to purchase, and the Seller has agreed to sell, 0.002 million shares of Yuanyu Enterprise Management Co., Limited representing 20% of the issued and outstanding ordinary shares of YYEM, for the purchase price of $16.5 million payable in cash. The Share Purchase Transaction closed on March 20, 2024.

Pursuant to the Share Exchange Agreement, the Connexa has agreed to purchase, and the Seller has agreed to sell,0.005 million shares of Yuanyu Enterprise Management Co., Limited representing 50% of the issued and outstanding ordinary shares of Yuanyu Enterprise Management Co., Limited for 162.55 million newly issued shares of Common Stock to Mr. Hongyu Zhou. Connexa Sports Technologies Inc will own 82.4% shares after closing of both the agreements. The Share Exchange Agreement is subject to approval of shareholders of Connexa.

The Connexa has to pay maximum upto 0.6 million if it terminates share exchange agreement. The Share exchange agreement is expected to be closed within two weeks of closing of Share Purchase Agreement.