Color Star Technology Co. Ltd. (NASDAQ: CSCW) rose 8% on Thursday and 14% in a week. The company has announced that it will acquire a 51% stake in Hainan Netgod Cyber Café Network Co. Ltd (HNCCN). Headquartered in Haikou, HNCCN is Hainan’s first internet cafe brand to offer five-star services.
After acquiring HNCCN, Color Star expects to incorporate its high-tech and interactive experiences into esports competitions, international internet cafes and other services around the world. In addition, HNCCN is a specialist in Internet access services, eSport hotel operations and eSport implementation. For the past several years, HNCCN has maintained its status as Hainan’s most stylish sports stadium and has focused on achieving the goal of being a “Hainan’s Benchmark Esports Stadium”.
Basil Wilson, CEO of Color Star, said HNCCN is rated highly in the industry following exceptional results in its current businesses. He added that the acquisition of the 51% stake will allow Color Star to own a leading internet cafe business. Therefore, CSCW is worth seeing in the coming weeks.
On Thursday, CSCW stock was up 8% at $ 1.08, holding more than 839,000 shares, compared to an average volume of 2.28 million shares. The stock has moved within a range of $ 1,0009 – $ 1,0800 after opening trading at $ 1.04.