Paranovus Entertainment Technology Ltd. (NASDAQ: PAVS) shares exhibit a pre-market descent as the trading day commences this Friday. In the latest premarket evaluation, Paranovus stock has declined by 8.42% to $2.50. Notably, the correction appears to be a response to the preceding session’s noteworthy ascent, wherein PAVS stock experienced a substantial 28.77% surge, reaching $2.73. This surge was catalyzed by the formalization of a software development agreement.
Paranovus (PAVS) has formally entered into a collaborative software development agreement with BlueLine Studios Inc., an entity under the portfolio of Caravan Digital L.P. Caravan Digital L.P. is a co-founder of consumer ventures authentically steered by renowned artists and athletes in partnership with Creative Artists Agency (“CAA”). The agreement delineates PAVS’ focus on the creation of the AI-generated content (AIGC) gaming application titled “Hollywood Sunshine.”
According to the stipulations of the agreement, BlueLine assumes the commitment of spearheading the development of the “Hollywood Sunshine” project. This endeavor is envisioned as an innovative social gaming platform characterized by celebrity participation and propelled by AIGC. The project aims to materialize as an immersive, narrative-driven role-playing game (RPG) set in an expansive open world, accessible on both PC and/or mobile platforms.
It endeavors to captivate users through real-time, personalized content generation, providing extensive hours of gameplay driven by the narrative. Collaboratively, BlueLine and Caravan are diligently working to secure an appropriate celebrity partner for the game, one who exhibits enthusiasm for collaborating with AIGC and possesses a fanbase outreach exceeding 5 million individuals.
In consideration for their collaborative efforts, Paranovus commits to remunerate BlueLine with a total development fee of up to $1,900,000. As delineated in the agreement’s terms, Paranovus assumes sole and exclusive ownership of all rights associated with the Hollywood Sunshine project, encompassing intellectual property rights, excluding any background technology employed by BlueLine in project completion.
The anticipated timeline envisions the release of an initial, fully-featured PC version of the game in Q2 2024, with the potential delivery of the iOS version in Q3 2024. Meanwhile, PAVS is actively assessing the previously disclosed letter of intent to acquire BlueLine. The decision to prioritize the Hollywood Sunshine development project aligns with Paranovus’ long-term strategic vision and current corporate objectives.