Benzinga | Feb 23, 2021 11:51AM EST

Color Star Raises $26M At Premium To Enhance AI, AR, MR Technologies

* Color Star Technology Co., Ltd. (NASDAQ: CSCW) raised $26 million by pricing 20 million shares at $1.30 per share in a private placement.

* The offer price signifies a 42.9% premium to Monday's closing price of $0.91.

* The proceeds will be utilized for the development of Artificial Intelligence (AI), Augmented Reality (AR), and Mixed Reality (MR) technologies to create virtual communities for the company's software application.

* Color Star APP has already acquired a registered user base of over 1 million and growing since its September launch.

* It has collaborated with Silicon Valley software engineers and a Chinese technology R&D company to create AI with blockchain technology, focusing on the development and application of 3D virtual reality (VR) technology to online concerts.

* The company intends to transform the online concert experience to that comparable to watching it in-person.

* It has also invested heavily in MR, which is an extension of VR and AR. The creation of MR scenes offers a similar experience to being at a live concert and allows real-time on-site seat selection.

* The company will launch a more futuristic naked-eye 3D vision technology to nearly imitate live scenes' experiences.

* It plans to develop a wireless Bluetooth headset technology for real-time, high-quality, surround-sound.

* Price action: CSCW shares are up 8.8% at $0.99 on the last check Tuesday.