Datasea Secures $4 Million in Private Offering, Boosting AI and Acoustic Tech Initiatives

Datasea Closes $4 Million Private Offering

Datasea Inc. (NASDAQ: DTSS), a Nevada-based digital technology company, has announced the successful closing of a $4 million private offering as of October 15, 2024. The company, which focuses on innovative high-tech acoustics and 5G AI multimodal digital technology, sold an aggregate of 1,932,224 shares of its common stock to three investors, including its two largest shareholders - the company's CEO and Director 1

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Key Details of the Offering

The shares were priced at $2.06 per share, matching the closing price of Datasea's common stock on The Nasdaq Capital Market on September 26, 2024, when the binding subscription agreements were signed. The investors have committed to a lock-up period of at least 180 days for the newly acquired shares 1

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Management Participation and Confidence

Notably, two members of Datasea's management team, who are also major shareholders, participated in the offering. This involvement reflects strong confidence in the company's future development and has been highlighted as a positive signal to the market 1

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Allocation of Funds

The approximately $4 million raised will be primarily used to support Datasea's future business operations. Specific areas of investment include:

1. Acoustic high-tech related products design upgrade
2. Working capital for mass production and online sales
3. Acquisition of intellectual property
4. Promotion and sales of 5G AI multimodal digital business products 1

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Company Overview and Recent Developments

Datasea positions itself as a leading provider of products, services, and solutions in two innovative industries: acoustic high tech and 5G-AI multimodal digitalization. The company's business model leverages advanced R&D technology as the core infrastructure for its products 1

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Key aspects of Datasea's operations include:

• A 5G multimodal communication segment operating on an AI-based cloud platform
• Utilization of cutting-edge technologies in acoustics, including ultrasonic, infrasound, and directional sound technology
• Applications in combating viruses, preventing human infections, and developing medical ultrasonic cosmetology 1

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In July 2023, Datasea established a wholly-owned subsidiary, Datasea Acoustics LLC, in Delaware, marking a strategic move to enter the U.S. markets and initiate its global expansion plan 1

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Management's Perspective

Ms. Zhixin Liu, CEO of Datasea, expressed satisfaction with the support from major shareholders, stating, "We are pleased to receive support from our major shareholders, which not only enhances market confidence in our development but will also help us accelerate the achievement of our strategic goals" 1

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Forward-Looking Statements and Risks

The company's press release includes cautionary notes regarding forward-looking statements, acknowledging the presence of known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from anticipated outcomes. Datasea directs interested parties to its SEC filings for further information on potential risks and uncertainties 1

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