NEW YORK, Dec. 03, 2024 (GLOBE NEWSWIRE) -- AB International Group Corp. (OTC: ABQQ), an intellectual property (IP) and movie investment and licensing firm, today announced the Company entered into Repurchase Agreements with four shareholders, all non-affiliates of the Company, pursuant to which the Company agreed to repurchase shares of their Common Stock, $0.001 par value, amounting to 300,000,000 shares for cancellation. The price to be paid by the Company under the Repurchase Agreements is $390,000, which will be funded with cash on hand.
ABQQ today announced its intention to spin off its Non-Fungible Token (NFT) MMM IP and Artificial Intelligence (AI) Consulting division into a separate entity, with plans for this new company to go public. This strategic move aims to unlock shareholder value by allowing each business unit to pursue its own growth strategies independently while capitalizing on the burgeoning markets for NFTs and AI technologies.
Details of the Spin-off:
- Entity Name: The new entity, tentatively named AB Digital Innovations, will focus exclusively on the development and commercialization of NFT marketplaces, AI consulting services, and related intellectual properties.
- Business Model: AB Digital Innovations will leverage ABQQ's existing infrastructure in the NFT IP space, including the NFT Movie and Music Marketplace (NFT MMM), and expand into broader AI consulting services aimed at enhancing film production, distribution, and consumer engagement through AI technologies.
- Strategic Rationale: The spin-off is designed to provide clearer market focus, potentially attract specialized investment, and offer investors a pure-play opportunity in the rapidly evolving sectors of digital assets and AI.
- Public Offering: Details regarding the timing and terms of the initial public offering (IPO) for AB Digital Innovations will be communicated in due course. The company is currently preparing the necessary documentation and regulatory compliance activities for listing.
Benefits for Existing ABQQ Shareholders:
1. Value Unlocking:
- The spin-off, bolstered by significant external investment, is expected to more clearly delineate the value of each business segment, potentially leading to increased market valuation for shareholders.
2. Investment Opportunity:
- Shareholders will receive shares in AB Digital Innovations, providing them not only with a stake in a new high-growth area but also the benefits from a substantial investment in the company.
3. Higher Potential Returns:
- The investment and spin-off could lead to higher returns for shareholders as both entities can now pursue more aggressive growth strategies tailored to their niche markets.
4. Increased Market Attention:
- The significant investment underscores the market's confidence in the potential of AB Digital Innovations, likely drawing additional interest from investors, which could enhance stock liquidity and market visibility.
Chiyuan Deng, CEO of AB International Group Corp., stated, "This spin-off is a testament to our commitment to innovation and growth. By separating our NFT and AI initiatives, we believe we can better tailor our strategies to meet the unique demands of these markets, thereby enhancing value for our stakeholders."
Charles Tang, Investor Relations, added, "We are excited about the potential this separation offers. It allows us to directly tap into the investor interest in NFTs and AI, sectors that are seeing unprecedented growth and investor enthusiasm."
About AB International Group Corp.
AB International Group Corp. is an intellectual property (IP) and movie investment and licensing firm, focused on acquisitions and development of various intellectual property. We are engaged in acquisition and distribution of movies. The company owns the IP of the NFT movie and music marketplace (NFT MMM) as the unique entertainment industry Non-Fungible Token. The Company operates AB Cinemas, physical movie theaters currently in NY with plans to expand nationwide (www.abcinemasny.com). The company also owns ABQQ.TV which is a movie and TV show online streaming platform. ABQQ TV generates revenue through a hybrid subscription model and advertising model like other online streaming platforms.
This press release contains “forward-looking statements” that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements relating to changes to the Company’s management team and statements relating to the Company’s transformation, financial and operational performance including the acceleration of revenue and margins, and the Company’s overall strategy. Because forward-looking statements inherently involve risks and uncertainties, actual future results may differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, the possibility of business disruption, competitive uncertainties, and general economic and business conditions in AB International Group markets as well as the other risks detailed in company filings with the Securities and Exchange Commission. AB International Group undertakes no obligation to update any statements in this press release for changes that happen after the date of this release.
