PAVS · Paranovus Entertainment Technology Ltd.

The company is seeking shareholder approval for fundamental changes to its capital structure through three interconnected proposals. The capital increase would dramatically expand the authorized share base, creating nearly 50 billion additional Class A shares and 96 million additional Class B shares, providing flexibility for future equity needs. The accompanying memorandum and articles amendment would formalize these changes in the company's governing documents. Most notably, the reverse share split authorization gives the board discretion to implement consolidations at ratios up to 1:5,000 within two years, potentially addressing share price concerns while maintaining the newly expanded authorized share pool. The voting structure gives Class B shares disproportionate influence with 80 votes per share versus one vote for Class A shares, which could significantly impact the outcome. Shareholders who return proxy cards without voting instructions will have their shares voted in favor of all proposals by default, potentially increasing the likelihood of approval.