PAVS · Paranovus Entertainment Technology Ltd.

Paranovus Entertainment Technology Ltd. has entered into a material definitive agreement by issuing a $1 million convertible promissory note to Knox Golf Academy, Inc. The note is structured in two equal tranches of $500,000, with the first due upon execution and the second within 30 days. The 10% annual interest rate and 12-month maturity are standard for a private debt instrument. The conversion feature is unique: the conversion percentage is determined by dividing the principal amount by the renovation costs of Knox's golf course, capped at $10 million. This ties the equity stake to the actual capital invested in the property, providing Paranovus with a potential upside if the renovation costs are low relative to the loan. Additionally, Paranovus gains board representation and extensive information rights, including access to renovation-related documents. The security package is comprehensive, covering all assets and a 100% equity pledge, with personal guarantees from controlling shareholders. This transaction provides Knox with working capital while giving Paranovus significant control and downside protection. The filing is a Form 6-K, so no 8-K item codes apply.