- The company had signed a deal with Alliance Global Partners to sell shares worth up to $100 million last October.
- Paranovus has been under pressure to remain compliant with Nasdaq’s listing requirements, prompting the company to implement a reverse share split last December.
- The stock fell below $1 on March 17 and has traded below that level since.
Paranovus Entertainment Technology (PAVS) grabbed investor attention in pre-market trading on Tuesday, with shares soaring nearly 65% after the AI-driven entertainment company scrapped its share sale agreement with Alliance Global Partners. This move has removed what many retail investors saw as a dilution overhang on the stock.
According to an SEC filing on Monday, the company notified Alliance Global Partners that it was ending the agreement, along with all related arrangements. As of the filing date, the company had sold around 5.9 million Class A ordinary shares under the deal, adjusted for the 1-for-100 reverse stock split completed in December 2025.
On Oct. 28, 2025, Paranovus entered into a sales agreement with Alliance Global Partners to raise capital by selling its Class A ordinary shares. The deal allowed the company to sell up to $100 million worth of shares over time through “at-the-market” offerings. The stock declined more than 11% after the announcement.
How Did Stocktwits Users React?
Following the termination of the share sale agreement, retail sentiment for PAVS on Stocktwits flipped to ‘extremely bullish’ from ‘bearish,’ accompanied by ‘extremely high’ message volumes.
Chatter was largely bullish, with one user expecting the stock price to double and potentially break past $1.05. The stock is currently trading close to $0.5.
Another user said that since there is no ‘active overhang,’ the stock is free to rally.
One user stated that traders are “likely reading this as the shutdown of a key dilution route.”
Paranovus Faces Compliance Challenge
In December, Paranovus faced a potential delisting from the Nasdaq after failing to meet minimum bid price requirements. The company had traded below $1 for an extended period and later fell to $0.10, triggering the regulatory action. Nasdaq warned that trading could be suspended by late December 2025 unless the company appealed.
To address the issue, Paranovus implemented a 1-for-100 reverse stock split to boost its share price to $1. The move helped the company regain compliance with Nasdaq listing rules by early January 2026. However, the stock fell below $1 on March 17 and has traded below that level since.
For updates and corrections, email newsroom[at]stocktwits[dot]com.