HeartCore Announces the Sale of Go IPO Warrant for $9 Million
NEW YORK and TOKYO, March 04, 2024 (GLOBE NEWSWIRE) -- HeartCore Enterprises, Inc. (Nasdaq: HTCR) (“HeartCore” or the “Company”), a leading enterprise software and consulting services company based in Tokyo, announced that it has signed an agreement to sell a Go IPO client’s warrants to a Japanese financial institution, with the total contract value amounting to $9 million in cash.
As part of HeartCore’s Go IPO business, the Company services clients by assisting throughout the audit and legal firm hiring process, translating requested documents into English, assisting in the preparation of documentation for internal controls required for an initial public offering or de-SPAC, providing general support services, assisting in the preparation of the S-1 or F-1 filing, and more. As compensation for its services, HeartCore receives an initial cash amount as initial fees, followed by warrants for common stock.
By selling the warrants it received for one Go IPO client, HeartCore is set to realize the full $9 million payment in cash in the first quarter of 2024, significantly bolstering its cash reserves for the year ahead. This addition of capital strategically positions the company to pursue its M&A endeavors, with a keen focus on expanding its software business as well as driving global expansion initiatives. The Company intends to sell additional warrants as more Go IPO clients list on major U.S. exchanges, further enhancing its financial and market position.
“The sale of the Go IPO client warrants substantially increases our top line and enhances our cash position for 2024, fortifying our ability to pursue strategic opportunities that advance our enterprise software business and global expansion initiatives,” said HeartCore CEO Sumitaka Kanno Yamamoto. “With an amplified cash reserve, we are well-equipped to further evaluate and execute potential M&A ventures that improve our existing software offerings. As our previous acquisitions of Sigmaways and Sabatini Global’s sales team, alongside the recent establishment of HeartCore Luvina Vietnam continue to bear fruit, these M&A opportunities remain integral to our long-term global expansion initiatives. Furthermore, as we make headway with our existing Go IPO clients, we plan to capitalize on future opportunities by selling additional warrants upon their public listing on a U.S. exchange, strengthening our financial position for the year.”
About HeartCore Enterprises, Inc.
Headquartered in Tokyo, Japan, HeartCore Enterprises is a leading enterprise software and consulting services company. HeartCore offers Software as a Service (SaaS) solutions to enterprise customers in Japan and worldwide. The Company also provides data analytics services that allow enterprise businesses to create tailored web experiences for their clients through best-in-class design. HeartCore’s customer experience management platform (CXM Platform) includes marketing, sales, service and content management systems, as well as other tools and integrations, which enable companies to enhance the customer experience and drive engagement. HeartCore also operates a digital transformation business that provides customers with robotics process automation, process mining and task mining to accelerate the digital transformation of enterprises. HeartCore’s GO IPOSM consulting services helps Japanese-based companies go public in the U.S. Additional information about the Company's products and services is available at https://heartcore-enterprises.com/.
Forward-Looking Statements
All statements other than statements of historical facts included in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by words such as “believed,” “intend,” “expect,” “anticipate,” “plan,” “potential,” “continue,” or similar expressions. Such forward-looking statements include risks and uncertainties, and there are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors, risks, and uncertainties are discussed in HeartCore’s filings with the Securities and Exchange Commission. Investors should not place any undue reliance on forward-looking statements since they involve known and unknown, uncertainties and other factors which are, in some cases, beyond HeartCore’s control which could, and likely will materially affect actual results, and levels of activity, performance, or achievements. Any forward-looking statement reflects HeartCore’s current views with respect to future events and is subject to these and other risks, uncertainties, and assumptions relating to operations, results of operations, growth strategy, and liquidity. HeartCore assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The contents of any website referenced in this press release are not incorporated by reference herein.
HeartCore Investor Relations Contact:
Gateway Group, Inc.
Matt Glover and John Yi
HTCR@gateway-grp.com
(949) 574-3860
