TSX runs higher on rate cut expectations
BEIJING - CIMG Inc. (NASDAQ:IMG), a micro-cap company with a market value of $9.06 million and trading near $0.25 per share, has signed a non-binding Memorandum of Understanding with FLock Technology Holdings to develop an AI-assisted wellness monitoring and recommendation product called LifeNode, according to a press release statement issued Tuesday. According to InvestingPro data, the company’s stock has declined over 84% in the past year, reflecting significant investor concerns.
The agreement would make FLock CIMG’s privacy-preserving AI solution provider for the LifeNode product. The MoU also includes a potential acquisition of FLOCK tokens as a treasury reserve asset for CIMG. This strategic move comes as InvestingPro analysis shows CIMG facing financial challenges, with negative EBITDA of $10.02 million and rapidly diminishing cash reserves.
FLock operates a decentralized AI training platform that combines federated learning and blockchain technology, allowing for AI model development without centralizing user data.
"Our partnership with CIMG marks a strategic step forward in expanding our privacy-preserving AI capabilities from clinical and institutional healthcare into the consumer health and wellness space," said Jiahao Sun, Chief Executive Officer of FLock.
CIMG’s Chairwoman and CEO Jianshang Wang stated that LifeNode would provide customers with "tailored AI-assisted wellness recommendations using privacy-preserving AI and blockchain technologies."
The company is also evaluating the acquisition of FLOCK tokens, noting "significant growth potential in the digital asset and cryptocurrency sector."
CIMG, which describes itself as a global business group specializing in digital health and sales development, emphasized that the MoU is non-binding and subject to the parties entering into a definitive agreement.
The company’s brands include Kangduoyuan, Maca-Noni, Qianmao, Huomao, and Coco-mango.
In other recent news, CIMG Inc. has received an additional delisting notice from The Nasdaq Stock Market. The company was informed that it remains non-compliant with the minimum bid price requirement under Nasdaq’s Listing Rule 5550(a)(2). This follows a previous notification from Nasdaq on January 14, which indicated that CIMG Inc.’s common stock had closed below $1.00 per share for 30 consecutive business days. The company was initially given 180 calendar days, until July 14, to regain compliance but has not met the requirement. Consequently, CIMG Inc. is not eligible for a second 180-day extension due to its failure to meet the initial listing criteria for The Nasdaq Capital Market. A hearing is set for August to address the delisting issue. These developments are crucial for investors to monitor, as they could impact the company’s future trading status on the Nasdaq exchange.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.