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NEW YORK/TOKYO - HeartCore Enterprises, Inc. (Nasdaq:HTCR) has signed an agreement with Cipher Core Co., Ltd. for its 16th Go IPO consulting service contract, according to a press release statement issued Wednesday. The announcement comes as HeartCore’s stock trades near $0.42, down over 85% in the past six months, though InvestingPro analysis suggests the stock is currently undervalued.
Under the terms of the agreement, Cipher Core will pay HeartCore $500,000 in fees and issue a warrant to acquire 3% of Cipher Core’s capital stock on a fully diluted basis. If the initial 12-month contract extends, HeartCore will receive hourly compensation for its consulting services.
HeartCore, a Tokyo-based enterprise software and IPO consulting services company, will assist Cipher Core in its efforts to go public and list on the Nasdaq Stock Market. The Go IPO service includes helping with the selection of underwriters, auditors, and legal firms, document translation, preparation of internal controls documentation, accounting conversion from Japanese standards to U.S. GAAP, and support for S-1 or F-1 filing preparation.
"Our second Go IPO contract for the year reflects the continued interest among Japanese growth companies in pursuing a U.S. listing amid a challenging IPO market," said HeartCore CEO Sumitaka Kanno.
Cipher Core is described as an information security technology company focused on encryption technology in the age of AI and quantum computing. The company has developed proprietary encryption technology called Complete Cipher, which it positions as a solution to address next-generation information security threats.
HeartCore offers Software as a Service solutions to enterprise customers in Japan and worldwide, along with data analytics services and a customer experience management platform. The company also operates a digital transformation business providing robotics process automation and process mining services. Recent financial data from InvestingPro shows the company achieved impressive revenue growth of 59% in the last twelve months, though analysts anticipate a sales decline in the current year. With a gross profit margin of 58% and moderate debt levels, HeartCore maintains operational efficiency despite challenging market conditions.Want deeper insights? InvestingPro subscribers have access to over 10 additional exclusive ProTips and comprehensive financial metrics for HeartCore Enterprises.
In other recent news, HeartCore Enterprises, Inc. has announced a new partnership with tmsuk Co. Ltd., under which HeartCore will provide its Go IPO consulting services to assist tmsuk in its efforts to list on the Nasdaq Stock Market. As part of this agreement, HeartCore will receive $500,000 in fees and a warrant to acquire a 3% stake in tmsuk, contingent upon shareholder approval. This marks HeartCore’s 15th Go IPO service win, showcasing its continued traction in the IPO consulting space despite market uncertainties. Additionally, HeartCore has formed a strategic partnership with NEC Solutions Innovators, Ltd., aiming to integrate HeartCore’s content management system platform with NEC’s system integration technology. This collaboration is designed to enhance digital transformation efforts and meet the growing demand for dynamic CMS solutions. HeartCore’s CEO emphasized the importance of this partnership in maintaining market leadership and expanding reach across various industries. These developments reflect HeartCore’s ongoing commitment to driving digital transformation and supporting companies in their public listing endeavors.
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