Maison Solutions to invest up to $70 million in Worldcoin for treasury

MONTEREY PARK, California - Specialty grocery retailer Maison Solutions Inc. (NASDAQ:MSS), currently valued at $18.8 million and showing impressive revenue growth of 70% over the last twelve months, announced Monday it has entered into a Securities Purchase Agreement with a U.S.-based institutional investor for a private placement of up to $70 million in convertible notes to establish a digital asset treasury comprised of Worldcoin (WLD).

Worldcoin is the native token of World Network, a project co-founded by OpenAI CEO Sam Altman that combines digital identity verification through its "Orb" devices with a globally distributed digital currency.

According to the company’s statement, Maison Solutions plans to explore several blockchain initiatives using WLD, including facilitating global payments with international suppliers, creating financial access for underbanked customers, developing identity-verified loyalty programs, and implementing human-authenticated customer engagement systems. InvestingPro data shows the company faces some financial challenges, with a current ratio of 0.58 indicating potential liquidity constraints that these initiatives might help address.

"By integrating Worldcoin into our digital asset treasury, we’re going beyond diversifying our balance sheet but also exploring blockchain’s potential to enable proof-of-human identity and a global currency," said John Xu, Chief Executive Officer of Maison Solutions, in the press release.

The company indicated it may explore joining the World Network and potentially deploying Orb verification devices at select grocery store locations, though it has not yet applied to join the network or been approved to deploy the devices. With an overall Financial Health Score rated as FAIR by InvestingPro, which offers 6 additional key insights about MSS’s financial position, investors should closely monitor these strategic initiatives.

Maison Solutions, which operates Asian specialty grocery stores under the HK Good Fortune brand in Los Angeles and Lee Lee International Supermarket in Arizona, noted that all blockchain initiatives involving WLD will be subject to applicable laws and regulations.

Further details of the agreement will be available in the company’s Current Report on Form 8-K to be filed with the Securities and Exchange Commission, according to the press release.

In other recent news, Maison Solutions Inc. has restated its financial statements for several periods due to an accounting error related to an acquisition. The affected periods include those ending on April 30, July 31, and October 31, 2024, as well as January 31, 2025. This decision was made following discussions between the company’s Audit Committee, management, and independent auditor Kreit & Chiu CPA LLP. Additionally, Maison Solutions received a notice from The Nasdaq Stock Market LLC regarding a minimum bid price deficiency, as its stock has closed below the $1.00 per share requirement for 30 consecutive business days. The company has until January 6, 2026, to regain compliance. In other developments, Ascendiant Capital initiated coverage on Maison Solutions with a Buy rating and a $4.00 price target. The company also announced executive pay increases, with CEO John Xu’s salary set to rise to $180,000 and CFO Alexandria Lopez’s salary increasing to $120,000, effective January 25, 2025. These developments highlight significant activities surrounding Maison Solutions in recent times.

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