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Prestige Wealth Inc., a Hong Kong-based financial services company with a market capitalization of $11.55 million, has entered into a significant agreement to advance its technological capabilities. According to InvestingPro analysis, the company currently shows weak financial health metrics, making this technological investment particularly crucial. On April 25, 2025, the company signed a Project Outsourcing Agreement with InnoSphere Tech Inc., its wholly-owned subsidiary, and unnamed service providers.
Under the terms of the agreement, the service providers will construct the MGAI Privatization Large Model System for InnoSphere Tech. In exchange for their services, Prestige Wealth Inc. will issue 10 million new restricted shares of its Class A ordinary shares at $0.265 per share, a significant discount to its current trading price of $0.43. These shares will be granted to the service providers, or their assignees, and hold a par value of $0.000625 each. The company’s revenue showed strong growth of 83.6% in the last twelve months, despite reporting negative EBITDA of $5.7 million.
The shares are being issued in a private transaction, relying on an exemption from the registration requirements of the Securities Act of 1933. This exemption falls under Section 4(a)(2) of the Act and/or Regulation S, which allows for the sale of securities without a formal registration statement, typically in transactions not involving a public offering.
The deal’s specifics are outlined in the Form of Project Outsourcing Agreement, which is attached as Exhibit 99.1 to the company’s filing. This document provides the full text and context of the agreement, which is now part of the public record due to the filing.
This strategic move by Prestige Wealth Inc. is part of a broader trend of financial services firms leveraging technology to enhance their operations. The MGAI Privatization Large Model System is expected to be a significant asset for InnoSphere Tech, contributing to the company’s service offerings. InvestingPro subscribers can access 8 additional key insights about Prestige Wealth’s financial health and growth prospects, along with detailed valuation metrics and peer comparison tools.
Investors may view this development as a potential indicator of Prestige Wealth Inc.’s direction and priorities, particularly regarding its investment in technology and innovation within the financial sector. The transaction also underscores the company’s use of equity to fund its strategic initiatives.
This news is based on a press release statement and provides a factual account of Prestige Wealth Inc.’s recent business activities as reported to the Securities and Exchange Commission.
In other recent news, Prestige Wealth Inc. has announced plans to hold a general meeting for Class B ordinary shareholders on March 27, 2025, followed by an extraordinary general meeting for all shareholders. The meetings aim to address undisclosed matters pertinent to the company’s shareholders. Proxy statements and proxy cards have been released in accordance with SEC regulations to prepare for these meetings. These documents are crucial for shareholders, as they outline the matters to be discussed and allow shareholders to appoint a proxy to vote on their behalf if they cannot attend. The specific agenda items for the meetings have not been disclosed, but such meetings typically cover corporate governance issues, financial strategies, and other significant decisions requiring shareholder approval. Shareholders are encouraged to review the proxy statements for detailed information. This announcement is based on a press release and SEC filing.
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