HeartCore Enterprises announces financing agreements to support M&A strategy and ensure compliance with Nasdaq equity requirements.
Quiver AI Summary
HeartCore Enterprises, Inc. has announced a financing agreement with Crom Structured Opportunities Fund I, LP, aimed at enhancing its software growth initiatives. CEO Sumitaka Kanno emphasized the importance of mergers and acquisitions (M&A) in the company's strategy, targeting firms with strong recurring revenue and AI capabilities to create value for its customer base of over 1,000. The financing consists of a Securities Purchase Agreement for the potential issuance of Series A Convertible Preferred Stock and an Equity Purchase Agreement allowing HeartCore to sell up to $25 million in common stock over time. The proceeds will support M&A efforts and ensure compliance with Nasdaq's equity listing requirements.
Potential Positives
- This financing provides HeartCore with $2.0 million from the issuance of Preferred Stock, enhancing its financial flexibility to support growth initiatives.
- The ability to sell up to $25.0 million of common stock allows HeartCore to further strengthen its capital base for pursuing M&A opportunities.
- The company’s focus on acquiring firms with recurring revenue, complementary technologies, and strong AI capabilities indicates a strategic approach to enhance its competitive position in the market.
- Addressing the Nasdaq equity compliance requirement demonstrates HeartCore's commitment to maintaining its listing and supporting investor confidence.
Potential Negatives
- This financing indicates a reliance on external capital, which may signal financial instability or a lack of sufficient internal funds for growth initiatives.
- The mention of addressing Nasdaq's equity compliance requirement suggests that HeartCore may be struggling to meet listing requirements, which could jeopardize its status on the exchange.
- The forward-looking statements and associated risks highlight uncertainties in the company's future performance and strategy, which may concern investors.
FAQ
What is the purpose of HeartCore's recent financing?
The financing aims to provide flexibility for HeartCore's software growth initiatives and support its M&A strategy.
How much capital is HeartCore raising from Crom?
HeartCore is raising up to $27 million through the Securities and Equity Purchase Agreements with Crom.
What does HeartCore plan to do with the proceeds?
The proceeds will support M&A initiatives and address the Nasdaq Stock Market's equity compliance requirement.
What type of companies is HeartCore looking to acquire?
HeartCore targets companies with recurring revenue, complementary technologies, and strong AI capabilities for acquisition.
Where is HeartCore headquartered?
HeartCore is headquartered in Tokyo, Japan, with additional offices in New York and San Francisco, CA.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$HTCR Insider Trading Activity
$HTCR insiders have traded $HTCR stock on the open market 6 times in the past 6 months. Of those trades, 0 have been purchases and 6 have been sales.
Here’s a breakdown of recent trading of $HTCR stock by insiders over the last 6 months:
- DAISHIN YASUI has made 0 purchases and 6 sales selling 123,669 shares for an estimated $84,492.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$HTCR Hedge Fund Activity
We have seen 9 institutional investors add shares of $HTCR stock to their portfolio, and 7 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- CORSAIR CAPITAL MANAGEMENT, L.P. added 263,816 shares (+inf%) to their portfolio in Q4 2024, for an estimated $478,826
- CAMBRIDGE INVESTMENT RESEARCH ADVISORS, INC. added 157,179 shares (+inf%) to their portfolio in Q1 2025, for an estimated $117,884
- CREATIVEONE WEALTH, LLC added 141,843 shares (+330.6%) to their portfolio in Q1 2025, for an estimated $106,382
- PROSPERITY FINANCIAL GROUP, INC. removed 42,500 shares (-47.8%) from their portfolio in Q1 2025, for an estimated $31,875
- TWO SIGMA INVESTMENTS, LP removed 31,572 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $23,679
- RENAISSANCE TECHNOLOGIES LLC removed 25,400 shares (-25.0%) from their portfolio in Q1 2025, for an estimated $19,050
- XTX TOPCO LTD added 25,184 shares (+inf%) to their portfolio in Q1 2025, for an estimated $18,888
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
NEW YORK and TOKYO, July 01, 2025 (GLOBE NEWSWIRE) -- HeartCore Enterprises, Inc. (Nasdaq: HTCR) (“HeartCore” or the “Company”), a leading enterprise software and data consulting services company based in Tokyo, announced it has entered into a Securities Purchase Agreement and Equity Purchase Agreement with Crom Structured Opportunities Fund I, LP (“Crom”).
“This financing provides us with added flexibility to pursue our software growth initiatives,” said HeartCore CEO Sumitaka Kanno. “M&A remains central to our strategy as we target companies with recurring revenue, complementary technologies, and strong AI capabilities. By integrating these assets, we believe we can unlock meaningful value through cross-sell and upsell opportunities to our base of more than 1,000 software customers.”
Under the Securities Purchase Agreement, HeartCore may issue up to 2,000 shares of Series A Convertible Preferred Stock to Crom at $1,000 per share, for gross proceeds of $2.0 million, with each share having a stated value of $1,100.
Under the Equity Purchase Agreement, HeartCore has the right to sell up to $25.0 million of its common stock, listed on the Nasdaq Capital Market under the ticker “HTCR”, to Crom over time.
The Company plans to use the net proceeds to support its M&A strategy and to address the Nasdaq Stock Market’s equity compliance requirement under Listing Rule 5550(b), which mandates a minimum $2.5 million in stockholders’ equity for continued listing on the Nasdaq Capital Market.
For more information about the financing, please refer to the Current Report on Form 8-K filed by the Company with the U.S. Securities and Exchange Commission.
About HeartCore Enterprises, Inc.
Headquartered in Tokyo, Japan, with offices in New York and San Francisco, CA, HeartCore 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 IPO ℠ 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.
John Yi and Steven Shinmachi
[email protected]
(949) 574-3860