Earlyworks Co., Ltd. American Depositary Shares - ELWS STOCK NEWS

Earlyworks Co., (NASDAQ: ELWS) has signed a business alliance agreement with CAICA DIGITAL Inc. to provide comprehensive support for Web3 projects. This partnership aims to capitalize on the growing global blockchain market, expected to reach $404.1 billion by 2030. The alliance will focus on enhancing Earlyworks' Grid Ledger System (GLS) and supporting the development of new businesses adopting CAICA's Web3 solutions.

The collaboration comes as Japan's blockchain market share, estimated at 10% of the global market in 2023, seeks to expand. Despite government initiatives like the "Web 3.0 Study Group," business adoption of blockchain in Japan remains This alliance aims to address this gap and promote Web3 ventures in the country.

Earlyworks Co. (NASDAQ: ELWS), a Japanese blockchain technology company, announced that it has regained compliance with Nasdaq's minimum bid price requirement.

The company received a notification from Nasdaq confirming that its ADSs traded above $1.00 per ADS for 20 consecutive business days from May 16, 2024, to June 14, 2024.

Previously, Nasdaq had determined on May 1, 2024, that Earlyworks had failed to meet the requirement, scheduling its securities for delisting unless an appeal was made. Earlyworks appealed on May 7, 2024, and was granted an exception until May 31, 2024. After demonstrating compliance, Nasdaq decided to continue listing Earlyworks' ADSs.

Earlyworks (Nasdaq: ELWS) and ZenmuTech have announced a collaboration to enhance digital security using secret splitting and blockchain technology. Earlyworks' GLS technology offers high-speed, tamper-resistant blockchain solutions, while ZenmuTech's secret splitting technology provides advanced data protection. This partnership aims to create a secure digital environment by combining these technologies, ensuring faster processing speeds and robust data security. The collaboration seeks to support the growing market for blockchain technology, which is projected to reach $404.1 billion globally by 2030.

Earlyworks Co. (Nasdaq: ELWS) has formed a business alliance with Relic to promote new business development using Web3 technology. This partnership integrates Earlyworks' blockchain technology, Grid Ledger System (GLS), with Relic’s expertise in new business creation. The collaboration aims to address issues such as brand damage risks, legal and financial challenges, and the technical complexities of blockchain. The global blockchain market is projected to grow significantly, from $10.6 billion in 2023 to $404.1 billion by 2030. Japan's blockchain market is also growing, with government initiatives promoting Web3 adoption. Through this alliance, Earlyworks aims to leverage Web3 technologies to maximize blockchain's potential globally and enhance business development in Japan.

Earlyworks announced the completion of a change in the ratio of its American Depositary Shares (ADSs) to ordinary shares. Effective May 16, 2024, the new ratio is one ADS representing five ordinary shares, instead of one ADS representing one share. This change aims to enhance liquidity and help meet Nasdaq's minimum bid price requirement. On the effective date, ADS holders with certificated shares were required to surrender them for cancellation and received one new ADS for every five old ones. Uncertificated ADSs were automatically exchanged. The company's ADSs continue trading under the ticker 'ELWS,' and no fractional new ADSs were issued. Instead, fractional entitlements were aggregated and sold, with net proceeds distributed to ADS holders.

Earlyworks Co., (Nasdaq: ELWS) has announced a change in the ratio of its American Depository Shares (ADS) to ordinary shares, effective May 16, 2024. The ratio will shift from one ADS representing one ordinary share to one ADS representing five ordinary shares, effectively acting as a one-for-five reverse ADS split. This change aims to support liquidity and help the company regain compliance with Nasdaq's minimum bid price requirement. ADS holders will undergo automatic exchanges or will be required to surrender their certificated ADSs for new ones. The company expects the ADS trading price to increase proportionally but cannot guarantee it. Earlyworks has also appealed a Nasdaq delisting determination, with a hearing set for June 18, 2024.

Earlyworks Co., (Nasdaq: ELWS) received a delisting determination from Nasdaq due to failure to meet the minimum bid price requirement. The company plans to request a hearing before the Nasdaq Hearings Panel to appeal the decision.

Earlyworks Co., , a Japanese blockchain technology solutions provider, reported financial results for the six months ended October 31, 2023. Revenue increased by approximately JPY 22,738 thousand, gross profit increased by approximately JPY 39,631 thousand, and net loss decreased by approximately JPY 28,393 thousand compared to the same period in 2022. The company achieved its IPO and NASDAQ listing, developed its proprietary blockchain system GLS, collaborated with NTT DOCOMO, INC., updated its revenue model, and became a co-creation business partner for MetaMe®. Total revenue increased to JPY 54,944 thousand, with a significant increase in NFT sales revenue. However, revenue from software and system development services and consulting and solution services decreased. Cost of revenue decreased due to the absence of associated costs with NFT sales. Operating expenses increased mainly due to higher general and administrative expenses and selling and marketing expenses. Cash and cash equivalents were approximately JPY 701,385 thousand, and total shareholder's equity increased by approximately JPY 271,530 thousand compared to the same period in 2022.