HeartCore’s Go IPO Client, BloomZ, Begins Trading on the Nasdaq Stock Exchange

Rhea-AI Summary

HeartCore Enterprises, Inc. (Nasdaq: HTCR) announced that its Go IPO client, BloomZ Inc., has successfully begun trading on the Nasdaq Capital Market under the symbol BLMZ. HeartCore, a Tokyo-based enterprise software and consulting services company, received $500,000 in initial fees and warrants to acquire 4% of BloomZ's common stock, valued at up to $2.08 million. The company assisted BloomZ throughout the listing process, including audit and legal firm hiring, document translation, and F-1 filing preparation.

CEO Sumitaka Kanno Yamamoto highlighted that BloomZ's IPO is the first from Japan since September 2023, potentially signaling a new wave of Japanese IPOs. HeartCore's Financial team remains focused on providing value to Japanese issuers seeking access to U.S. capital markets.

Positive

• HeartCore received $500,000 in initial fees for its Go IPO services
• HeartCore acquired warrants for 4% of BloomZ's common stock, valued at up to $2.08 million
• BloomZ's successful IPO may lead to more Japanese companies seeking HeartCore's Go IPO services

Negative

• None.

Insights

Financial Analyst

HeartCore Enterprises' announcement of BloomZ's successful IPO on Nasdaq represents a significant milestone for both companies. The deal structure, involving $500,000 in initial fees and warrants for 4% of BloomZ's common stock (valued at up to $2.08 million), demonstrates a potentially lucrative arrangement for HeartCore. This success could bolster HeartCore's reputation in the Go IPO service sector, potentially attracting more clients and revenue streams.

The IPO's timing is particularly noteworthy, being the first from Japan since September 2023. This could signal a resurgence in Japanese companies seeking U.S. listings, which may translate to increased demand for HeartCore's services. The mention of an optimistic backlog for incremental Go IPO deals suggests potential for sustained growth in this business segment.

However, investors should note that the success of HeartCore's Go IPO business is tied to market conditions and regulatory environments in both Japan and the U.S. Any changes in these factors could impact the company's future performance in this area. Additionally, the value of the warrants is subject to BloomZ's stock performance, introducing an element of market risk to HeartCore's compensation package.

Market Research Analyst

BloomZ's successful listing on Nasdaq, facilitated by HeartCore, is a significant development in the context of cross-border IPOs. This event could potentially reignite interest in U.S. listings among Japanese companies, which had seen a lull since September 2023. The successful IPO might serve as a confidence booster for other Japanese firms contemplating similar moves, potentially leading to a 'second wave' of Japanese IPOs on U.S. exchanges.

This trend, if it materializes, could have broader implications for both the U.S. and Japanese markets. For U.S. investors, it could mean increased access to Japanese growth companies. For Japanese firms, it represents an opportunity to tap into the deeper, more liquid U.S. capital markets. However, it's important to consider that this trend will depend on various factors, including regulatory environments, market conditions and geopolitical relations between the two countries.

HeartCore's role in this process positions it as a key player in facilitating these cross-border listings. The company's comprehensive services, from audit and legal firm hiring to document translation and F-1 filing preparation, demonstrate the complexity of such transactions and the value-add HeartCore provides. This could potentially create a moat for HeartCore in this niche market, assuming they can maintain their expertise and success rate.

NEW YORK and TOKYO, July 25, 2024 (GLOBE NEWSWIRE) -- HeartCore Enterprises, Inc. (Nasdaq: HTCR) (“HeartCore” or “the Company”), a leading enterprise software and consulting services company based in Tokyo, announced its Go IPO client, BloomZ Inc. (“BloomZ”), has successfully commenced trading under the symbol “BLMZ” on the Nasdaq Capital Market exchange. HeartCore was compensated through an aggregate $500,000 in initial fees and warrants to acquire 4% of BloomZ’s common stock, on a fully diluted basis, which total up to $2.08 million.

Pursuant to the initial agreement, the Company assisted BloomZ throughout the listing process, including the audit and legal firm hiring process, translating requested documents into English, assisting in the preparation of documentation for internal controls required for an initial public offering, providing general support services, assisting in the preparation of the F-1 filing, and more.

“I am pleased to announce that our Go IPO client, BloomZ, has successfully begun trading on the Nasdaq Capital Market,” said CEO Sumitaka Kanno Yamamoto. “BloomZ’s IPO is the first from Japan since September 2023, marking the conclusion of a minor drought and a pivotal milestone for our client. We are hopeful this event marks the genesis of a second wave of Japanese IPOs as the backlog for incremental Go IPO deals look optimistic. Our HeartCore Financial team remains laser focused and hard at work in providing utmost value to Japanese issuers looking to tap into the U.S. capital markets.”

About HeartCore Enterprises, Inc.
Headquartered in Tokyo, Japan, HeartCore Enterprises 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 IPOSM 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.
Matt Glover and John Yi
HTCR@gateway-grp.com
(949) 574-3860

FAQ

What is the stock symbol for HeartCore Enterprises?

HeartCore Enterprises trades on the Nasdaq under the stock symbol HTCR.

How much did HeartCore earn from BloomZ's IPO?

HeartCore received $500,000 in initial fees and warrants to acquire 4% of BloomZ's common stock, valued at up to $2.08 million.

What services did HeartCore provide for BloomZ's IPO?

HeartCore assisted BloomZ with the audit and legal firm hiring process, document translation, preparation of internal control documentation, general support services, and F-1 filing preparation.

When was the last Japanese IPO on the Nasdaq before BloomZ?

According to the press release, the last Japanese IPO on the Nasdaq was in September 2023, before BloomZ's listing in July 2024.