HeartCore Signs Tenth Go IPO Contract

Rhea-AI Summary

HeartCore Enterprises (Nasdaq: HTCR) has entered into a Consulting Agreement with rYojbaba Inc. to assist in its IPO process, marking the company's tenth consulting service win. HeartCore expects to earn $500,000 in initial fees and has received a warrant to acquire 3% of rYojbaba's common stock. Additionally, HeartCore has received $4.1 million from its investment in SYLA Technologies following its IPO, along with $450,000 from AERWINS. CEO Sumitaka Yamamoto expressed optimism regarding the company's growth trajectory and ongoing client projects in the IPO pipeline, anticipating robust performance in 2023.

Positive

• HeartCore's Consulting Agreement with rYojbaba represents its tenth Go IPO success, indicating strong demand for its consulting services.
• Expected initial fees of $500,000 from the agreement provide immediate revenue generation.
• Acquisition of a warrant for 3% of rYojbaba's common stock may offer future financial benefits.
• HeartCore benefits from total investments nearing $4.5 million from prior clients SYLA and AERWINS, enhancing its financial position.

Negative

• None.

NEW YORK and TOKYO, April 11, 2023 (GLOBE NEWSWIRE) -- HeartCore Enterprises, Inc. (Nasdaq: HTCR) (“HeartCore” or “the Company”), a leading software development company offering Customer Experience Management Platform (“CXM Platform”) and Digital Transformation (“DX”), announced that it has signed an agreement (“Consulting Agreement”) with rYojbaba Inc. (“rYojbaba”) for its tenth Go IPO consulting service win.

As part of the Consulting Agreement, HeartCore will assist rYojbaba in its efforts to go public and list on the Nasdaq Stock Market (“Nasdaq”). Through Go IPO, the Company services clients by assisting throughout 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 or de-SPAC, providing general support services, assisting in the preparation of the S-1 or F-1 filing, and more.

As compensation for its services, HeartCore expects to generate from rYojbaba an aggregate of $500,000 in initial fees. In addition, the Company has received a warrant to acquire 3% of rYojbaba’s common stock, on a fully diluted basis.

Furthermore, HeartCore announced that it received $4.1 million of SYLA Technologies’ common stock following its recent IPO in conjunction with $450,000 of AERWINS’ common stock, both valued as of March 31, 2023.

“We are encouraged by our 10^th Go IPO win and by the warrants we’ve recently received from our prior Go IPO clients, which adds up to nearly $4.5 million,” said CEO Sumitaka Yamamoto. “The case studies of SYLA and AERWINS serve as prime examples of our clients that have funneled through the Go IPO cycle; it is certainly one that greatly benefits HeartCore. Given the progress being made throughout all fronts of our organization, in addition to all of our existing clients within the Go IPO pipeline primed to go public by the end of this year, we believe we’re poised for a robust 2023.”

About HeartCore Enterprises, Inc.
Headquartered in Tokyo, Japan, HeartCore Enterprises is a leading software development company offering 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. Furthermore, HeartCore offers “Go IPO,” a consulting service where it assists private companies with uplisting onto the Nasdaq Stock Market. Additional information about the Company's products and services is available at www.heartcore.co.jp and 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 “believe,” “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@gatewayir.com
(949) 574-3860

FAQ

What is HeartCore's recent Consulting Agreement about?

HeartCore signed a Consulting Agreement with rYojbaba to assist in its IPO process, marking its tenth Go IPO consulting service win.

How much does HeartCore expect to earn from the rYojbaba agreement?

HeartCore expects to generate $500,000 in initial fees from the Consulting Agreement with rYojbaba.

What percentage of rYojbaba's stock does HeartCore plan to acquire?

HeartCore has received a warrant to acquire 3% of rYojbaba's common stock.

How much has HeartCore earned from previous IPO clients?

HeartCore recently received $4.1 million from SYLA Technologies and $450,000 from AERWINS, totaling nearly $4.5 million from prior clients.

What are HeartCore's expectations for 2023?

CEO Sumitaka Yamamoto believes HeartCore is poised for robust performance in 2023, supported by ongoing projects in the IPO pipeline.