HeartCore Enterprises, Inc., a company specializing in computer processing and data preparation, announced the results of its annual virtual meeting of stockholders held on September 27, 2024. During the meeting, shareholders voted on key proposals including the election of directors and an amendment for a reverse stock split.
All six nominees for the Board of Directors were elected to serve a one-year term. The elected directors are Sumitaka Yamamoto, Ferdinand Groenewald, Kimio Hosaka, Heather Neville, Prakash Sadasivam, and Koji Sato. The approval for each director was overwhelming, with the lowest number of votes against a nominee being 69,252 and the highest number of votes for a nominee being 16,053,389.
Additionally, the company received approval from its shareholders to implement a reverse stock split of its common stock. The approved amendment allows for a split at a ratio of no less than 1-for-2 and no more than 1-for-10, as decided by the Board of Directors. The reverse stock split received significant support, with 17,318,039 votes for the amendment, 348,694 against, and 20,070 abstentions.
Furthermore, the stockholders ratified the appointment of MaloneBailey, LLP as the independent auditors for the fiscal year ending December 31, 2023. The ratification passed with 17,653,497 votes for, 8,645 against, and 24,661 abstentions.
These decisions are part of HeartCore Enterprises' efforts to align its corporate governance with shareholder interests and to possibly improve the marketability of its common stock. The company, incorporated in Delaware and headquartered in Tokyo, Japan, is registered on the Nasdaq Capital Market under the trading symbol HTCR.
In other recent news, HeartCore Enterprises disclosed its earnings from the SBC Medical Group Holdings Inc.'s initial public offering (IPO), reporting a revenue of $17.9 million. This income was generated through initial fees and warrants valued at $17 million, including $9 million from the sale of warrants to a Japanese financial institution. After deducting a referral fee to So Management Inc., net sales amounted to $5.64 million.
HeartCore's holdings in SBC stock, now trading on the Nasdaq Global Market, are valued at $8 million. The company has also released its financial guidance for Q3 2024, projecting revenues between $19 million and $23 million, and a net profit ranging from $4 million to $8 million.
In comparison to the first nine months of 2023, where the revenue was $18.5 million, HeartCore expects to generate between $28.1 million to $32.1 million in revenue for the same period in 2024.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on HeartCore Enterprises' financial situation and market performance. The company's market capitalization stands at $19.61 million, reflecting its current valuation in the market. Despite the recent corporate actions, HeartCore faces some financial challenges. An InvestingPro Tip indicates that the company is "quickly burning through cash," which could be a concern for investors considering the recent reverse stock split approval.
On a positive note, HeartCore's stock has shown strong recent performance. InvestingPro data reveals a significant 34.29% return over the last week and an impressive 46.53% return over the last month. This aligns with another InvestingPro Tip suggesting a "significant return over the last week."
Interestingly, despite these recent gains, the company offers a substantial dividend yield of 8.51%. This high yield, combined with the recent stock performance, may attract income-focused investors. However, potential investors should note that HeartCore is "not profitable over the last twelve months," according to another InvestingPro Tip.
For readers interested in a more comprehensive analysis, InvestingPro offers 13 additional tips for HeartCore Enterprises, providing a deeper understanding of the company's financial health and market position.
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