Inno Holdings signs MoU with Megabyte for Web3 marketplace development

HONG KONG - Inno Holdings Inc. (NASDAQ:INHD) announced Monday it has entered into a non-binding Memorandum of Understanding (MoU) with Megabyte Solutions Limited to develop Web3 technology applications for its cross-border B2B marketplace platform. The micro-cap company, currently valued at just $9.39 million with shares trading at $0.72, is looking to leverage blockchain technology amid challenging market conditions.

Under the agreement, Megabyte plans to provide blockchain-based logistics and supply chain management solutions for Inno’s developing marketplace platform. The companies stated the initiative aims to enhance transaction privacy, convenience, efficiency, and security. According to InvestingPro data, INHD holds more cash than debt on its balance sheet, which could provide flexibility as it pursues this strategic initiative.

"We will join hands with Megabyte to develop new products and services based on blockchain and decentralized technologies, aiming to address the evolving needs and challenges in cross-border e-commerce and trade," said Ding Wei, CEO of Inno Holdings, in the press release.

The collaboration intends to deploy a decentralized, blockchain-powered service model that integrates hardware and software components to address B2B supply chain and trade requirements.

Inno Holdings describes itself as a trade-focused building technology company that is expanding into electronic product trading. The company is developing a cross-border B2B marketplace platform, which will be enhanced through this strategic partnership. Despite posting impressive revenue growth of 787.64% in the last twelve months, the company is not yet profitable and has been quickly burning through cash.

The MoU represents a non-binding preliminary agreement between the companies, with specific terms and implementation details yet to be finalized. InvestingPro analysis suggests the stock is currently undervalued and trading near its 52-week low, with several additional ProTips available for investors seeking deeper insights into INHD’s financial position.

In other recent news, Inno Holdings Inc. has successfully raised approximately $7.2 million through a registered direct offering with institutional investors. The transaction involved the sale of 1,200,000 shares of common stock priced at $3.60 per share. Additionally, pre-funded warrants were issued to purchase 800,000 shares at $3.59999 per warrant, with an exercise price set at $0.00001 per warrant. These pre-funded warrants are immediately exercisable, providing investors with swift access to shares. This capital raise marks a significant development for Inno Holdings, enhancing its financial standing. The move reflects a strategic effort by the company to bolster its resources through direct engagement with institutional investors. The recent offering underscores Inno Holdings’ commitment to strengthening its market position.

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