INFOBIRD CO., LTD ANNOUNCES THE SUSPENSION OF CAPITAL RAISING IN THE NEXT THREE MONTHS

Rhea-AI Summary

Infobird Co., Ltd (NASDAQ: IFBD) announces the suspension of financing activities for the next three months to focus on business expansion and protect the interests of small and medium shareholders.

Financial Analyst

Infobird Co., Ltd's announcement to halt financing activities for the next three months is a strategic decision that can have multiple interpretations in the financial community. On one hand, this could signal that the company is confident in its current liquidity and cash reserves, suggesting a stable financial position that does not necessitate immediate additional capital. This may be reassuring to investors who are often concerned about dilution of shares or the burden of increased debt on a company's balance sheet.

On the other hand, the decision to suspend financing could raise questions about the company's ability to fund growth initiatives or whether it anticipates slower growth that would not require significant capital. Investors might also speculate on the nature of the discussions with previous investors that led to this decision. The lack of need for financing might also be perceived as a positive sign of operational efficiency and cost management, potentially leading to an improved bottom line in the short-term.

However, for a SaaS company operating in the competitive AI-powered customer engagement solutions market, continuous investment in technology and product development is crucial. The decision to not engage in financing could impact the company's long-term ability to innovate and maintain a competitive edge. Investors should monitor the company's performance and future statements to assess the implications of this decision on its growth trajectory.

Market Research Analyst

The announcement by Infobird Co., Ltd to refrain from financing activities could suggest a strategic positioning within the SaaS market in China. By not diluting the market with additional shares or taking on more debt, Infobird might be aiming to send a message of financial stability and prudent management to its stakeholders. In the context of China's SaaS industry, which is characterized by rapid growth and fierce competition, this move could be interpreted as a commitment to growing the business through existing means rather than relying on external funding.

Furthermore, this approach aligns with a trend where SaaS companies focus on achieving profitability sooner rather than later, a shift from the growth-at-all-costs model. Investors and analysts should consider how this decision aligns with broader market trends and the company's operational efficiency. It is also important to evaluate how this might affect Infobird's market share and competitive positioning, as the company may forgo aggressive expansion plans that would have been supported by additional financing.

From a market perspective, this decision may be seen as a conservative move, which could either instill confidence in the company's existing business model or raise concerns about its growth potential. The impact on the stock market will likely depend on the company's subsequent performance and its ability to capitalize on the funds it has already raised.

HONG KONG, Feb. 16, 2024 /PRNewswire/ -- Infobird Co., Ltd (NASDAQ: IFBD) ("Infobird" or the "Company"), a software-as-a-service provider of AI-powered customer engagement solutions in China, today announced that there will be no financing plan in the next three months.

Our management team would appreciate for potential investors continued attention and interest to the Company, and we have raised some operating funds in previous financing activities will help us better expand our business. To better protect the interests of our small and medium shareholders, our management team decided not carry out any financing activities in the next three months and suspend previous financing activities conducted by the Company after speaking with and agreed by previous investors. We will continue to diligently develop the Company's business and seek new opportunities.

About Infobird Co., Ltd

Infobird, headquartered in Hong Kong, is a software-as-a-service provider of innovative AI-powered, or artificial intelligence enabled, customer engagement solutions. For more information, visit Infobird's website at www.Infobird.com.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "plans", "will," "future," "expects," "believes," and "intends," or similar expressions, are intended to identify forward-looking statements. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events, results, conditions or performance of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date they are made. In evaluating such statements, investors and prospective investors should review carefully various risks and uncertainties and other matters identified in the Company's filings with the U.S. Securities and Exchange Commission. These risks and uncertainties could cause the Company's actual results to differ materially from those indicated in the forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.

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SOURCE Infobird Co., Ltd

Is Infobird Co., Ltd planning any financing activities in the next three months?

No, Infobird Co., Ltd has announced the suspension of financing activities for the next three months.

What is the ticker symbol for Infobird Co., Ltd?

The ticker symbol for Infobird Co., Ltd is IFBD.

Why did Infobird Co., Ltd decide to suspend previous financing activities?

Infobird Co., Ltd decided to suspend previous financing activities to protect the interests of small and medium shareholders and focus on business expansion.

What will Infobird Co., Ltd focus on during the next three months?

Infobird Co., Ltd will focus on diligently developing the Company's business and seeking new opportunities.