HeartSciences Files Preliminary Proxy, Reports Fiscal 2026 Results, and Updates on Fortitude Merger
HSCS sits 32% above its 52-week low of $1.63.
Summary
HeartSciences filed its preliminary proxy for the Fortitude merger, reported fiscal 2026 results with minimal cash and equity, and provided new Fortitude operational metrics including a $50M+ EBITDA estimate and a reverse split proposal to secure Nasdaq listing.
Key Events · M&A and Partnerships · HSCS
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Fiscal 2026 Financials Disclosed
HeartSciences reported no meaningful revenue, $1.7 million in cash, and shareholders' equity of just $0.2 million as of April 30, 2026, highlighting its precarious standalone position.
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Fortitude Operational Updates
Fortitude energized its Grand Island facility, expanding owned power to over 60MW, and expects to reduce Zcash mining cost from ~$70 to ~$40 per coin. It estimates run-rate Adjusted EBITDA over $50 million at Zcash prices above $500.
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Pro Forma Merger Details
The merger will issue approximately 107.6 million Class V shares to DCG, resulting in pro forma combined shareholders' equity of $70.0 million.
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Reverse Stock Split Proposed
A reverse stock split at a ratio between 1-for-2 and 1-for-5 is proposed to meet Nasdaq listing requirements for the combined company post-merger.
Analysis · HSCS · Industrial Applications And Services
HeartSciences disclosed its fiscal 2026 financials — no meaningful revenue, $1.7M cash, and just $0.2M in equity — underscoring the urgency of its all-stock merger with Fortitude Mining. The filing also reveals Fortitude's new Grand Island facility is energized, targeting a drop in mining cost to ~$40/ZEC, and estimates run-rate Adjusted EBITDA over $50M at Zcash prices above $500. Pro forma combined equity is $70M, with DCG receiving ~107.6M Class V shares. A reverse split proposal (1-for-2 to 1-for-5) is included to maintain Nasdaq listing. These details materially advance the merger narrative and highlight both the existential risk for HeartSciences standalone and the potential upside of the combined entity.
At the time of this filing, HSCS was trading at $2.15 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $8.8M. The 52-week trading range was $1.63 to $3.93. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.