Alset Inc. (NASDAQ:AEI), a Texas-based real estate company, announced Monday the completion of a major land transaction. The company’s subsidiary, 150 CCM Black Oak Ltd., completed the sale of 72 single-family residential lots in Magnolia, Texas, for a total of approximately $3.9 million.
The sale, which occurred on 10/10/2024, was for lots in the “Lakes at Black Oak” community and was conducted for the benefit of Century Land Holdings of Texas, LLC. The purchase agreement, which included a fixed price per lot and additional community improvement fees, was originally entered into on 11/13/2023, as previously detailed in an 8-K report filed on 11/17 /2023.
This transaction marks a notable milestone for Alset Inc. as the company continues to navigate the real estate market. The successful closing of this transaction is a testament to the company’s ongoing activities and strategic initiatives.
150 CCM Black Oak Ltd. operates as a majority indirect subsidiary of Alset Inc. and is part of a larger corporate structure, with Alset Inc. owning 85.5% of Alset International Limited, which in turn owns 99.9% of LiquidValue Development Inc., the parent company of the seller.
In other recent news, Alset Inc., a Texas-based real estate company, entered into a stock purchase agreement to acquire 6,500,000 shares of HWH International Inc. The transaction involves Alset Inc. purchasing these shares to its majority subsidiary, Alset International Limited, in exchange for a secured promissory note worth approximately $4.1 million. This note, carrying an annual interest rate of 5%, is due to mature on 09/26/2026. The acquisition is subject to approval by the shareholders of Alset International Limited and other customary closing conditions.
This development follows previous debt conversion agreements between HWH and its creditors, including Alset Inc. and Alset International Limited. These agreements converted approximately $3.8 million of HWH debt into more than 6 million new shares of HWH common stock. Alset Inc.’s acquisition of HWH’s shares is considered aligned with the best interests of all parties involved, including HWH, Alset International Limited and Alset Inc. itself. The management of Alset Inc., Alset International Limited and HWH is interconnected, with significant overlap in board positions of these companies.
Perspectives InvestingPro
Alset Inc.’s recent land sale transaction aligns with several key financial indicators and trends highlighted by InvestingPro. The company’s market capitalization stands at $13.34 million, reflecting its position as a niche player in the real estate industry. This recent $3.9 million sale represents a significant portion of the company’s market value, potentially impacting its financial situation.
InvestingPro Tips reveals that Alset Inc. is trading at a low Price-to-Book multiple of 0.17, suggesting the stock may be undervalued relative to its assets. This could be particularly relevant in light of the recent land sale, which could affect the company’s book value. Additionally, the company holds more cash than debt on its balance sheet, which could be further bolstered by the proceeds of this transaction.
However, investors should note that Alset Inc. was not profitable over the last twelve months, with negative operating income of $9.36 million. The company’s revenue has also seen a significant decline, with a decrease of 57.47% over the last twelve months. These factors highlight the importance of strategic moves like the recent land sale to potentially improve the financial health of the company.
For those interested in a more comprehensive analysis, InvestingPro offers 16 additional tips for Alset Inc., providing deeper insights into the company’s financial condition and market position.
