In a stark reflection of the tumultuous market conditions, Alset Capital Acquisition Corp. (HWH) stock has tumbled to a 52-week low, reaching a price level of just $0.4. According to InvestingPro data, the company's market capitalization has shrunk to $12.35 million, with concerning financial health indicators showing an overall weak rating. This significant downturn in the company's stock price marks a precipitous decline over the past year, with Alset Capital experiencing a staggering 1-year change of -95.83%. The company's financial metrics paint a challenging picture, with negative EBITDA of -$1.59 million and a concerning return on assets of -134.83%. Investors have watched with concern as the stock has steadily eroded in value, culminating in this latest low point, which has raised serious questions about the company's future prospects and the broader implications for its sector. InvestingPro analysis suggests the stock is currently fairly valued, with additional insights available through their comprehensive financial analysis platform.
In other recent news, HWH International's joint venture, Hapi Travel, has seen significant growth, with revenues surpassing $18 million in the first three quarters of 2024, marking a 44.55% increase over the last twelve months. In a strategic move, the company has also sold 4,411,764 shares of common stock to its majority shareholder, Alset Inc., increasing Alset's ownership from 86.6% to 88.8%. This action aims to support HWH International's growth and development initiatives.
Further financial adjustments include a conversion of $3,801,759 in debt into equity, resulting in the issuance of 6,034,537 new shares to Alset International Limited and Alset Inc. This decision is expected to reduce the company's debt load. In addition, HWH International has been granted additional time by the Nasdaq Hearings Panel to meet the exchange's listing requirements, following a failure to meet the minimum market value of publicly held shares and minimum market value of listed securities.
Despite these strategic moves, HWH International faces the potential delisting from the Nasdaq Global Market due to non-compliance with the minimum market value and bid price requirements. The company plans to appeal these decisions as part of its ongoing efforts to satisfy regulatory standards and continue its operations. These are the latest developments in HWH International's financial and operational trajectory.
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