Alset Inc. (NASDAQ:AEI), a Texas-based real estate company, announced the completion of a significant land transaction on Monday. The company's subsidiary, 150 CCM Black Oak Ltd., finalized the sale of 72 single-family residential lots in Magnolia, Texas, for a total of approximately $3.9 million.
The sale, which took place on October 10, 2024, involved lots in the "Lakes at Black Oak" community and was made to Century Land Holdings of Texas, LLC. The purchase agreement, which included a fixed price per lot and additional community enhancement fees, was initially agreed upon on November 13, 2023, as previously detailed in an 8-K report filed on November 17, 2023.
This transaction marks a notable event for Alset Inc., as the company continues to navigate the real estate market. The successful closure of this deal is a testament to the company's ongoing operations and strategic initiatives.
150 CCM Black Oak Ltd. operates as an indirect, majority-owned 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 holds 99.9% of LiquidValue Development Inc., the parent company of the seller.
In other recent news, Alset Inc., a Texas-based real estate company, has entered a Stock Purchase Agreement to acquire 6,500,000 shares of HWH International Inc. The transaction involves Alset Inc. buying these shares from its majority-owned subsidiary, Alset International Limited, in exchange for a secured promissory note valued at approximately $4.1 million. This note, carrying an annual interest rate of 5%, is set to mature on September 26, 2026. The acquisition is subject to approval by Alset International Limited's shareholders 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 roughly $3.8 million of HWH's debt into over 6 million new shares of HWH's common stock. Alset Inc.'s acquisition of HWH shares is seen as aligning with the best interests of all parties involved, including HWH, Alset International Limited, and Alset Inc. itself. The leadership of Alset Inc., Alset International Limited, and HWH are interconnected, with significant overlap in board positions across these companies.
InvestingPro Insights
Alset Inc.'s recent land sale transaction aligns with several key financial metrics 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 position.
InvestingPro Tips reveal that Alset Inc. is trading at a low Price / 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 may 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 from this transaction.
However, investors should note that Alset Inc. has not been profitable over the last twelve months, with a negative operating income of $9.36 million. The company's revenue has also seen a significant decline, with a 57.47% decrease in the last twelve months. These factors underscore the importance of strategic moves like the recent land sale in potentially improving the company's financial health.
For those interested in a more comprehensive analysis, InvestingPro offers 16 additional tips for Alset Inc., providing deeper insights into the company's financial status and market position.
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