BETHESDA, MD – Alset Inc. (NASDAQ:AEI), a Texas-based company specializing in real estate, announced Monday it has increased its majority stake in HWH International Inc. through a stock purchase agreement. The transaction, which took place on Sunday, involved Alset acquiring an additional 4,411,764 shares of HWH’s common stock at $0.68 per share.
Prior to this agreement, Alset Inc., along with its subsidiaries, owned 86.6% of HWH's issued and outstanding shares. Following the investment, Alset’s ownership has risen to 88.8%. This move strengthens Alset's position in HWH International, indicating a strategic maneuver to further influence the company's direction and growth.
The Chairman and CEO of Alset Inc., Chan Heng Fai, who also serves as Chairman of HWH, along with certain board members who hold positions in both companies, have been instrumental in orchestrating this deal. The investment is seen as a step to support HWH's development and expansion, which Alset believes aligns with the best interests of both entities.
The financial details of this transaction were disclosed in a filing with the Securities and Exchange Commission (SEC). The terms of the stock purchase agreement, which are detailed in Exhibit 10.1 of the 8-K filing, reflect the company’s commitment to fostering growth within its majority-owned subsidiary.
This report is based on a press release statement and provides a summary of the key facts without additional analysis or opinion. It is intended to offer investors a clear understanding of the recent business activities between Alset Inc. and HWH International Inc.
In other recent news, Alset Inc., a Texas-based real estate company, has made significant strides in its operations. The company completed a strategic stock purchase from its subsidiary, Alset International Limited, acquiring 6.5 million shares of HWH International Inc. This transaction involved issuing a secured promissory note valued at $4.095 million with a 5% annual interest rate, maturing on September 26, 2026.
This development followed debt conversion agreements between HWH and its creditors, including Alset Inc. and Alset International Limited, converting approximately $3.8 million of HWH's debt into over 6 million new shares of HWH's common stock.
On the real estate front, Alset Inc.'s subsidiary, 150 CCM Black Oak Ltd., finalized the sale of 72 single-family residential lots in Texas for approximately $3.9 million. This transaction underscores Alset Inc.'s ongoing strategic initiatives in the real estate market. These recent developments are part of Alset Inc.'s broader strategic vision and are indicative of its active engagement in both the real estate and investment sectors.
InvestingPro Insights
Alset Inc.'s recent move to increase its stake in HWH International Inc. aligns with several key financial indicators and trends highlighted by InvestingPro. The company's market capitalization stands at a modest $10.16 million, reflecting its small-cap status. This relatively small size could explain Alset's strategy to consolidate control over its subsidiaries, as evidenced by the increased stake in HWH.
InvestingPro Tips reveal that Alset is "trading at a low Price / Book multiple" of 0.12, which could suggest that the stock is undervalued relative to its assets. This low valuation might have influenced the decision to invest further in HWH, potentially seeing it as an opportunity to increase overall company value.
Additionally, the data shows that Alset has experienced significant revenue growth, with a 400.98% increase in quarterly revenue as of Q3 2024. This substantial growth could be a factor in the company's decision to further invest in its subsidiaries, aiming to capitalize on positive momentum.
It's worth noting that InvestingPro offers 15 additional tips for Alset Inc., providing investors with a more comprehensive analysis of the company's financial health and market position. These insights could be particularly valuable for those looking to understand the full context of Alset's strategic moves, such as the recent HWH stock purchase.
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