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Alset Inc. (NASDAQ:AEI), a company with a market capitalization of $9.88 million and strong liquidity position, has entered into a Stock Purchase Agreement to acquire New Energy Asia Pacific Inc. for $83 million, payable through a convertible promissory note. According to InvestingPro data, the company maintains a healthy balance sheet with more cash than debt and a current ratio of 11.22. The transaction, which took place on Thursday, involves the purchase of shares from Chan Heng Fai, Alset’s Chairman and CEO.
The agreement stipulates that the convertible note carries a 1% annual interest rate and can be converted into Alset’s common stock at $3.00 per share before maturity - significantly above the current trading price of $0.93. The note is set to mature five years from the date of the agreement, at which point any remaining principal and accrued interest will automatically convert into common stock. InvestingPro analysis suggests the stock is currently trading below its Fair Value, with multiple favorable valuation metrics available to subscribers.
This strategic acquisition aligns with Alset’s commitment to sustainable and environmentally friendly solutions, as New Energy focuses on electric vehicles, charging stations, and batteries. With a low debt-to-equity ratio of 0.04 and annual revenue of $16.1 million, the company appears well-positioned to execute this strategic move. The deal is subject to approval by Alset’s majority shareholders.
The Board of Directors and Audit Committee have approved the transaction, with a fairness opinion confirming its financial fairness to shareholders. Chan Heng Fai and his son, both involved with New Energy, abstained from voting on the acquisition.
The information is based on a press release statement.
In other recent news, QMMM Holdings Limited announced the date for its annual shareholder meeting, which will be held on March 13, 2025. This meeting will take place at the company’s principal executive offices in Hong Kong. Shareholders will receive a proxy statement and a form of proxy card, which are essential for the voting process during the annual meeting. The proxy statement, dated March 13, 2025, includes detailed information regarding the agenda and the issues to be voted on. QMMM Holdings operates under the standard industrial classification of advertising agencies and is incorporated in the Cayman Islands. The company files its annual reports under Form 20-F, providing financial information to the Securities and Exchange Commission. This form is similar to the 10-K filed by domestic companies in the United States. The announcement of the annual meeting is based on the latest 6-K form filed with the SEC, ensuring transparency in the company’s operations and compliance with regulatory requirements. Investors can refer to the company’s SEC filings for more detailed information.
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