Canopy Growth stock tumbles after announcing $200 million share sale plan
AlTi Global, Inc. (NASDAQ:ALTI), a $591.53 million market cap company trading at $4.08 per share, announced Friday that it will wind down its International Real Estate (IRE) business following a strategic review by its board and management. According to InvestingPro data, while the company isn’t currently profitable, analysts expect positive earnings this year. The decision, disclosed in a press release statement and detailed in a filing with the Securities and Exchange Commission, comes after the IRE business experienced ongoing losses and had relied on funding from the broader company.
The IRE unit, which operated as an independently managed arranger and distributor of real estate transactions, was created prior to the formation of AlTi Global. According to the company, all options were considered, including a solvent exit, but supporting the IRE business was determined to no longer align with the interests of shareholders, clients, and other stakeholders. InvestingPro analysis shows the company maintains strong financial flexibility with a current ratio of 1.56, indicating sufficient liquid assets to meet short-term obligations.
As a result, the directors of the relevant IRE entities have decided to appoint Administrators from Teneo in the UK to conduct an orderly wind-down of the business. AlTi Global stated that its priority is to work with Teneo to ensure a smooth transition of control from the IRE directors to the Administrators.
A dedicated team will remain in place to oversee the IRE business’s investor reporting, asset management, and compliance obligations to ensure ongoing monitoring and review of investments in line with the company’s duties to investors. The administration process is limited to the IRE business and does not affect the company’s other operations.
The company’s chief executive officer, Michael Tiedemann, signed the filing. The information is based on a press release statement and details provided in AlTi Global’s Form 8-K filed with the SEC.
In other recent news, AlTi Global Inc. reported a strong start to 2025 with a 14% year-over-year increase in consolidated revenue, reaching $58 million in the first quarter. Despite a net loss of $3 million, the company saw significant growth in its core Wealth and Capital Solutions segment, which rose by 23%. Additionally, AlTi Global’s adjusted EBITDA increased by 38%, demonstrating operational efficiency. The company also announced a strategic decision to wind down its non-core International Real Estate business, with the process expected to be substantially completed by December 2027. This follows a comprehensive strategic review by the board of directors.
AlTi Global renewed the executive employment contract with Colleen Graham, the company’s Chief Legal, Compliance, and Risk Officer, ensuring continuity in leadership. Under the new agreement, Graham will continue her role with an annual base salary of $425,000, along with eligibility for bonuses and participation in the company’s equity incentive plan. In another development, AlTi Global filed an amended proxy statement with the Securities and Exchange Commission, clarifying details for its upcoming annual meeting of stockholders. This amendment provides additional information on voting rights and the quorum requirement for the meeting. These recent developments reflect AlTi Global’s strategic focus on growth and operational efficiency.
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