Alset Inc. Announces Closing of $1.5 Million Registered Direct Offering Priced at the Market Under Nasdaq Rules

Rhea-AI Summary

Alset Inc. (NASDAQ: AEI) has successfully closed its previously announced registered direct offering, raising approximately $1.5 million through the sale of 1,500,000 shares of common stock at $1.00 per share. The offering, which closed on January 3, 2025, was priced at-the-market under Nasdaq rules.

The company, which operates in the United States, Singapore, Hong Kong, and South Korea, plans to use the net proceeds for general corporate purposes and working capital. The offering was conducted through Aegis Capital Corp. as the exclusive placement agent and was made pursuant to an effective shelf registration statement previously filed with the SEC.

Positive

• Secured $1.5 million in additional funding
• Successfully completed at-market offering without discount

Negative

• Shareholder dilution through issuance of 1,500,000 new shares
• Funds allocated for general purposes rather than specific growth initiatives

Insights

Financial Analyst

This $1.5 million registered direct offering marks a concerning capital raise for Alset Inc., particularly given its small market cap of $18.2 million. The offering price of $1.00 per share and the issuance of 1.5 million new shares represents significant dilution for existing shareholders, effectively increasing the share count by approximately 8.2%. The pricing 'at-the-market' typically indicates weak demand from institutional investors. While the capital injection provides some short-term working capital relief, the dilutive nature and small size of the raise may suggest deeper financial challenges. The use of proceeds description as 'general corporate purposes and working capital' is notably vague and doesn't indicate any strategic growth initiatives, which could signal the funds are needed for basic operational sustainability rather than expansion. The involvement of Aegis Capital Corp. as placement agent, while providing legitimacy to the offering, also means significant fees will be deducted from the already modest gross proceeds.

Market Research Analyst

The timing and structure of this capital raise reveal important market dynamics. The decision to execute a registered direct offering, rather than a traditional follow-on public offering, suggests management sought a faster, more certain path to funding, potentially indicating urgent capital needs. The $1.00 per share pricing doesn't offer a premium to attract institutional investors, which could impact market perception of the company's value proposition. For a diversified company operating across multiple sectors (EHome communities, real estate, financial services, digital transformation and biohealth) in various international markets, the size of this raise appears insufficient to drive meaningful growth in any single vertical. The offering's structure through a shelf registration indicates the company may be positioning for additional capital raises in the future, which could lead to further dilution.

BETHESDA, MD, Jan. 03, 2025 (GLOBE NEWSWIRE) -- Alset Inc. (NASDAQ: AEI) (the “Company”), a diversified company engaged through its subsidiaries in the development of EHome communities and real estate, financial services, digital transformation technologies, biohealth activities and consumer products with operations in the United States, Singapore, Hong Kong and South Korea, today announced the closing of its previously announced registered direct offering priced at-the-market under Nasdaq rules for the purchase and sale of an aggregate of 1,500,000 shares of common stock at a purchase price of $1.00 per share.

Aggregate gross proceeds to the Company were approximately $1.5 million, before deducting placement agent fees and other offering expenses payable by the Company. The transaction closed on January 3, 2025. The Company expects to use the net proceeds from the offering, together with its existing cash, for general corporate purposes and working capital.

Aegis Capital Corp. acted as exclusive placement agent for the offering. Sichenzia Ross Ference Carmel LLP acted as counsel to the Company. Kaufman & Canoles, P.C. acted as U.S. counsel to Aegis Capital Corp.

The registered direct offering was made pursuant to an effective shelf registration statement on Form S-3, as amended (No. 333-264234) previously filed with the U.S. Securities and Exchange Commission (SEC) and declared effective by the SEC on May 5, 2022. A final prospectus supplement and accompanying prospectus describing the terms of the proposed offering have been filed with the SEC and is available on the SEC’s website located at www.sec.gov. Electronic copies of the final prospectus supplement and the accompanying prospectus may be obtained, when available, by contacting Aegis Capital Corp., Attention: Syndicate Department, 1345 Avenue of the Americas, 27th floor, New York, NY 10105, by email at syndicate@aegiscap.com, or by telephone at +1 (212) 813-1010.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Alset Inc.

Alset Inc. is a diversified company executing on its vision to accelerate sustainable healthy living with a focus on the development of EHome communities and other property development, financial services, digital transformation technologies, biohealth activities and consumer products. Through its operating subsidiaries, Alset’s mission is to provide a healthy living ecosystem that drives long-term exponential growth, building liquidity and value for shareholders. For more information, please visit: www.alsetinc.com.

Forward-Looking Statements

The foregoing material may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended. Forward-looking statements include all statements that do not relate solely to historical or current facts, including without limitation statements regarding the Company’s product development and business prospects, and can be identified by the use of words such as “may,” “will,” “expect,” “project,” “estimate,” “anticipate,” “plan,” “believe,” “potential,” “should,” “continue” or the negative versions of those words or other comparable words. Forward-looking statements are not guarantees of future actions or performance. These forward-looking statements are based on information currently available to the Company and its current plans or expectations and are subject to a number of risks and uncertainties that could significantly affect current plans. Should one or more of these risks or uncertainties materialize, or the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended, or planned. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee future results, performance, or achievements. Except as required by applicable law, including the security laws of the United States, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results.

Investor Contact: Alset Inc.,
4800 Montgomery Lane, Suite 210, Bethesda, MD 20814
Email: contact@alsetinc.com

FAQ

How much did Alset Inc. (AEI) raise in its January 2025 offering?

Alset Inc. raised approximately $1.5 million through the sale of 1,500,000 shares at $1.00 per share.

What is the price per share for AEI's January 2025 registered direct offering?

The offering price was $1.00 per share.

How will Alset Inc. (AEI) use the proceeds from its January 2025 offering?

The company plans to use the net proceeds for general corporate purposes and working capital.

Who was the placement agent for AEI's January 2025 registered direct offering?

Aegis Capital Corp. acted as the exclusive placement agent for the offering.

How many shares did Alset Inc. (AEI) issue in its January 2025 offering?

Alset Inc. issued 1,500,000 shares of common stock in the offering.