UC Asset announces plan of acquisition to increase awareness for its stock trading

Rhea-AI Summary

UC Asset LP (OTCQB: UCASU) has announced plans to acquire another publicly-traded company with a larger shareholder base and higher trading volume. The company aims to address its current low trading activity, which stems from having fewer than 200 shareholders since its Reg A IPO. Larry Wu, the company's founder, explains that their tight capital structure has resulted in market attention and frequently zero daily trading volume.

The proposed acquisition would be similar to a reverse merger, where UC Asset would acquire a public company through a security exchange deal. The target company should ideally have minimal business activity but a large shareholder base, preferably from the real estate industry. The company has begun searching for potential targets but has not set a timeline for completion.

ATLANTA, Nov. 25, 2024 /PRNewswire/ -- UC Asset LP (OTCQB: UCASU) announces today that the company is seeking to acquire another public-traded company, which should have a much wider shareholder base and a much higher volume of trading. The acquisition, if goes through, may possibly increase the trading volume of UC Asset.

"Our company went public through an IPO under Reg A, and remained a company of a tight capital structure," says Larry Wu, founder of UC Asset. "We had less than 90 shareholders when our IPO was closed. Almost 6 years since our shares have been quoted and traded on OTC platform, we still have less than 200 shareholders at this moment."

A tight capital structure, according to Wu, may have lots of benefits. But it means that the company has a very small size of audience who may constantly follow the business progress of the company.

"Very few people are paying attention to any a piece of news about us, whether it is positive or negative," explains Wu. "So there are very few people trading our shares based on what they have read or heard, and even less when there is no news out.  In most trading days, the trading volume of our shares is zero."

"As far as we understand it, the market is practically inefficient for us, when the level of trading of our shares is so low. Therefore, our understanding is that it is difficult for the market to find the fair value of our shares, as a more efficient market would presumably do."

Wu emphasizes that the company doesn't hold any opinion on whether its current share price is above or under its fair value.  However, the company believes that a more efficient market will help finding out the fair value of its shares.

The company believes that, by acquiring another public company with a much wider shareholder base, it will substantially increase the trading activity of UC Asset's shares.

"The concept will be similar to the idea of a reverse merger," elaborates Wu. "UC Asset will acquire, through a security exchange deal, another public company which should have very limited business action but a very large shareholder base, and preferably from the real estate industry. After the merger, all the shareholders of the target company will become UC Asset's shareholders. The difference between our planned acquisition and a reverse merger is that, the acquiring company in a reverse merger is usually a private company, while for our transaction the acquiring company, namely we ourselves, is also a public company."

Wu claims that UC Asset has started searching for target companies, but has no projection on when or whether the company can reach a deal for such an acquisition.  The company welcomes tips on possible opportunities. 

About UC Asset LP

UC Asset LP is a limited partnership formed for the purpose of investing in real estate with innovative strategies.  For more information about UC Asset, please visit: www.ucasset.com

Disclaimer:

This News Release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause our actual results, performance or achievements, or industry results, to differ materially from any these statements. You are cautioned not to place undue reliance on any those forward-looking statements. Except as otherwise required by the federal securities laws, we undertake no obligation to publicly update or revise any forward-looking statements after the date of this news release. None of such forward-looking statements should be regarded as a representation by us or any other person that the objectives and plans set forth in this News Release will be achieved or be executed.

For More Information Contact: IR@UCasset.com, +1 470-475-1035

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SOURCE UC Asset LP

FAQ

What is UC Asset's (UCASU) plan to increase its stock trading volume in 2024?

UC Asset plans to acquire another public-traded company with a wider shareholder base and higher trading volume through a security exchange deal, similar to a reverse merger structure.

How many shareholders does UC Asset (UCASU) currently have in 2024?

According to the announcement, UC Asset has less than 200 shareholders, up from less than 90 shareholders when their IPO closed.

What type of company is UC Asset (UCASU) looking to acquire?

UC Asset is seeking to acquire a public company with business activity but a large shareholder base, preferably from the real estate industry.

Why does UC Asset (UCASU) have low trading volume?

UC Asset has low trading volume due to its tight capital structure and small shareholder base, resulting in market attention and often zero daily trading volume.