UC Asset Filed for Public Offering of 8% Dividend Preferred Units
UC Asset LP (OTCQB: UCASU) has filed Form 1A for a secondary public offering through Reg A Tier II registration, aiming to raise up to $10 million through preferred shares with an 8% annual dividend. The majority of funds will be used to expand its cannabis property portfolio. The company believes the legal cannabis industry has hit bottom after four years of consolidation and expects a second growth wave. To hedge risks, UC Asset will only invest in cannabis properties that can be converted into non-cannabis properties. The preferred shares include a hedging strategy: 8% annual dividend if successful, conversion to common shares at book value if cannabis growth exceeds expectations, or redemption at face value if performance disappoints.
UC Asset LP (OTCQB: UCASU) ha presentato il Modulo 1A per un'offerta pubblica secondaria tramite la registrazione Reg A Tier II, con l'obiettivo di raccogliere fino a 10 milioni di dollari attraverso azioni privilegiate con un dividendo annuo dell'8%. La maggior parte dei fondi sarà destinata all'espansione del portafoglio immobiliare nel settore della cannabis. L'azienda ritiene che l'industria legale della cannabis abbia toccato il fondo dopo quattro anni di consolidamento e prevede una seconda ondata di crescita. Per mitigare i rischi, UC Asset investirà solo in proprietà legate alla cannabis che possano essere riconvertite in immobili non legati alla cannabis. Le azioni privilegiate includono una strategia di copertura: dividendo annuo dell'8% in caso di successo, conversione in azioni ordinarie al valore contabile se la crescita della cannabis supera le aspettative, o riscatto al valore nominale in caso di risultati deludenti.
UC Asset LP (OTCQB: UCASU) ha presentado el Formulario 1A para una oferta pública secundaria a través del registro Reg A Tier II, con el objetivo de recaudar hasta 10 millones de dólares mediante acciones preferentes con un dividendo anual del 8%. La mayoría de los fondos se destinarán a expandir su cartera de propiedades relacionadas con el cannabis. La compañía considera que la industria legal del cannabis ha tocado fondo tras cuatro años de consolidación y espera una segunda ola de crecimiento. Para cubrir riesgos, UC Asset solo invertirá en propiedades de cannabis que puedan convertirse en propiedades no relacionadas con el cannabis. Las acciones preferentes incluyen una estrategia de cobertura: dividendo anual del 8% si tiene éxito, conversión a acciones ordinarias al valor contable si el crecimiento del cannabis supera las expectativas, o redención al valor nominal si el desempeño es decepcionante.
UC Asset LP (OTCQB: UCASU)는 Reg A Tier II 등록을 통한 2차 공개 모집을 위해 Form 1A를 제출했으며, 1,000만 달러까지 우선주를 통해 자금을 조달할 계획입니다. 우선주는 연 8% 배당을 제공합니다. 대부분의 자금은 대마초 부동산 포트폴리오 확장에 사용될 예정입니다. 회사는 합병 4년 후 합법적 대마초 산업이 바닥을 찍었으며 두 번째 성장 물결이 올 것으로 기대하고 있습니다. 위험을 헤지하기 위해 UC Asset은 대마초 부동산을 비대마초 부동산으로 전환할 수 있는 부동산에만 투자할 예정입니다. 우선주는 헤지 전략을 포함하며, 성공 시 연 8% 배당, 대마초 성장률이 기대를 초과하면 장부가치로 보통주 전환, 성과가 미흡하면 액면가로 상환됩니다.
UC Asset LP (OTCQB : UCASU) a déposé le formulaire 1A pour une offre publique secondaire via l'enregistrement Reg A Tier II, visant à lever jusqu'à 10 millions de dollars par le biais d'actions privilégiées offrant un dividende annuel de 8%. La majorité des fonds sera utilisée pour étendre son portefeuille immobilier dans le secteur du cannabis. L'entreprise estime que l'industrie légale du cannabis a touché le fond après quatre ans de consolidation et anticipe une seconde vague de croissance. Pour limiter les risques, UC Asset n'investira que dans des propriétés liées au cannabis pouvant être converties en propriétés non liées au cannabis. Les actions privilégiées incluent une stratégie de couverture : dividende annuel de 8% en cas de succès, conversion en actions ordinaires à la valeur comptable si la croissance du cannabis dépasse les attentes, ou rachat à la valeur nominale en cas de performance décevante.
UC Asset LP (OTCQB: UCASU) hat das Formular 1A für ein sekundäres öffentliches Angebot im Rahmen der Reg A Tier II Registrierung eingereicht und plant, bis zu 10 Millionen US-Dollar durch Vorzugsaktien mit einer jährlichen Dividende von 8% zu beschaffen. Der Großteil der Mittel wird zur Erweiterung des Cannabis-Immobilienportfolios verwendet. Das Unternehmen ist der Ansicht, dass die legale Cannabisbranche nach vier Jahren Konsolidierung den Tiefpunkt erreicht hat und erwartet eine zweite Wachstumswelle. Zur Risikominderung investiert UC Asset nur in Cannabisimmobilien, die in Nicht-Cannabis-Immobilien umgewandelt werden können. Die Vorzugsaktien beinhalten eine Absicherungsstrategie: 8% jährliche Dividende bei Erfolg, Umwandlung in Stammaktien zum Buchwert, wenn das Cannabiswachstum die Erwartungen übertrifft, oder Rückzahlung zum Nennwert bei enttäuschender Leistung.
- 8% annual preferred dividend yield, significantly higher than the average REIT return of 4.9% in 2024
- Hedging strategy through convertible properties that can retain value as regular warehouses
- Potential upside through conversion to common shares at net book value if cannabis industry grows
- Capital protection through redemption at face value if portfolio underperforms
- High-risk investment in cannabis properties, an industry that has seen 95% value loss since 2021
- Success depends on speculative second wave of cannabis industry growth
- Offering will dilute existing shareholders
- Subject to SEC review and qualification before offering can proceed
Investing in Cannabis Property
The majority of the capital raised will be used to expand its portfolio of cannabis property.
"We believe the legal cannabis industry has reached its rock bottom after four years of market consolidation, and we may see the second wave of growth for the cannabis industry starting soon," projected Larry Wu, founder of UC Asset.
According to Wu, the first wave of the cannabis industry started in 2012 and peaked in 2021, during which time stock prices of certain cannabis property companies soared
"However, there has never been an industry that reached its maturity after only one wave of growth," claimed Wu. "It is not unusual for certain industries to experience 3 to 5 waves of fast growth before market saturation. The cannabis industry is far from realizing its full potential, in our opinion. As Warren Buffett once said, we ought to be greedy now, when others are fearful."
Hedging Strategy
Despite the company's confidence that a second wave of fast growth is happening soon, based on its analysis of industrial and macro-economic data, as well as policy trends, Wu cautioned that they could be wrong, and their strategy might lead to losses for investors.
"To hedge against potential loss, we will only invest in cannabis properties that can potentially be converted into non-cannabis properties and may still retain their value," said Wu.
For example, recently the company has entered into LOIs to acquire certain cannabis properties, of which the unit price, according to Wu, will be lower than average warehouses in the same area. "If the cannabis industry does not enter into another stage of fast growth, we may convert these properties into warehouses and may still make a profit," asserted Wu.
The preferred shares offered by the company, therefore, will be imbued with a hedging strategy: It will distribute an
If the cannabis industry experiences faster-than-expected growth, preferred unit shareholders will be able to convert their preferred shares into common shares at net book value, which will potentially give investors a big upside.
On the other hand, if the cannabis industry stumbles, and the company's cannabis property portfolio does not perform, it may trigger a redemption term and allow the preferred unit shareholders to redeem their shares at face value.
For More Information
The full text of the draft of the offering statement, including the full text of the certificate of preferred units to be offered, can be found on the company's EDGAR landing page on the SEC.gov website.
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
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