UC Asset (UCASU) Public Offering's Acquisition Target Reported Better Results

Rhea-AI Summary

UC Asset LP (OTCQB: UCASU) has filed its first amendment to Form 1A for a secondary public offering (SPO) through Reg A, revealing improved financial performance of its cannabis property acquisition targets. The company plans to raise up to $10 million through preferred shares offering an 8% per annum preferred dividend.

The acquisition targets include two groups of properties comprising 25 units with a total of 37,800 square feet. These properties have shown strong performance, generating $137,000 in net operating revenue for the first five months of 2025, projecting an annualized operating profit of $330,000 for 2025 - a 109% growth compared to 2024. UC Asset has a non-binding LOI to acquire these properties for $3 million.

The projected annual operating profit represents approximately 11% of the acquisition price, which the company believes will adequately cover the 8% dividend distribution. The current operating revenue remains at 60% of its peak performance from 2023, when it reached $547,000, suggesting potential for further growth.

Positive

• Projected 109% revenue growth for acquisition target properties in 2025
• Net operating revenue of $137,000 in first five months of 2025
• Projected 11% yield on acquisition price, sufficient to cover 8% preferred dividend
• Proposed 8% dividend significantly higher than average REIT return of 4.9% in 2024
• Opportunity to acquire properties at favorable price (60% of peak performance)

Negative

• Operating profit declined significantly from $547,000 peak in 2023
• Acquisition agreement is currently only a non-binding LOI
• SPO still subject to SEC review and qualification
• Cannabis industry facing challenging market conditions

ATLANTA, July 1, 2025 /PRNewswire/ -- UC Asset LP (OTCQB: UCASU) announced today that the company has filed its first amendment to Form 1A for a secondary public offering (SPO) through Reg A. In this Form 1A/a, the company disclosed improved financial performance of the acquisition target, which was the primary goal of investment, using capital raised from its SPO.

The SPO intends to issue up to $10 million in preferred shares carrying an 8% per annum preferred dividend. The majority of the capital raised will be used to acquire more cannabis properties. The primary targets of acquisition include two groups of properties, which consist of 25 units of detached premises, totaling 37,800 square feet.

109% Revenue Growth Projected for 2025

According to the current owners, the net operating revenue from these two groups of properties reached $137,000 for the first five months of 2025. If this performance persists, it will lead to an annualized operating profit of $330,000 for the year 2025, representing a 109% growth over the operating profit of 2024.

This marks a significant rebound after the operating profit plunged in 2024 from its peak in 2023, when it reached $547,000.

Earlier this year, UC Asset reached a non-binding Letter of Intent (LOI) with the current owners to acquire both groups of properties for a price of $3 million.

A Golden Opportunity to Invest in Cannabis Properties

"We all know that many cannabis operators have faced challenging times in recent years," said Larry Wu, founder of UC Asset. "This is why we believe that the industry has hit rock bottom, and property values have likely reached a historical low. The improvement in financial results for these properties may have validated our projection that a new wave of growth for the cannabis industry is imminent."

Wu pointed out that even after the 109% increase, operating revenue from these properties will still be only 60% of its peak performance two years ago. This suggests that UC Asset will still be able to acquire these properties at a favorable price.

"In other words, it is still an opportune time to acquire undervalued cannabis properties, as we may see their financial performance surge by another 80-100% in the coming years. However, the window of opportunity may be closing soon, and we must act quickly," declared Wu. 

Operating Profit Adequate to Cover 8% Dividend

If qualified by the SEC and other regulatory bodies, UC Asset will offer preferred shares, which will distribute an 8% per annum preferred dividend, subject to profitability. At this moment, an 8% dividend is significantly higher than the average total return of REITs, which was about 4.9% for 2024.

"At this moment, based on the target acquisition price and projected operating revenue from target properties, it appears that our investment will yield adequate profit to cover the distribution of an 8% dividend," said Wu.

For example, the current projected annual operating profit from these two groups of properties will equal approximately 11% of the projected acquisition price.

For More Information

For more information about the planned SPO, its investment strategy, potential return, and risks, please refer to the full text of the offering statement, which has been filed with the SEC and can be found on the company's EDGAR landing page on the SEC.gov website. The filing is subject to SEC review, and the company will not offer any securities until the SEC qualifies its offering statement.

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 the size of UC Asset's (UCASU) planned secondary public offering?

UC Asset plans to raise up to $10 million through preferred shares offering an 8% per annum preferred dividend.

What are the financial projections for UCASU's acquisition target properties in 2025?

The properties are projected to generate $330,000 in annualized operating profit for 2025, representing a 109% growth over 2024.

What is the acquisition price for UCASU's target cannabis properties?

UC Asset has a non-binding Letter of Intent to acquire the properties for $3 million.

How many properties is UCASU planning to acquire?

The acquisition targets include 25 units of detached premises, totaling 37,800 square feet.

What dividend rate is UCASU offering in its secondary public offering?

UC Asset is offering preferred shares with an 8% per annum preferred dividend, subject to profitability.

How does the target properties' current performance compare to their peak?

The current operating revenue is at 60% of its peak performance from 2023, when it reached $547,000.