Business
Alset Inc. Announces Execution of Binding Term Sheet to Acquire 41.5% Interest in Company Engaged in Distribution of Electric Vehicles and Charging Stations
Bethesda, MD, Dec. 13, 2023 (GLOBE NEWSWIRE) -- Alset Inc. (NASDAQ:AEI) ("AEI" or the "Company"), a diversified holding company principally engaged through
About this update from Alset Inc.
[{"type":"text","content":"Bethesda, MD, Dec. 13, 2023 (GLOBE NEWSWIRE) -- Alset Inc. (NASDAQ:AEI) (\"AEI\" or the \"Company\"), a diversified holding company principally engaged through its subsidiaries in the development of smart and sustainable home communities and other property development, financial services, digital transformation technologies, biohealth activities and consumer products, is pleased to announce the signing of a binding term sheet to acquire 100% of New Energy Asia Pacific Inc. (“NEAPI”). NEAPI owns approximately 41.5% of New Energy Asia Pacific Limited, a Hong Kong company (“New Energy”). New Energy focuses on distributing all-electric versions of special-purpose and transportation vehicles, charging stations and batteries. This is a strategic move for AEI which is in line with the Company’s commitment to advancing sustainable and eco-friendly solutions for the future. NEAPI will be acquired from Mr. Heng Fai Chan, the Company’s Chairman, Chief Executive Officer and largest stockholder. The consideration for the acquisition will consist of a convertible note in the amount of $103.75 million U.S. Dollars to be issued by the Company to the seller. Such convertible note will have a five year term and an interest rate of three (3%) per year. The note may be converted into shares of the Company’s common stock by either party, at any time during the term of the note. The conversion price for such note has been set at $12.00 per share (based on a calculation of the approximate adjusted NAV of the Company per share as at September 30, 2023) which is equivalent to approximately 16 times the last market trading price of AEI of $0.75 as of December 12, 2023. The closing of this acquisition will be subject to certain standard closing conditions. Currently, New Energy has a strong pipeline of demand, with signed collective sales secured via Memorandums of Understanding totalling up to $42 million in value and continues to garner strong interest from local government departments and market demand. New Energy will seek to significantly increase revenues in the coming months relating to both electric chargers and electric vehicles. New Energy’s expertise extends across Asia, with established service and training centers in China and Hong Kong, and ongoing development planned in various parts of the world. The acquisition of NEAPI, and with it, this...