Atlanta, GA -- May 9, 2023 -- InvestorsHub NewsWire
-- UC Asset LP (OTCQB:
UCASU) management announces that the general partner of the
company, UCF Asset LLC, will consider a management buy-out (MBO) in
the next 12 months. Management asserts that the
company will continue to pursue a secondary public offering (SPO)
in combination with an uplisting to major exchanges, although that
management also sees MBO as an option.
"Our
goal has been, and will always be, to build a
hundred-million-dollar business in order to provide great returns
to our investors," says Larry Wu, founder of UC Asset. "However,
given today's macro-economy and capital market situation, we have
to diversify our capital market strategy to consider other options
for the benefits of our investors."
The
company has not disclosed any details of a possible MBO. Typically,
MBO is a type of leveraged buyout, which is an acquisition of the
company by its management team, funded primarily with borrowed
capital.
Management insists that, at this moment, it is only
an option on which the team will conduct further research,
including to solicit interests from potential lenders. The company
will not file any SEC reports, including but not limited to Form
8-K, on this matter while it is still a developmental stage
idea.
In the
beginning of this year, UC Asset LP (OTCQB:
UCASU) management announces that the company has jump-started
its plan to up-list to a major exchange, probably NASDAQ or NYSE,
after it had put on hold this plan for about six months.
"Our
management team has an established strategy to
growth. We have identified deal
pipelines with great potential, mostly of cannabis properties, for
a potential portfolio expansion of $10 - $ 30 million. We
have the right team to manage them. We are
confident we are able to achieve the economy scale with additional
capital," Wu shares.
For
this purpose, UC Asset plans to launch a SPO (secondary public
offering) to raise $10 – 20 million. Wu indicates that it may also
conduct a PIPE (private investment in public equity) raise prior to
the SPO to raise $2 – 5 million.
"All
the fund-raising will not dilute the equity of current
shareholders, as our bylaw expressly prohibits the company from
issuing any stocks at a price lower than the company's net equity
per share," asserts Wu. "Particularly, we will NEVER take any
investments of toxic manner, such as convertible notes of variable
conversion ratios."
"We
have been very disciplined in issuing shares," continues Wu. " Our
total issued and outstanding shares have actually decreased since
our IPO, from over 5.6 million shares to less than 5.5 million
shares. And last year we cancelled all our preferred units of a
total number of 166,667 shares. In short, the supply of our shares
is very limited, and we have adequate room to support our growth
plan."
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