Item
8.01. Other Events.
On
February 3, 2022, Alset Capital Acquisition Corp. (“Alset Capital”), a special purpose acquisition company (SPAC) sponsored
by Alset EHome International Inc. (the “Company”) and certain affiliates, closed its initial public offering of 7,500,000
units at $10.00 per unit (the “Offering”).
Each
unit consisted of one of Alset Capital’s shares of Class A common stock, one-half of one redeemable warrant, and one right to receive
one-tenth (1/10) of one share of Class A common stock upon the consummation of an initial business combination. Each whole warrant entitles
the holder thereof to purchase one share of Class A common stock at a price of $11.50 per share. Only whole warrants are exercisable.
The underwriters exercised their over-allotment option in full for an additional 1,125,000 units on February 1, 2022, which closed at
the time of the closing of the Offering. As a result, the aggregate gross proceeds of the Offering, including the over-allotment, were
$86,250,000, prior to deducting underwriting discounts, commissions, and other Offering expenses.
The
units have been listed on the Nasdaq Global Market (“Nasdaq”) and began trading on February 1, 2022, under the ticker symbol
“ACAXU”. Once the securities comprising the units begin separate trading, the shares of Class A common stock, warrants and
rights are expected to be listed on Nasdaq under the symbols “ACAX,” “ACAXW” and “ACAXR,” respectively.
Alset
Capital is a newly organized blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition,
stock purchase, reorganization or similar business combination with one or more businesses. While Alset Capital may pursue an initial
business combination target in any business or industry, it intends to focus on identifying businesses in the real estate industry, including
construction, homebuilding, real estate owners and operators, arrangers of financing, insurance, and other services for real estate,
and adjacent businesses and technologies targeting the real estate space, which may be referred to as “Proptech” businesses.
The
Company and its majority-owned subsidiary Alset International Limited each own 45% of the sole member of Alset Acquisition Sponsor, LLC,
the sponsor (the “Sponsor”) of Alset Capital, with the remaining 10%
of the sole member of the Sponsor owned by Alset Investment Pte. Ltd., a company owned by the Company’s Chairman, Chief Executive
Officer and largest stockholder, Chan Heng Fai.
On
February 3, 2022, the Sponsor purchased 473,750 units (the “Private Placement Units”) pursuant to a private placement for
a purchase price of $4,737,500. Each Private Placement Unit consists of one share of Class A common stock, one-half of one warrant and
one right entitling the holder to receive one tenth (1/10) of one share of Class A common stock. Previously, the Sponsor had purchased
2,156,250 shares of Class B common stock (the “Founder Shares”) pursuant to a private placement for a purchase price of $25,000,
or approximately $0.012 per share. The Class B common stock will automatically convert into shares of Class A common stock at the time
of Alset Capital’s initial business combination on a one-for-one basis, subject to certain adjustments.