Atlanta, GA -- July 1,
2025 -- InvestorsHub NewsWire -- 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
UC Asset Limited Partner... (QB) (USOTC:UCASU)
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