BETHESDA, MD / ACCESSWIRE / January 12, 2022 / Alset EHome International Inc. (NASDAQ:AEI) ('AEI', 'Company' or together with its subsidiaries, the 'Group'), 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 providing shareholders with this update on the Group's developments for the year 2021.
Despite the challenges posed by the ongoing pandemic situation globally, the Board of Directors continues to see progress in the Group's business. The Board of Directors and management believe that progress made in Financial Year 2021 has positioned the Group to grow in the years ahead.
1) Business Operations
1.1 International Property Development
In the Property Development Business, the Group entered into a strategic agreement with Tesla Inc. for a supply of Tesla PV solar panels, Powerwalls, and EV chargers for the Group's smart and sustainable single-family homes ('EHomes'). Some of the Group's EHomes already have a combination of these technologies in operation providing solar energy generation and storage. In addition, a pipeline of sustainable EHome communities is planned to achieve our goal of reducing the carbon footprint of electricity usage.
During the past year, the Group was also able to acquire a 6.3 acre plot of land contiguous to its existing Alset at Black Oak project, enlarging the number of planned homes within the community. In addition, the Group completed an acquisition of 19.5 acres of partially developed land near Houston, Texas, adjacent to The Woodlands. The Group intends to develop this plot of land into a community named Alset Villas, with approximately 70 EHomes for sales and rent.
The Group currently has real estate assets in communities spanning in Texas and Maryland. Our Ballenger Run development in Maryland, consisting of 689 units, has continued to experience strong sales and is close to being fully sold. In addition, during the year, the Group acquired 109 single-family homes for rent surpassing our original target of acquiring 100 homes in the year 2021.
American Home REIT ('AHR')
The Group has moved 30 homes into a subsidiary, AHR. AHR is being developed with the intention of creating a company that will own and manage income-producing, high-yielding real estate in the US, with a focus on communities consisting of single-family homes. AHR's target is to acquire assets with a capitalisation rate of approximately 5% and AHR intends to pay a quarterly dividend up to an annualised rate of 6%.
US$15 million private investment in public equity ('PIPE') deal with DSS Inc. ('DSS')
The Group invested in DSS through a US$15 million PIPE deal and collectively hold approximately 25% of DSS' outstanding shares. DSS is headquartered in Rochester, New York and is a multinational company operating in direct-to-consumer sales & marketing, bio health, securities & funds management, blockchain & fintech, and renewable energy. The investment in DSS will pave the way for the Group in building its new businesses.
American Medical REIT ('AMRE')
As part of the Group's investment business, the Group is a shareholder in AMRE. AMRE has acquired 5 medical properties, consisting of 2 medical facilities and 3 acute care hospitals based on a capitalisation rate of approximately 8%. These facilities are well-established with clinics and 195 hospital beds over a total area of 380,000 square feet. They are located near substantial populations, in the states of Connecticut, Texas, Pennsylvania and Florida. Currently AMRE is paying a quarterly dividend of 8% in annualised yield.
AMRE plans to increase AMRE's portfolio to 15 medical properties in 2022.
Digital Assets-Based Exchange Traded Product ('ETP')
In 2022, Credas Capital Pte Ltd, a joint venture between the Group and Novum Alpha, plans to launch its first digital assets-based ETP on the SIX Swiss Exchange, Switzerland's principal stock exchange, to track the prices of the top cryptocurrencies. This will deepen the Group's position in the digital assets space and provide a separate investment vehicle for the subscribers of the ETP.
Green Energy REIT
The Group has established a Green Energy REIT which plans to take land that is undeveloped and unsuitable for residential or commercial use, and to develop green assets such as wind and solar farms. Undervalued and underdeveloped solar assets are also in the investment pipeline. These green energy sources will reduce reliance on fossil fuels in the communities near them and provide a steady passive income to investors through electricity generation.
1.3 Asset Management
True Partners Capital Holding Limited ('TP')
As of September 30, 2021, TP's assets under management stands at approximately US$1.7 billion. TP has agreed to a partnership with Nanhua Futures, the first listed Futures Company on the Shanghai Stock Exchange to potentially launch a new volatility fund. TP also plans to obtain an investment firm license from the Authority Financial Market ('AFM') in the Netherlands. The Group owns approximately 15.5% of TP.
American Pacific Bancorp ('APB')
During the year 2021, APB received a fresh injection of US$40 million in funds from DSS to support the growth of its loan portfolio. APB has since established a strong and diversified loan portfolio spanning across commercial licensed medical real estate financing, district bond anticipation note financing, C&I inventory and equipment financing, and land development loans. The Group is the second largest shareholder of APB.
1.5 Information Technology
Value Exchange International Inc. ('VEII')
GigWorld Inc., a subsidiary of Alset International Limited, acquired approximately 18% of VEII for US$650,000. VEII services 20,000 Point-of-Sale transactions daily and will provide a platform for the Group to expand in the E-Commerce business. VEII also supplements the Group's IT capabilities by providing services and solutions related to hardware and software.
In the nine months ended September 30, 2021, VEII generated approximately US$7.5 million in revenue and US$0.6 million in net profits which translates to an approximately 89% growth in net profit for the same period a year ago. In line with the encouraging financial performance, VEII distributed approximately US$0.2 million in dividends.
Agreement with Puradigm LLC ('Puradigm')
The Group entered into an agreement with Puradigm to secure innovative patented solutions for air and surface purification. These purifiers produce Non-Thermal Plasma particles to actively purify the air and surfaces from bacteria and viruses. A study by the University of Florida has shown data on the purifying technology deactivating the Covid-19 virus at an accelerated rate for the first 4 hours of exposure.
For more information, please visit: https://www.puradigm.com/
1.7 Food and Beverage
Killiney Koptiam's Franchise
The Group, through a subsidiary based in Singapore, acquired a restaurant franchise license in 4Q2021 and has since commenced operations. This license will allow our subsidiary to operate a Killiney Kopitiam restaurant in Singapore.
Killiney Kopitiam is a Singapore-based chain of mass-market, traditional kopitiam style service cafes selling toast products, soft-boiled eggs and coffee. Killiney Kopitiam was founded by Hainanese immigrants in 1919 and started their business along the busy streets of Killiney Road.
The Group is also planning to open a Hapi Café school in Salt Lake City, Utah to train staff and are preparing to launch the Group's Hapi Café concept in South Korea.
2) Reinforced Company's Cash Position
The Company has raised a total of approximately US$115 million in gross proceeds from its' initial public offering and secondary raises since November 2020.
The funds received from the fund raising activities have strengthened the Group's working capital and financial position.
3) Corporate Actions and Outlook
Looking ahead, we will continue to focus on developing and sourcing land around the US to build healthy and sustainable EHome communities to provide green energy, intelligent home systems and community facilities while expanding our portfolio of rental homes in AHR. In addition, our Group will step up the development of our clean energy and high tech farming segment to supplement our sustainable communities.
The Company's Chairman and Chief Executive Officer, Mr. Chan Heng Fai stated, 'I would like to thank the investors for their support of our Group for the past year. Alset will continue to build on our existing expertise and new business to develop sustainable healthy living ecosystems. We will constantly keep learning about the new technologies that will improve the community's lifestyle and the climate's detriments.'
About American Home REIT Inc.
AHR seeks to own and manage income-producing, high-yielding real estate in the US. In particular, AHR focuses on bulk purchases of large SFH communities that meet the investment requirements set by a team of highly experienced management and advisors. This includes an existing organic pipeline from the Group that is developing its master planned community, Alset at Black Oak (Magnolia, Texas) and other communities such as Northpark Woods (Porter, Texas). AHR will further acquire other SFHs in master planned communities to generate a steady income stream for investors. AHR targets to pay a quarterly dividend of up to 6% annualised yield.
For more information, please visit: www.americanhomereit.com.
About American Medical REIT Inc.
AMRE provides financing solutions to leading medical operators by acquiring licensed patient treatment facilities in various communities and delivering reliable, secure, and competitive cash returns to our investors. AMRE focuses on credit worthy single-tenant, single property transactions in the $10-$60M range and portfolio deals of larger scale, having initial rental yield in the 7-9% range and to pay a quarterly dividend up to 8% in annualized yield to the investors.
For more information, please visit: www.americanmedreit.com.
About Alset International Limited
Incorporated on 9 September 2009 and listed on the Singapore Exchange in July 2010, Alset International Limited operates as a global enterprise involved in (i) property development and investments primarily in the US; (ii) development, research, testing, manufacturing, licensing and distribution of biomedical products; (iii) asset management with a primary focus in the US medical and housing REIT space; (iv) direct sales of a variety of health and wellness products; (v) information technology-related businesses including blockchain technology and (vi) food and beverage business under the Group's hospitality segment.
About American Pacific Bancorp, Inc.
American Pacific Bancorp is a bank holding company, focused on the lending business and acquiring equity positions of commercial bank(s) in the United States. APB is managed by a team of bankers and entrepreneurs whose shared vision is to build a robust, integrated technologically advanced bank holding company. APB envisions establishing a unique, customer-centric, globally focused entity that provides banking services through digital channels.
For more information, please visit: https://www.amerpacbancorp.com/.
About DSS, Inc.
DSS is a multinational company operating business segments in blockchain security, direct marketing, healthcare, consumer packaging, real estate, renewable energy, securitized digital assets, securities trading and fund management, and banking, lending, and finance. Its business model is based on a distribution sharing system in which shareholders receive shares in its subsidiaries as DSS strategically unlocks value through IPO spin offs. Under new leadership since 2019, DSS has built the necessary foundation for sustainable growth through the acquisition and formation of a diversified portfolio of companies positioned to drive profitability in five high-growth sectors. These companies offer innovative, flexible, and real-world solutions that not only meet customer needs, but create sustainable value and opportunity for transformation.
For more information on DSS visit http://www.dssworld.com.
About Hapi Café
Hapi Cafe key mission is to promote health, wealth and happiness by transforming the way people eat, work and live, Hapi Café combines healthy food, fitness, business activities and leisure all in one location. We strive to create a conducive environment where everyone can gather to enjoy a healthy meal, work, keep fit and plan for the next travel destination.
For more information, please visit: https://www.hapicafes.com/
About Value Exchange International Inc.
VEII is a U.S. public holding company headquartered in Hong Kong, with offices in Shenzhen, Guangzhou, Shanghai, and Beijing China, Manila in the Philippines and Kuala Lumpur, Malaysia. Through its subsidiaries, VEII provides market-leading Point-of-Sale/Point-of-Interaction (POS/POI), Merchandising, CRM & Reward, Locational Based (GPS & Indoor Positioning System (IPS)) Marketing, Customer Analytics, and Business Intelligence solutions. VEII's retail POS solutions process tens of millions of transactions per year at approximately 20,000 retail outlets in Asia. VEII, through its operating subsidiaries, provides POS systems installation, maintenance, software, and systems support and solutions. Corporate customers of VEII include a diversified group of corporations in VEII's markets.
For more information, please visit: https://www.value-exch.com/
This press release includes statements that may constitute 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties that are often difficult to predict, are beyond our control, and which may cause results to differ materially from expectations. For a discussion of the most significant risks and uncertainties associated with the Company's business, please review our filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which are based on our expectations as of the date of this press release and speak only as of the date of this press release. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
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SOURCE: Alset EHome International Inc.
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