Alset EHome International Inc. Prices $32 Million Underwritten Public Offering of Common Stock and Pre-Funded Warrants

Rhea-AI Summary

Alset EHome International Inc. (NASDAQ:AEI) announced a public offering of 6,434,139 shares of common stock priced at $2.12 per share, aiming to raise approximately $32 million. Additionally, the company offered pre-funded warrants for 8,660,200 shares at $2.11 each, with an exercise price of $0.01 per share. If the underwriters exercise their option for over-allotments, gross proceeds could reach $36.8 million. Closing is expected on July 30, 2021.

Positive

• Gross proceeds from the offering expected to be approximately $32 million, potentially $36.8 million with over-allotments.
• Intended use of funds can support growth across various segments, including property development and digital transformation.

Negative

• Issuance of new shares may lead to shareholder dilution.
• Potential risks associated with market conditions could affect the completion of the offering.

BETHESDA, MD / ACCESSWIRE / July 27, 2021 / Alset EHome International Inc. (NASDAQ:AEI) (the "Group" or "Company"), a diversified holding company principally engaged through its subsidiaries in the development of EHome communities and other property development, financial services, digital transformation technologies, biohealth activities and consumer products, today announced the pricing of an underwritten public offering (the "Offering") of 6,434,139 shares (the "Shares") of common stock, par value $0.001 per share ("Common Stock"), to be issued by the Company, at a price to the public of $2.12 per Share, and pre-funded warrants to purchase 8,660,200 shares of the Common Stock at a price of $2.11 per pre-funded warrant. The pre-funded warrants have an exercise price of $0.01 per share. The gross proceeds from the Offering, before deducting underwriting discounts and commissions and estimated Offering expenses, are expected to be approximately $32 million.

In addition, the Company granted the underwriters a 45-day option to purchase additional shares of Common Stock, representing up to 15% of the number of the Shares and the shares underlying the pre-funded warrants sold in the base offering, solely to cover over-allotments, if any, which would increase the total gross proceeds of the Offering to approximately $36.8 million, if the over-allotment option is exercised in full.

The Offering is expected to close on July 30, 2021, subject to the satisfaction of customary closing conditions.

Aegis Capital Corp. is acting as sole book-running manager for the Offering.

The securities described above are being offered by Alset EHome International Inc. pursuant to an effective registration statement on Form S-1 (No. 333-258139) previously filed with the U.S. Securities and Exchange Commission (the "SEC") and declared effective by the SEC on July 27, 2021. A final prospectus (the "Prospectus") describing the terms of the proposed Offering will be filed with the SEC and will be available on the SEC's website located at http://www.sec.gov. Electronic copies of the Prospectus may be obtained, when available, by contacting Aegis Capital Corp., Attention: Syndicate Department, 810 7th Avenue, 18th floor, New York, NY 10019, by email at syndicate@aegiscap.com, or by telephone at (212) 813-1010. Before investing in this Offering, interested parties should read in their entirety the Prospectus and the other documents that the Company has filed with the SEC that are incorporated by reference in such Prospectus, which provide more information about the Company and such Offering.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sales of the securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Alset EHome International Inc.

Alset EHome International Inc. is principally engaged in developing, selling, managing, and leasing residential properties in the United States, and may expand from residential properties to other property types. Currently, its two flagship developments are Alset at Black Oak situated in Magnolia, Texas, north of Houston and Ballenger Run situated in Frederick County, Maryland USA. Together with partners including NVR, Inc. and Rausch Coleman Homes, over 750 homes have already been delivered at these two projects.

Forward-Looking Statements

This press release includes statements relating to the size of the Offering, the completion of the Offering and the expected closing date of the Offering. These statements and other statements regarding the Company's future plans and goals 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. Factors that could cause our results to differ materially from those described include, but are not limited to, the expected timing of the closing of the Offering and risks and uncertainties associated with market conditions and the satisfaction of customary closing conditions related to the Offering. 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.

Investor & Public Relations Contact Info

Dave Gentry, CEO
Phone: 407-491-4498
Email: dave@redchip.com

SOURCE: Alset EHome International Inc.

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FAQ

What is the public offering price for Alset EHome International's shares?

Alset EHome International has priced its shares at $2.12 each in the public offering.

How many shares are being offered by Alset EHome International?

The company is offering 6,434,139 shares of common stock.

What are the expected proceeds from Alset EHome's public offering?

The expected proceeds from the offering are approximately $32 million, or $36.8 million if the over-allotment option is fully exercised.

When is the expected closing date for the public offering of Alset EHome?

The expected closing date for the public offering is July 30, 2021.

Who is managing the underwritten public offering for Alset EHome International?

Aegis Capital Corp. is acting as the sole book-running manager for the offering.