Uc Asset Com - UCASU STOCK NEWS

UC Asset LP (OTCQB: UCASU) has announced plans for a secondary public offering (SPO) through Reg A Tier II registration, aiming to raise up to $10 million by issuing preferred shares. The company intends to use the majority of funds to expand its cannabis property portfolio, where it currently holds $1.6 million in equity generating a 14.4% cash return.

The preferred shares will carry an 8% preferred dividend per annum, significantly higher than the average REIT dividend yield of 3.94%. While these preferred shares won't be publicly traded initially, they can be converted into common shares after a 6-month holding period. The company is in talks with leading Reg A platforms, likely to partner with one of the top 4 platforms by capital raised in 2024.

UC Asset LP (OTCQB: UCASU) has announced plans to acquire another publicly-traded company with a larger shareholder base and higher trading volume. The company aims to address its current low trading activity, which stems from having fewer than 200 shareholders since its Reg A IPO. Larry Wu, the company's founder, explains that their tight capital structure has resulted in market attention and frequently zero daily trading volume.

The proposed acquisition would be similar to a reverse merger, where UC Asset would acquire a public company through a security exchange deal. The target company should ideally have minimal business activity but a large shareholder base, preferably from the real estate industry. The company has begun searching for potential targets but has not set a timeline for completion.

UC Asset LP (OTCQB: UCASU) has announced a management stock buyback plan, as disclosed in their recent Form 1-U filing with the SEC. The company's general partner members intend to purchase shares on the open market throughout the remainder of 2024 and potentially into 2025. Concurrently, UC Asset has cancelled its previously announced company stock repurchase program due to regulatory constraints and bylaw limitations.

Founder Larry Wu explained that company buybacks are subject to strict regulations, including price and volume limitations, which made it impractical for UC Asset given its low trading volume. Additionally, the company couldn't secure majority shareholder approval for necessary bylaw amendments. The management buyback, however, is not subject to the same restrictions and will be conducted at the discretion of the purchasing general partner members.

UC Asset LP (UCASU) expects to report $190,000 of net income, or $0.03 per share, for 2023. The company has a history of profitability, with net profits in most fiscal years. Despite a loss in 2022 due to economic changes, it plans to buy back shares.

UC Asset LP (OTCQB: UCASU) has filed with the SEC to launch a stock buyback program. The program authorizes the repurchase of outstanding common units over 12 months, using open market purchases. The total amount will not exceed the net income of the company in 2023, at prices no more than the lowest ask price at the time of purchase. The company has a solid business model, reporting profits in most years and making two dividend distributions, the most recent in 2023 at $0.10 per share. Despite this, the trading activity of common shares does not consistently correlate with profitability, leading management to use part of the net cash inflow to buy back stocks.

UC Asset LP announces plan to buy back stocks using cashflow from net profit. New investment strategy focuses on income-producing properties, including cannabis properties and short-term rentals. Management believes net equity per share will be a good indicator for buyback price. Buyback plan may face regulatory and procedural challenges.

UC Asset LP (OTCQB: UCASU) has entered into a MOU to build an 8,000 sq ft cannabis property in Oklahoma. The tenant will pay a monthly rent of $20,000, with a 3-month grace period at a 50% discount. The property will have more than 4 growing rooms and can support a monthly harvest of 150 to 200 pounds of medical marijuana. UC Asset believes building properties instead of buying will save costs and provide a competitive advantage. The property will be located in Edmond, Oklahoma, and UC Asset is one of the four public companies in the US investing in cannabis properties.

UC Asset LP confirms solid progress in renovating Rufus Rose House. Exterior cannot be changed due to landmark status. Interior renovations include reframing and utilities restoration. Company working on obtaining permit for exterior works. Property to become state-of-the-art office building and landmark attraction.

UC Asset LP's half year performance exceeds expectations of a third-party analyst, Litchfield Hills Research, who reiterated a 'Buy' rating and a target price of $4.00 per share. The report states that UC Asset is 'exceeding expectations' and is undervalued, trading at a 22% - 68% discount to peer companies in the cannabis industry.