UC Asset sold farmland for $550K gross profit, halfway through its annual profit goal of $1 million

Rhea-AI Summary

UC Asset LP (OTCQB: UCASU) has completed the sale of a 72-acre farmland in Dallas, Texas, for $1.91 million in cash. Originally acquired for about $800,000 in 2016, the land was sold at $1.30 million in 2020 and repurchased in 2021 for $1.35 million. The transaction results in approximately $550,000 in gross profit for UC Asset, which has no debt on the property, ensuring all proceeds will contribute to the company's net profit. The firm aims for a $1 million gross profit in 2023, with ongoing deals projected to bolster performance. With 5.3 million shares outstanding, gross profit allocation may approach $0.20 per share for common shareholders.

Positive

• Generated approximately $550,000 gross profit from the land sale.
• No debt against the sold property, ensuring full profit retention.
• Achieved significant progress towards the 2023 gross profit goal of $1 million.

Negative

• None.

Atlanta, Jan. 18, 2023 (GLOBE NEWSWIRE) -- UC Asset LP (OTCQB: UCASU) announces today that the company has closed transaction to sell one of its properties, a 72-acre farmland in the metropolitan area of Dallas, Texas, at the final price of $1.91 million. The sale is a cash deal.

UC Asset acquired the land in October 2016 for approximately $800,000. It sold the property to a local company at $1.30 million in 2020, only to buy it back one year later, in the spring of 2022, at $1.35 million. US Asset will book approximately $550,000 of gross profit from this sale.

UC Asset carries no mortgage loan or any other debt against the land. Therefore, all sales proceeds will become net proceeds to UC Asset, after deduction of small amount of fees and taxes.

“Early this month, we have declared that our company aimed to achieve about $1 million gross profit for the year of 2023. By closing this deal, we have been halfway through to reach that goal, in the very first month of the year,” asserts Greg Bankston, managing partner of UC Asset. “With a pipeline of deals in our hands, we are optimistic about our performance in 2023.”

The company currently has about 5.3 million shares outstanding. It is expected to acquire a $3 million cannabis property, and will issue 2.5 million preferred shares for that acquisition. However, those preferred shares will receive no dividends. If the company reaches its goal of $1 million gross profit, it will all be allocated to its common shareholders. In that scenario, gross profit allocated to common shareholders will be close to $0.20 per share.     

About UC Asset LP

UC Asset LP is a limited partnership formed for the purpose of investing in real estate with innovative strategies, concentrating in metropolitan areas of Atlanta, GA.  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

FAQ

What was the sale price of the UC Asset farmland in Dallas?

The farmland was sold for $1.91 million.

What profit did UC Asset make from the sale of the Dallas property?

UC Asset made approximately $550,000 in gross profit from the sale.

What is UC Asset's gross profit target for 2023?

UC Asset aims for a gross profit of $1 million for the year 2023.

How many shares does UC Asset currently have outstanding?

UC Asset has about 5.3 million shares outstanding.

What will happen to the gross profit if UC Asset reaches its 2023 target?

If the target is reached, approximately $0.20 per share will be allocated to common shareholders.