Atlanta, GA -- January 3, 2022 -- InvestorsHub NewsWire
-- In the first business day of 2022, UC Asset LP (OTCQX:
UCASU) management announces that the company is seeking to
"uplist" to a major exchange; probably NASDAQ small cap or NYSE
American, in the next 12 to 18 months.
Currently, UC Asset is quoted on OTCQX, which is branded as the
"best market" among OTC markets operated by the OTC Market Group
Inc. The premium section of OTCQX holds a listing requirement very
similar to small cap sections of major exchanges such as NASDAQ or
NYSE.
"Except for our size, we believe we have met the criteria and
there are numerous factors that point to our firm being a likely
candidate to be listed on a major exchange," says Larry Wu, founder
of UC Asset.
"First, we have been quoted on OTCQX for two full years.
Particularly, we have gained an unprecedented amount of attention
from investors over the past several months, as our shares have
started being actively traded. Secondly, we voluntarily filed Form
10 in late 2020 to become a fully-reporting company. For the full
year of 2021, we have been filing quarterly to ensure our
disclosure meet the criteria of major exchange's requirements," Wu
explains.
"Thirdly, our company has consistent positive investment returns
for every year since our formation in 2016. Our worst year was
2020, due to the COVID pandemic, but we still managed to break even
with a small but noticeable gain. We had a good year in 2021 and
projected $0.10 - $0.15 per share of net gain, looking to deliver a
dividend of at least $0.10 per share. Looking towards 2022, we have
a great business plan in place, and are confident that we will
realize better return. It is time to move to a bigger platform to
continue our growth and pursue even greater goals."
However, Wu admits that the company is currently too small to
justify an uplisting, as a major exchange listing will be more
expensive, and will remarkably increase administration cost. Those
extra cost will be difficult for a small company like UC Asset to
absorb.
"In order to have a meaningful uplisting, we need to increase
the size of the company to at least $20 million, preferably over
$30 million. In other words, we'll need to double or even triple
our size," says Wu.
"Fortunately, our management team has an established strategy to
growth. We have identified deal pipelines with great
potential, mostly of cannabis properties, for a potential portfolio
expansion of $10 - $ 30 million. We have the right team to
manage them. We are confident we will be able to achieve the
economy scale with additional capital," Wu shares.
For this purpose, UC Asset plans to file S-1 to start a
secondary public offering within the year. The company has not
decided on the specifics of its secondary public offering, but
management says that the size of its secondary public offering will
likely range between $5 million - $10 million, and the offering
price will likely be around $2.5 per share.
"At this moment our shares are constantly traded around or above
$2 per share, and a prominent independent research agent, Zack
Small Capital Research, has set the target price for our share at
$4.5 per share. So there is no reason to believe that our offering
price will be lower than $2.5 per share, since our secondary public
offering will likely occur 12 months later," explains Greg
Bankston, managing general partner of UC Asset.
Before its secondary public offering, the company will seek
strategic investors to complete one or more rounds of private
placement. Bankston expects that the private placement will be
offered at a price considerably lower than its planned public
offering price, and, in the next few months, the company will be
open-minded to discuss potential private placements with any
accredited investors.
"We have been very disciplined in issuing shares to private
investors," says Bankston. " Our total issued shares have actually
decreased in the past two years since our IPO, from over 5.6
million shares to less than 5.5 million shares, and we have only
one round of preferred shares outstanding which can be converted
into less than 170,000 common shares. In short, the supply of our
shares are very limited, and we have adequate room to issue shares
to support our growth plan."
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:
Christal Jordan | Executive Director, UC Asset LP
cjordan@ucasset.com |
678-499-0297
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