ATLANTA, Jan. 3, 2022 /PRNewswire/ -- 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
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
firstname.lastname@example.org | 678-499-0297
SOURCE UC Asset LP