UCASU Management Intends to Diversify Its Capital Market Strategy

USA - English

• USA - English

ATLANTA, May 10, 2023 /PRNewswire/ -- UC Asset LP (OTCQB: UCASU) management announces that the general partner of the company, UCF Asset LLC, will consider a management buy-out (MBO) in the next 12 months. Management asserts that the company will continue to pursue a secondary public offering (SPO) in combination with an uplisting to major exchanges, although that management also sees MBO as an option.

"Our goal has been, and will always be, to build a hundred-million-dollar business in order to provide great returns to our investors," says Larry Wu, founder of UC Asset. "However, given today's macro-economy and capital market situation, we have to diversify our capital market strategy to consider other options for the benefits of our investors."   

The company has not disclosed any details of a possible MBO. Typically, MBO is a type of leveraged buyout, which is an acquisition of the company by its management team, funded primarily with borrowed capital.

Management insists that, at this moment, it is only an option on which the team will conduct further research, including to solicit interests from potential lenders. The company will not file any SEC reports, including but not limited to Form 8-K, on this matter while it is still a developmental stage idea. 

In the beginning of this year, UC Asset LP (OTCQB: UCASU) management announces that the company has jump-started its plan to up-list to a major exchange, probably NASDAQ or NYSE, after it had put on hold this plan for about six months.

"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 are able to achieve the economy scale with additional capital," Wu shares.

For this purpose, UC Asset plans to launch a SPO (secondary public offering) to raise $10 – 20 million. Wu indicates that it may also conduct a PIPE (private investment in public equity) raise prior to the SPO to raise $2 – 5 million. 

"All the fund-raising will not dilute the equity of current shareholders, as our bylaw expressly prohibits the company from issuing any stocks at a price lower than the company's net equity per share," asserts Wu. "Particularly, we will NEVER take any investments of toxic manner, such as convertible notes of variable conversion ratios." 

"We have been very disciplined in issuing shares," continues Wu. " Our total issued and outstanding shares have actually decreased since our IPO, from over 5.6 million shares to less than 5.5 million shares. And last year we cancelled all our preferred units of a total number of 166,667 shares. In short, the supply of our shares is very limited, and we have adequate room 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.  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.

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SOURCE UC Asset LP