Alset Inc. Announces Execution Of Binding Term Sheet To Acquire 41.5% Interest In Company Engaged In Distribution Of Electric Vehicles And Charging Stations; Consideration For The Acquisition Will Consist Of A Convertible Note In The Amount Of $103.75M
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Alset Inc. (NASDAQ:AEI) has signed a binding term sheet to acquire 100% of New Energy Asia Pacific Inc. (NEAPI), which owns a 41.5% stake in New Energy, a distributor of electric vehicles and charging stations. The acquisition, valued at $103.75 million, will be paid through a convertible note with a five-year term and a 3% interest rate. The note's conversion price is set at $12.00 per share, significantly higher than AEI's last trading price of $0.75. New Energy has a strong demand pipeline with MOUs worth $42 million and plans to expand its revenue streams. The acquisition aligns with AEI's commitment to sustainable solutions.
December 13, 2023 | 2:03 pm
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Alset Inc. is acquiring a significant stake in an EV distribution company, which could enhance its product offerings and market presence in the sustainable technology sector. The acquisition is a strategic move to align with global eco-friendly trends.
The acquisition is likely to have a positive short-term impact on AEI's stock price as it expands the company's footprint in the sustainable technology market, which is in high demand. The deal could be seen as a growth catalyst, although the conversion price of the note is significantly higher than the current trading price, which might raise concerns about dilution among existing shareholders.
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