Alset Inc. (NASDAQ:HWH) has made a significant purchase of common stock in HWH International Inc., acquiring 4,411,764 shares for a total of approximately $2.99 million. The shares were bought at a price of $0.68 each, according to a recent SEC filing.
This acquisition increases Alset Inc.'s beneficial ownership in HWH International to a total of 23,676,456 shares. The transaction was executed on November 25, 2024, under a Stock Purchase Agreement between Alset Inc. and HWH International.
Chan Heng Fai Ambrose, who serves as the Chairman, Chief Executive Officer, and majority stockholder of Alset Inc., may be deemed to possess beneficial ownership of the shares acquired by Alset Inc. Through various holdings, including direct ownership and subsidiaries, Alset Inc. now holds a significant stake in HWH International.
This strategic move reflects Alset Inc.'s ongoing investment in HWH International, a company involved in the wholesale of drugs and proprietary products.
In other recent news, HWH International, a wholesale pharmaceutical distributor, has made significant financial maneuvers. The company has sold 4,411,764 shares of its common stock to its majority shareholder, Alset Inc., a move aimed at bolstering HWH's financial position and supporting its growth initiatives. In a parallel development, HWH has converted $3,801,759 of its debt into equity, issuing 6,034,537 new shares to Alset International Limited and Alset Inc., thus reducing its debt load.
Despite these strategic moves, HWH International is grappling with compliance issues related to Nasdaq's listing requirements. The company has received a notice from the Nasdaq Hearings Panel, granting it more time to meet the exchange's listing requirements. This comes after HWH International failed to meet the minimum market value of publicly held shares and minimum market value of listed securities required for continued listing on The Nasdaq Global Market.
However, HWH International faces potential delisting from the Nasdaq Global Market due to failing to meet the minimum market value and bid price requirements. The company has been given a 180-day grace period to regain compliance but has not managed to do so within this timeframe. Nevertheless, HWH International plans to appeal these decisions. These are the latest developments in HWH International's ongoing efforts to satisfy regulatory standards and continue its operations.
InvestingPro Insights
Alset Inc.'s recent acquisition of HWH International Inc. shares comes at a time when HWH's stock has experienced significant volatility and downward pressure. According to InvestingPro data, HWH's stock price has fallen dramatically, with a one-year price total return of -94.63% as of the most recent data. This context adds weight to Alset Inc.'s decision to increase its stake, potentially viewing the current price as an attractive entry point.
InvestingPro Tips highlight that HWH "operates with a moderate level of debt" and "is not profitable over the last twelve months." These factors may have influenced Alset Inc.'s strategy, possibly seeing an opportunity to inject capital and influence the company's direction. The stock's high price volatility, as noted by another InvestingPro Tip, aligns with the significant price movements observed in recent periods.
Despite the challenges, HWH has shown promising revenue growth, with a 44.55% increase over the last twelve months and a 52.28% quarterly growth in Q3 2024. This growth trajectory could be a key factor in Alset Inc.'s investment decision, potentially anticipating a turnaround in HWH's fortunes.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for HWH, providing deeper insights into the company's financial health and market position. These additional tips could prove valuable for understanding the full context of Alset Inc.'s investment and HWH's future prospects.
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