In a significant move, Alset International Ltd and Alset Inc., both holding substantial ownership in HWH International Inc. (OTC:HWHI), have converted a combined total of over $3.8 million of debt into shares of HWH International's common stock. The transactions, executed on September 24, 2024, were disclosed in a recent filing.
Alset International Ltd, converted $3,501,759 of debt into 5,558,347 shares of HWH International's common stock at a price of $0.63 per share. Concurrently, Alset Inc. converted $300,000 of debt into 476,190 shares at the same price. These conversions reflect the companies' confidence in HWH International and their commitment to the company's future.
The transactions have resulted in Alset International Ltd and Alset Inc. increasing their holdings in HWH International significantly. Following the conversion, Alset International Ltd's beneficial ownership in HWH International stands at 16,458,347 shares, while Alset Inc.'s ownership is at 19,264,692 shares. These figures include indirect ownership through majority interests and other subsidiaries, as noted in the footnotes of the filing.
The CEO of both Alset International Ltd and Alset Inc., Mr. Chan Heng Fai Ambrose, who is also a director and officer at HWH International, may be deemed to have beneficial ownership of the shares owned by both entities. This does not include 13,000 shares of HWH International's common stock that Mr. Chan owns personally.
The transactions were part of debt conversion agreements between HWH International and the two companies, which allowed for the conversion of outstanding debts into equity, thus strengthening the balance sheet of HWH International.
Investors are keeping a close eye on these developments, as such conversions can often signal strategic shifts within a company and the broader industry. The increased stake of Alset entities in HWH International could be a harbinger of more integrated operations and collaborations in the future.
In other recent news, HWH International has announced a significant debt conversion into equity, issuing 6,034,537 new shares to Alset International Limited and Alset Inc. This strategic move, involving a total of $3,801,759 in debt, is aimed at strengthening HWH International's balance sheet by reducing its debt burden. The new shares will account for a 37.2% increase in the total outstanding shares of the company.
Simultaneously, HWH International is facing potential delisting from the Nasdaq Global Market due to failing to meet the minimum market value and bid price requirements. The company has been offered a 180-day grace period to regain compliance for both issues, requiring a closing bid price of at least $1 for a minimum of ten consecutive business days and a minimum market value of $50,000,000.
Despite efforts, HWH International has not regained compliance within the given timeframe, initiating the delisting process. However, the company plans to appeal these decisions. During both appeal processes, HWH International's securities are expected to continue being traded. These recent developments present significant challenges for HWH International, as confirmed by its Chief Financial Officer, Rongguo Wei.
InvestingPro Insights
In the wake of the recent debt-to-equity conversions by Alset International Ltd and Alset Inc. in HWH International Inc. (OTC:HWHI), investors may find additional context through specific metrics and InvestingPro Tips. Notably, HWH International has experienced a significant return over the last week, with a 10.95% increase in price total return, reflecting a potential uptick in investor confidence following the conversions. This aligns with the InvestingPro Tip highlighting the stock's tendency for high price volatility, which suggests that investors should be prepared for fluctuations in the stock price.
An analysis of the company's financial health reveals that HWH International's market capitalization currently stands at a modest 11.34 million USD, which may indicate room for growth or, conversely, a reflection of the challenges the company faces. Additionally, the revenue growth over the last twelve months as of Q2 2024 was 19.37%, suggesting some positive momentum in the company's ability to increase sales. However, the company's non-profitability over the last twelve months should be taken into consideration, as indicated by the negative P/E ratio of -1.09 and an adjusted P/E ratio for the same period of -4.17, which are metrics that potential investors often scrutinize.
Moreover, HWH International's stock price has seen a significant decline over the past year, with a year-to-date price total return of -93.21%, which may raise concerns about the stock's performance. This aligns with the InvestingPro Tip that the stock price often moves in the opposite direction of the market, suggesting that the stock may not always align with broader market trends.
For investors interested in a deeper analysis, there are additional InvestingPro Tips available on the platform, which can provide further insights into the company's financial status and market behavior. The platform currently lists several more tips that could be relevant to investors considering a stake in HWH International.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.