UCASU drops public offering plan and focuses on profit growth after $0.12 per share net income
Press Release | 07/29/2022
Atlanta, July 29, 2022 (GLOBE NEWSWIRE) -- UC Asset LP (OTCQX: UCASU) announces today that the company will adjust its business strategy for the next 12 months, focusing on cash income and profit growth, instead of capital formation.
UC Asset announced that it was seeking for an up-list to NYSE American or NASDAQ Small Cap, combined with a secondary public offering of approximately $10-30 million. The company confirms today that it is no longer the primary business goal for the next 12 months.
“After engaging with a number of investment bankers who are probably the best expertise in the small-cap market, we have concluded that, under the current macro economy and capital market situation, it is NOT in our best interest to raise a large amount of capital in the next few months,” says Larry Wu, founder of UC Asset. “Instead, we will focus our efforts on creating a recession-proof portfolio, maintaining a strong cash position, generating more cash income and growing our profit margins.”
Further, the company is considering a down-listing from its current quoted market OTCQX, which the OTC Group promotes as the “best market” of OTC markets.
“From the incorporation of our company, our goal has always been to build a billion-dollar business and list us on a major exchange such as NYSE or NASDAQ, and we always perceive OTCQX as a transit stop to our final destination,” says Wu. “If we are not moving up to a major exchange any time soon, it may NOT be financially savvy to continue bearing all the direct and indirect cost of using OTCQX quoting service.”
Meanwhile, the company’s business operation may get improved, and its profit margin may increase, once more managerial resources will be shifted from capital formation and back to operation management.
Greg Bankston, managing partner of UC Asset, reconfirms that the company is on the track to build a creative portfolio, of which cannabis properties will be the primary growing point.
“Cannabis properties are doing well at this moment, averagely yielding ROI almost twice of other commercial properties. And the best part is that they are recession-proof, i.e., they will perform as well, and perhaps even better, if US economy will experience a recession as many economists have predicted,” claims Bankston.
For the fiscal year of 2021, UC Asset reported a $0.12 per share net income, which represented a 330% net profit growth over the previous year. Operating profit, for the same period, reported a 73% growth over the previous year.
