UC Asset's Public Offering Shows Significant Improvement in Financials as Acquisition Targets Yield Better Results

UC Asset Reports Improvement in Financial Performance

On July 1, 2025, UC Asset LP (OTCQB: UCASU) shared exciting news about its forthcoming secondary public offering (SPO) through an amendment to Form 1A. This amendment outlines significant enhancements in the financial results of its acquisition target, which has steadily transformed UC Asset's investment outlook.

The SPO aims to raise $10 million through preferred shares that feature an annual dividend of 8%. A substantial portion of these funds is earmarked for acquiring additional cannabis properties. Specifically, UC Asset is focusing on two distinct groups of properties comprising 25 units, spanning a total area of 37,800 square feet.

Projected Revenue Growth and Recovery

According to reports from the current property owners, net operating revenue from these properties reached $137,000 in just the first five months of 2025. If this upward trend continues, UC Asset could see an annualized operating profit of approximately $330,000 for 2025, signifying an impressive 109% growth compared to last year. This recovery is particularly notable, given that the operating profit had previously plummeted in 2024, following a peak of $547,000 in 2023.

Earlier this year, UC Asset entered a non-binding Letter of Intent (LOI) with the current property owners to acquire both groups of properties for an estimated price of $3 million.

Seizing the Moment in the Cannabis Industry

Larry Wu, the founder of UC Asset, emphasized the significance of this period for cannabis-related investments: "Many cannabis operators have experienced tough times recently, but we believe the market has hit rock bottom, driving property values to historical lows. The improved financial performance of these properties aligns with our belief that a burgeoning growth wave is about to hit the cannabis industry."

Despite a 109% increase, the operating revenue still sits at only 60% of its peak performance from two years ago, reinforcing UC Asset's opportunity to acquire these properties at favorable prices. According to Wu, acquiring undervalued cannabis properties now could pave the way for a surge in financial performance by another 80-100% in the coming years. However, he cautions that this opportunity may not last long, urging swift action.

Financial Performance and Dividends

If qualified by the SEC and other regulatory bodies, UC Asset's offering of preferred shares will distribute an 8% annual dividend, contingent on profitability. As of now, this dividend rate far exceeds the average total returns of REITs, which stood at about 4.9% for 2024.

Wu states, "Based on our target acquisition price and projected operating revenue, we're optimistic that our investment will generate enough profit to cover the 8% dividend distribution." The current projected annual operating profit from these two groups of properties would approximate 11% of the anticipated acquisition price, indicating a sound financial structure for this venture.

For Further Insights

Those interested in learning more about the supposed SPO, its investment approach, potential returns, and risks can refer to the complete offering statement posted with the SEC, accessible via the company's EDGAR page on the SEC.gov website. It's essential to keep in mind that the filing is under SEC review, and no securities will be offered until the SEC qualifies the offering statement.

About UC Asset LP

UC Asset LP is a limited partnership trailblazing its path in real estate investment with innovative strategies. More information about UC Asset can be found on their website, www.ucasset.com.

Disclaimer

This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements encompass known and unknown risks, uncertainties, and other vital factors that could lead to substantial differences between UC Asset's actual results and those predicted. Stakeholders are warned against placing undue reliance on any forward-looking statements, and UC Asset undertakes no obligation to update or revise these statements after the release date.