UC Asset Initiates a New Phase with Secondary Public Offering through Reg A Tier II

UC Asset's New Offering for Cannabis Properties

UC Asset LP (OTCQB: UCASU) has made headlines with its announcement regarding a secondary public offering (SPO) via Reg A Tier II registration. This strategic move aims to raise up to $10 million primarily targeted towards expanding their portfolio of cannabis properties. The company currently holds an equity stake of $1.6 million in this sector, yielding a notable cash return of 14.4%, alongside potential appreciation benefits from the properties.

Back in 2022, UC Asset highlighted plans to raise a similar amount to invest in cannabis properties, but the initiative was put on hold after a thorough review. Dr. Larry Wu, the founder of UC Asset, explained, "We understood that our record in managing a portfolio of cannabis property was not established back then. However, now we can demonstrate a successful track record, particularly as we believe our performance has outstripped many of our peers in the public market. It’s time to re-ignite our SPO initiative."

Dr. Wu further noted that the current market conditions present a favorable environment for investing in cannabis properties, suggesting that property prices may have reached historic lows. This aspect, combined with the overall readiness of the cannabis industry for another growth surge, makes this an opportune moment for such investments.

Preferred Shares with Competitive Dividends

Should this offering move forward, UC Asset plans to issue preferred shares that will come with an enticing preferred dividend of 8% per annum. Dr. Wu pointed out, "This rate outstrips the average dividend yield offered by U.S. equity REITs, which was recently noted at 3.94% per a survey conducted by SP Global Market Intelligence on December 11, 2024."

While the preferred shares will not be publicly traded, there is an advantage; they can be converted into common shares following a 6-month holding period. Currently, UC Asset’s common shares are trading on OTCQB, adding a layer of liquidity down the line for investors.

Collaborations with Reg A Platforms

Regarding the execution of this offering, Dr. Wu confirmed that UC Asset is in discussions with several prominent Reg A platforms that rank among the top four in capital capital raised during 2024. However, he added a note of caution, stating that no definitive agreements have been reached with any of these platforms yet. In the alternative, the possibility of collaborating with a conventional investment bank for this SPO is still on the table.

About UC Asset LP

Founded to pioneer investment strategies in real estate, UC Asset LP has been carving out its niche in the cannabis property sector. For more information, you can visit www.ucasset.com.

The announcement from UC Asset brings renewed hope for cannabis investors, as the company aligns itself with a promising market landscape and offers competitive investment opportunities. However, as with any investment, potential investors are encouraged to conduct thorough research and consider risks associated with venture capital and public offerings.