Alset

According to its prospectus, Alset Inc. (AEI) is a holding company that engages in business in the following industries through its subsidiaries and associated companies:

• Real estate
• Financial services
• Digital transformation technologies, including e-commerce and enterprise software
• Biohealth, including development of consumer products

Alset’s real estate developments include Alset EHomes (environmentally-friendly smart homes), clean energy projects, and single-family rental homes.

Additionally, Alset has ownership interests in a variety of companies spanning the financial services, food, and technology industries, among others.

The company’s stock prospectus states that it seeks to acquire “majority and/or control stakes in innovative and promising businesses,” but investors should be aware of the strategy-related risks associated with purchasing Alset’s stock.

Alset and Aegis Capital Corp.

Kurta Law is investigating high-risk investments underwritten by Aegis Capital Corp.  Brokerage firms profit from bringing stocks to market, creating a conflict of interest when they recommend the stocks that they underwrite.

Brokers who recommend risky investments may also violate securities regulations. Investors who believe their investment in Alset stock was unsuitably risky for their profile should consider pursuing FINRA arbitration.

Speak to a securities attorney today by contacting our team at (877) 600-0098 or emailing info@kurtalawfirm.com for a no-cost case evaluation.

What are the Risks Associated with Alset?

Though Alset maintains a diversified portfolio through its many subsidiaries and associates, investing in the company still comes with certain risks.

Lack of Dividends and Potential Mismanagement

Alset states in this prospectus that it has “no plans to pay dividends” on its common stock and intends to “retain future earnings, if any, to finance the expansion of our business.”

However, the prospectus also states that Alset’s management will have “broad discretion” in applying the proceeds from their stock offering and that the potential failure to use these proceeds effectively could cause the price of the stock to fall.

Risk of Economic Volatility

The prospectus notes that, as a real estate developer, Alset could be negatively affected by changes in the real estate industry due to unpredictable global changes like the COVID-19 pandemic and geopolitical concerns.

Economic volatility and a subsequent increase in interest rates could, according to Alset, “significantly harm [its] revenues, results of operations, financial condition, business prospects, and [their] ability to make distributions.”

Do You Have Concerns Related to Your Shares of Alset?

If you have concerns about your investment in Alset stock, reach out to a Kurta Law securities attorney today. Our securities attorneys have experience navigating FINRA arbitration and winning fair settlements for clients. Call (877) 600-0098 or email info@kurtalawfirm.com.