Alset International and Alset Inc. Convert Over $3.8 Million of Debt into HWH International Stock

In a notable development, Alset International Ltd and Alset Inc., both of which have significant stakes in HWH International Inc., have collectively converted over $3.8 million of debt into shares of HWH International’s common stock. These transactions, carried out on September 24, 2024, were detailed in a recent filing.

Alset International Ltd converted $3,501,759 of debt into 5,558,347 shares of HWH International’s common stock, priced at $0.63 per share. At the same time, Alset Inc. converted $300,000 of debt into 476,190 shares at the same price. These conversions indicate the companies’ strong belief in HWH International and their commitment to its future.

As a result of these transactions, Alset International Ltd and Alset Inc. have significantly increased their holdings in HWH International. Following the conversion, Alset International Ltd holds a total of 16,458,347 shares, while Alset Inc. owns 19,264,692 shares. These figures encompass indirect ownership through majority interests and other subsidiaries, as noted in the filing.

Mr. Chan Heng Fai Ambrose, CEO of both Alset International Ltd and Alset Inc., and also a director and officer at HWH International, may be recognized as having beneficial ownership of the shares held by both entities. This total does not include the 13,000 shares of HWH International’s common stock personally owned by Mr. Chan.

The transactions were part of agreements allowing the conversion of outstanding debts into equity, thereby enhancing HWH International’s balance sheet.

Investors are closely monitoring these developments, as such conversions can often indicate strategic shifts within a company and the industry at large. The increased stakes held by Alset entities could hint at forthcoming integrated operations and collaborations.

In other pertinent news, HWH International has announced a significant debt conversion into equity, resulting in the issuance of 6,034,537 new shares to Alset International Limited and Alset Inc. This strategic move, involving a total of $3,801,759 in debt, intends to strengthen HWH International’s balance sheet by alleviating its debt load. The new shares will represent a 37.2% increase in the company’s total outstanding shares.

Meanwhile, HWH International is potentially facing delisting from the Nasdaq Global Market due to failing to meet the minimum market value and bid price requirements. The company has been granted a 180-day grace period to regain compliance, 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 achieved compliance within the established timeframe, prompting the initiation of the delisting process. However, the company plans to appeal these decisions, and during the appeal processes, its securities are expected to continue trading. These recent developments pose significant challenges for HWH International, as noted by its Chief Financial Officer, Rongguo Wei.

In light of the recent debt-to-equity conversions by Alset International Ltd and Alset Inc. in HWH International, investors may gain further context through specific metrics. Notably, HWH International recorded a substantial return over the past week, with a 10.95% increase in total price return, suggesting a potential rise in investor confidence following the conversions.

Currently, HWH International’s market capitalization is approximately $11.34 million, which may suggest both growth potential and the challenges the company faces. Additionally, the company experienced a 19.37% revenue growth over the last twelve months as of Q2 2024, indicating some positive momentum in its sales. However, concerns may arise due to its lack of profitability during this period, reflected in a negative P/E ratio of -1.09 and an adjusted P/E ratio of -4.17, metrics closely scrutinized by potential investors.

HWH International’s stock price has also seen significant decline over the past year, with a year-to-date total return of -93.21%, which may heighten concerns regarding its performance.

For those interested in a thorough analysis, further insights into the company’s financial status and market behavior can be obtained through additional available resources.