Alset executes binding term sheet to acquire 41.5% interest in New Energy

Alset announced the signing of a binding term sheet to acquire 100% of New Energy Asia Pacific. NEAPI owns approximately 41.5% of New Energy Asia Pacific Limited, a Hong Kong company. New Energy focuses on distributing all-electric versions of special-purpose and transportation vehicles, charging stations and batteries. NEAPI will be acquired from Mr. Heng Fai Chan, the Company’s Chairman, CEO and largest stockholder. The consideration for the acquisition will consist of a convertible note in the amount of $103.75 million U.S. Dollars to be issued by the Company to the seller. Such convertible note will have a five year term and an interest rate of three per year. The note may be converted into shares of the Company’s common stock by either party, at any time during the term of the note. The conversion price for such note has been set at $12.00 per share which is equivalent to approximately 16 times the last market trading price of AEI of $0.75 as of December 12, 2023. The closing of this acquisition will be subject to certain standard closing conditions. Currently, New Energy has a strong pipeline of demand, with signed collective sales secured via Memorandums of Understanding totalling up to $42 million in value and continues to garner strong interest from local government departments and market demand. New Energy will seek to significantly increase revenues in the coming months relating to both electric chargers and electric vehicles