Altisource Asset Management falls 59% as company considers EV investment

Shares of Altisource Asset Management are down 59% or $19.34 at $13.50 per share. In its Q2 earnings conference call, the company states: “As we review our lending business and as we continue our search for additional capital light asset management businesses that could be accretive to our business and shareholder value. We want to report an interesting opportunity. We recently received a proposal regarding a new technology developed by R&D venture led by AMC shareholder William Erbey. We invited Bill to join the call today to present this opportunity as he will explain this patented breakthrough technology is designed to substantially reduce energy loss and heat generation in electric vehicles, thereby increasing the range and efficiency given the enormous addressable EV market. These technology advances have significant upside potential. The opportunity is a pure intellectual property licensing play with low capital requirements. Structure and other details are still under discussion. But we have agreed in principle that the company’s upfront cash commitment would be zero. The company’s primary out-of-pocket expenses would be approximately 7 to 8 million in working capital over the next 18 to 24 months. These amounts would be expended as the technology is positioned for full commercialization. There would be a stock based earn out in increments of 10% of company stock earned when our share price exceeds $100. And as the share climbs above each $100 threshold thereafter, adjusted for appreciation attributed to lending.”