Form 4: Alset Inc. Acquires Convertible Promissory Note in Value Exchange International, Inc.

Alset Inc., a 10% owner of Value Exchange International, Inc., acquired a $30,000 convertible promissory note that can be converted into VEII common stock at $0.0166 per share.

Summary

• On March 28, 2025, Alset Inc. received a $30,000 convertible promissory note from Value Exchange International, Inc. (VEII) as consideration for a loan of the same amount.
• The note can be converted into VEII common stock at a price of $0.0166 per share within a two-year period.
• Chan Heng Fai Ambrose, a director and 10% owner of VEII, is also the majority shareholder, Chairman, and CEO of Alset Inc., holding dispositive control over the securities.
• The transaction was reported in a Form 4 filing with the SEC.

Sentiment

Score: 6

Explanation: The sentiment is neutral. It's a standard financial transaction (convertible note). The impact depends on the future performance of VEII and Alset's decision to convert.

Positives

• Alset Inc. has the option to convert the debt into equity, potentially increasing its stake in VEII.
• VEII receives a $30,000 loan.

Negatives

• The conversion of the note could dilute existing VEII shareholders.

Risks

• The value of VEII's common stock could fluctuate, affecting the potential return on the convertible note.
• Alset Inc.'s decision to convert the note will depend on VEII's performance and market conditions.

Future Outlook

Alset Inc. has the option to convert the $30,000 note into VEII common stock within two years, depending on market conditions and the company's strategic objectives.

Industry Context

Convertible notes are a common financing tool for smaller companies, allowing them to raise capital without immediately diluting existing shareholders. The terms of the note, including the conversion price, are crucial in determining the potential impact on both the issuer and the investor.

Comparison to Industry Standards

• The use of convertible notes is a fairly standard practice for small-cap companies seeking funding, similar to companies like MicroVision (MVIS) and FuelCell Energy (FCEL) who have used convertible notes to finance operations.
• The conversion price of $0.0166 per share would need to be evaluated against the current and projected market price of VEII to determine the attractiveness of the conversion option for Alset Inc.

Related Party Transactions

• Chan Heng Fai Ambrose's dual role as a director and 10% owner of VEII and the majority shareholder, Chairman, and CEO of Alset Inc. constitutes a related-party transaction.

Stakeholder Impact

• Existing VEII shareholders could experience dilution if Alset Inc. converts the note into common stock.
• VEII benefits from the $30,000 loan provided by Alset Inc.

Next Steps

• Alset Inc. will monitor VEII's performance and market conditions to determine whether to convert the promissory note into common stock.
• VEII will utilize the $30,000 loan for its operational needs.

Key Dates

Keywords

Convertible Promissory Note, Alset Inc., Value Exchange International, VEII, Chan Heng Fai Ambrose, Form 4, SEC, Ownership, Equity, Debt