Alset EHome International Inc. (AEI) plunged 35.31% in the premarket with 146.1 thousand shares at the last check, following the company’s public offering announcement. During the previous trading session, the stock lost a small 0.92% to close at $1.0800 on December 03. Following the news of a public offering by the company, the stock fell down to $0.6986 in premarket on December 06.

AEI and its Movement

Founded in 2018, Alset EHome International Inc. (AEI) the land development, tech, and health business holding company has a market capitalization of $49.38M. The company’s 45.72 million outstanding shares have fallen down by 26.03% in the past five sessions. Moreover, in the past month, AEI stock has lost 45.73% and almost 82% year to date.

While the stock already was trading in red, the company’s announcement of a $30 million public offering fueled its downfall. Hence, the stock so far has been falling big in the premarket on Monday.

Public Offering

On December 05, the company announced the pricing of underwritten public offering resulting in $30 million or $34.5 million in gross proceeds. According to the announcement, the offering comprises common stock at $0.60 per share price and a par value of $0.0001 per share. Further, it will also consist of warrants to purchase shares of the company’s common stock at $0.599 per warrant. The warrants would be pre-funded and will have a $0.0001 per share exercise price.

Moreover, a 45-day option to purchase up to 15% additional shares of the base offering of the company’s common stock was also granted to the underwriters.

According to AEI, subject to closing conditions, December 08, 2021, is the expected closing date of the offering.

AEI Recent Business Progress

On December 02, the company announced that its subsidiary Alset International Limited has completed seeding the first 30 rental homes to AHR. AHR is Alset International’s indirect subsidiary, American Home REIT. According to the announcement, AHR’s first 30 rental homes were occupied as of December 02.

AHR is under development by the AEI’s subsidiary as the owner and manager of Class A portfolio real estate

Financial Highlights

On August 19, AEI declared its financial results for the first half of 2021, which ended June 30, 2021. As per the first half of 2021, the revenue was $12.2 million, rising 142% from $7.2 million in the year-ago period.

As of June 30, 2021, the company had cash of $59.2 million approx., against $25.0 million on December 31, 2020.