UC Asset LP (OTCQB: UCASU), a real estate investment firm headquartered in Atlanta, announced plans to launch a secondary public offering (SPO) under Reg A Tier II, aiming to raise up to $10 million. The capital will primarily target cannabis properties, leveraging favorable market conditions and a proven track record in this niche sector.
Cannabis Properties: A Strategic Focus
UC Asset’s decision to channel the majority of funds into cannabis real estate is backed by its current $1.6 million equity in the sector. The portfolio generates a 14.4% cash return, alongside opportunities for property value appreciation.
The company’s founder, Dr. Larry Wu, reflected on a prior attempt in 2022 to raise capital for cannabis property investment, which was ultimately postponed. “At the time, we lacked the history to demonstrate success in managing cannabis real estate,” Wu admitted. “Now, with solid results and what we believe to be an outperformance relative to peer asset managers, we are confident in moving forward.”
Wu also underscored that the timing aligns with market dynamics. Cannabis property prices, according to Wu, may have hit their historical low, setting the stage for significant growth as the cannabis industry rebounds.
An 8% Dividend to Sweeten the Deal
The offering, if launched, will include preferred shares carrying an annual dividend of 8%. This figure notably outpaces the average dividend yield of publicly traded U.S. equity REITs, which stood at 3.94% as of December 2024, according to S&P Global Market Intelligence.
While these preferred shares won’t initially be publicly traded, Wu highlighted an option for conversion into common shares after a six-month holding period. UC Asset’s common shares currently trade on the OTCQB market, offering investors a pathway to liquidity.
Navigating the Platform Options
UC Asset has reached out to leading Reg A platforms to facilitate the SPO. Wu confirmed the company’s preference for working with one of the top four platforms based on their 2024 fundraising performance. However, he noted the possibility of partnering with an investment bank or exploring other avenues if necessary.
“We’re committed to selecting a reliable partner for this initiative,” Wu said, cautioning that no definitive agreements have been signed yet.
Proven Strategies and Market Expertise
UC Asset has established itself as an innovator in real estate investment, particularly through its cannabis-focused strategy. Dr. Wu views the SPO as an opportunity to scale operations while capitalizing on a maturing cannabis market.
Investors seeking high-yield opportunities in alternative real estate sectors may find UC Asset’s offering particularly appealing, as the company positions itself at the crossroads of market recovery and niche expertise.
Jane Smith is a seasoned article writer specializing in cannabis-related content. With a keen focus on the latest trends, research, and developments in the cannabis industry, she brings a fresh perspective to her writing. Jane’s insightful articles delve into the medicinal benefits, legalization efforts, and evolving culture surrounding cannabis. Her engaging storytelling and informative approach make her a trusted source for readers seeking accurate and up-to-date information on all things cannabis.
