UC Asset announces plan of management stock buyback

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Sep 03, 2024, 09:39 ET

ATLANTA, Sept. 3, 2024 /PRNewswire/ -- UC Asset LP (OTCQB: UCASU) announces today that the company's management team intends to buy back its shares on the open market. The plan is included in its Form 1-U filed to SEC last Friday.

According to its Form 1-U, some members of UC Asset's general partner will purchase shares of the company on the open market in the rest of the year 2024, and may continue doing so in the year 2025.

In the same Form 1-U, it is also announced that the company has cancelled its stock repurchase program, which was first announced in January 2024.

"Company buyback is subject to certain laws and regulations such as Rule 10b-18 ("Safe Harbor" for Issuer Repurchases) of the Security Act. It limits the price of buyback to not higher than the highest independent bid or the last independent transaction price. Also, it limits the total volume of buyback on any single day to no more than 25% of the average daily trading volume," explains Larry Wu, founder of UC Asset. "Since the average daily trading volume of our shares is close to zero in the past months, it is practically impossible for the company to effect any stock buybacks following this specific rule."

"Besides, there are certain articles in our bylaw that can be interpreted as prohibiting stock buyback, so an effective buyback program requires material amendments to our bylaw," says Wu. "After months of discussion with shareholders who collectively hold a majority of voting rights in our company, we have concluded that we cannot secure majority vote to make these amendments. For the reasons above, the company has decided to cancel its share repurchase program."

Meanwhile, Wu asserts that he believes a management buyback will not be subject to the same regulations, and will not be prohibited by the company's bylaw.

The amount, price and time of such management buyback will be at the sole discretion of the purchasing general partner member. All purchases will be disclosed on Form 4 in a timely manner.

About UC Asset LP

UC Asset LP is a limited partnership formed for the purpose of investing in real estate with innovative strategies. For more information about UC Asset, please visit: www.ucasset.com

Disclaimer:

This News Release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause our actual results, performance or achievements, or industry results, to differ materially from any these statements. You are cautioned not to place undue reliance on any those forward-looking statements. Except as otherwise required by the federal securities laws, we undertake no obligation to publicly update or revise any forward-looking statements after the date of this news release. None of such forward-looking statements should be regarded as a representation by us or any other person that the objectives and plans set forth in this News Release will be achieved or be executed.

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SOURCE UC Asset LP