Alset Inc. Securities Investigation
The White Law Group is investigating Aegis Capital Corp. and other brokerage firms for the unsuitable sale and recommendation of investments in Alset Inc. (formerly Alset Ehome International Inc.), under the symbol AEI.
Aegis Capital Corp. reportedly underwrote multiple offerings of Alset Inc., including a $3,800,000 offering on February 6, 2023, which has experienced a post-offering return of -52.3% as of February 28, 2024.
Additionally, a $31,983,890 offering on May 10, 2021, and a $31,902,297 offering on July 27, 2021, have had post-offering returns of -99.0% and -97.5% respectively as of February 28, 2024. From 2011 to February 28, 2024, Aegis Capital Corp. solely underwrote four offerings of Alset Inc., totaling $97,655,110.
A recent analysis by the financial economics consulting firm SLCG revealed that many offerings underwritten by Aegis Capital Corp. were issued by nano-cap companies on the brink of delisting and bankruptcy. Over 95% of Aegis Capital’s underwritings have underperformed the average microcap stock.
Background on Alset Inc.
Alset Inc. operates as a real estate development company. The company reportedly specializes in land development, home building, sales and rental, and property management.
Alset EHome International Inc. (NASDAQ:AEI) company changed its name to Alset Inc., effective Tuesday, October 4, 2022.
Latest News on Alset Inc.: Possible Delisting
Alset was reportedly notified by the Nasdaq Stock Market that it is at risk of delisting due to its stock price consistently trading below the minimum $1 threshold. The notice, received on Monday, April 15, 2024, indicated that Alset’s bid price did not meet the Nasdaq Capital Market’s listing requirement for 30 consecutive business days prior to the notice.
The company now has 180 days, until October 12, 2024, to address this issue and raise its stock price above the $1 minimum for at least ten consecutive business days. If Alset EHome achieves this, Nasdaq will confirm in writing that the company has regained compliance, and the matter will be resolved.
Failure to meet the requirement by the compliance date will result in a notification of potential delisting. The company could then appeal the decision before a Nasdaq Hearings Panel.
Risks Associated with Small Stock Offerings:
- Lack of Information: Many small companies may not provide comprehensive financial disclosures or have limited operating histories.
- Market Volatility: Small stocks can be more volatile than larger, established companies, leading to significant price fluctuations.
- Liquidity Concerns: These stocks may have low trading volumes, making it difficult to buy or sell shares at desired prices.
Broker Responsibilities and Investor Protections
Broker dealers are obligated to conduct thorough due diligence on any investment they recommend and ensure that all recommendations are suitable for their clients. Firms that fail in this duty may be held liable for investor losses through FINRA arbitration claims.
If a broker or brokerage firm makes an unsuitable investment recommendation or fails to disclose the associated risks adequately, they may be found liable for investment losses in a FINRA arbitration claim. Fortunately, FINRA provides an arbitration forum for investors to resolve such disputes.
Recovery of Investment Losses
If you have concerns about your investment in the Alset Inc., you may have the option to file a complaint against your brokerage firm. The securities attorneys at The White Law Group offer free consultations and can be reached at 1-888-637-5510.
About The White Law Group
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. The firm represents investors across the country in claims against their brokerage firms.
Last modified: August 2, 2024
