UC Asset LP (OTCQB: UCASU), an Atlanta-based entity focused on investing in real estate, announced it will be using its cashflow from net profit to buy back its stocks.
“In the past 24 months we have made major adjustments to our investment strategy,” said founder Larry Wu. “As the new strategy being implemented, we are going to have more income-producing properties in our portfolio. Hence, we are building up a stream of constant cash inflow.”
As an example, Wu noted that the company acquired 50% of a 15,000-square-foot cannabis property in May, from which the company has started to receive a monthly dividend of $12,000. Last week, the company announced entering into an MOU to build another cannabis property of 8,000 square feet, from which the company is expected to receive $20,000 monthly rent upon completion. The company also owns properties to be developed into short-term rentals which may also generate cash income.
“For the common interest of our shareholders, the management have decided that we should use part of our net cash inflow to buy back our stocks,” added Wu.
The company will announce the details of this initiative, including the buyback price, at a later date, although Wu stated he believed that net equity per share will be a good indicator for buyback price.
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