ALSET Capital Inc. (KSUM.V) is an investment issuer that is focused on investment in diversified industries such as technology, healthcare, industrial, special situations, operating businesses through both debt and equity using cash resources or shares in its capital. ALSET Capital is uniquely positioned in the burgeoning AI industry through its 49.0% stake in Cedarcross International Technologies Inc., a company harnessing the power of NVIDIA’s cutting-edge H100 GPUs. This investment places ALSET at the forefront of the AI cloud computing hardware sector, offering significant growth potential in a market driven by insatiable demand for advanced computational capabilities.

Today, the Company provided an update on corporate and operational activities in what has been a busy and growing year.

Recently, the Company announced the formation of its Artificial Intelligence Advisory Board. Appointments included former Google and Panasonic AI Executive Willy Sun and Web 3.0 Pioneer Michael Gord. The AI Advisory Board will assist the Company’s board of directors and executive officers to provide strategic guidance and insights on the Company’s AI initiatives.

ALSET completed financings in March and May 2024 for total gross proceeds of approximately $7.6 million.

In those same months, the stock began trading on the Frankfurt Stock Exchange and the OTC Market in the US. Now the stock is traded on the TSXV in Canada, the OTC in the US, and the FSE in Germany.

Things have been advancing in the operational side of things.

On April 2, 2024, the Company announced a $3.7 million secured loan to Cedarcross to purchase 10 Nvidia H100 HGX 8GPU servers capable of 700,000 compute hours per annum. The Loan is secured against all present and after acquired property of Cedarcross, including specific asset security against five Nvidia 8GPU HGX H100 Servers. The Loan is repayable in full on July 1, 2025, and will bear interest at a rate of 15% per annum.

On April 25, 2024, Cedarcross entered into a two-year AI computing leasing agreement expected to generate approximately $5.5 million in total revenue, with aggregate gross margin of approximately $4.4 million over the contract’s duration. Cedarcross will provide approximately 700,000 compute hours annually, totaling 1.4 million AI compute hours over the contract’s duration. This agreement underscores Cedarcross’ growing influence and capabilities in the realm of AI infrastructure.

On April 22, 2024, Cedarcross entered into a Distribution Agreement incremental to its previously announced Supply Agreement with Earthmade. The Distribution Agreement enables Cedarcross to distribute Nvidia GPU High-Performance Computing servers and receive assistance from Earthmade in obtaining hardware allocation from Super Micro Computer, Inc.

On May 16, 2024, Cedarcross signed an agreement with an arm’s length counterparty to distribute 64 Nvidia H100 Servers, generating $26 million in revenue for Cedarcross. The estimated gross margin from this agreement will be approximately $2.3 million.

Cedarcross aims to secure additional HPC Server Distribution contracts, service its computing leasing client, and leverage expected and future cash flows to acquire additional servers to grow its computing leasing business.

On May 21, 2024, Vertex announced a strategic partnership with Nom Nom AI Inc., formalized through a Master Services Agreement. This collaboration focuses on AI data engineering and automation to enhance business intelligence and innovation. Vertex aims to offer advanced data management tools, while Nom Nom specializes in data engineering, security, and automation, providing solutions to streamline operations, reduce expenses, and maintain competitive edges. This partnership will benefit future clients by improving data observability, providing real-time analytics, and optimizing machine performance.

Vertex plans to leverage its partnership with Nom Nom to drive innovation in managed data services and AI, enhancing data quality, security, and infrastructure performance. This collaboration is expected to bring forth numerous benefits for future clients, including enhanced data observability, insights, optimization of machine performance, and real-time analytics, particularly for those utilizing Alset’s portfolio companies’ AI computing infrastructure.

The stock is up 2% at time of writing on today’s news.

The stock has been in a new uptrend beginning in February 2024. We have our first higher low confirmed at $0.225. Now, the stock is pulling back after printing higher highs. We are now contained within a flag pattern. Await for a daily candle close above the upper portion of this trendline to confirm a breakout. A close below $0.225 would nullify the upwards momentum. The price action is narrowing indicating a breakout soon.

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