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Wednesday, May 29, 2024

Breaking AI Stock News: Alset Capital Inc. (TSXV: $KSUM.V) (OTC: $ALSCF) Provides Corporate and Operational Update; @AlsetAI

Breaking AI Stock News: Alset Capital Inc. (TSXV: $KSUM.V) (OTC: $ALSCF) Provides Corporate and Operational Update; @AlsetAI

 

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VANCOUVER, BC, May 29, 2024 (Investorideas.com Newswire) Alset Capital Inc. (TSXV:KSUM) (OTC: ALSCF) (FSE:1R60, WKN:A3ESVQ) ("Alset" or the "Company") is pleased to provide a corporate and operational update.

 

This news is paid advertisement/ news disseminated on behalf of/issued on behalf of Alset Capital Inc.

 

Read this news, featuring KSUM in full at https://www.investorideas.com/news/2024/technology/05291KSUM-Corporate-and-Operational-Update.asp

 

It has been a busy and exciting year so far for Alset as the Company continues to grow its Artificial Intelligence investment portfolio, focusing on generating long-term value for shareholders. We are pleased to report that this year to date, our portfolio companies have made some significant advancements. Alset seeks to build a vertically integrated portfolio in the AI sector, and aims to be a value-add partner in the businesses it invests in.

 

Corporate Update

Artificial Intelligence Advisory Board

On May 23, 2024, the Company announced the formation of its Artificial Intelligence Advisory Board ("AI Advisory Board"), alongside the appointments of 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. Comprising diverse experts, the board will advise on AI strategy, identify emerging trends, ensure compliance with ethical standards, manage risks, evaluate AI performance, and foster innovation.

 

Financing

In March and May of 2024, Alset completed non-brokered private placements for total gross proceeds of approximately $7.6 million.

 

Stock Exchange Listings

On March 27, 2024, the Company announced the listing of its common shares (the "Common Shares") on the Frankfurt Stock Exchange (the "FSE") under the trading symbol "1R60", WKN: A3ESVQ, and ISIN: CA02115L2003.

 

On May 2, 2024, the Company announced that its Common Shares have commenced trading on the OTC Market under the symbol "ALSCF" effective April 26, 2024. Additionally, the Company has received Depository Trust Company (DTC) eligibility in the United States, facilitating easier and broader trading access for US investors.

 

The Common Shares are currently listed on the Toronto Stock Exchange Venture (the "TSXV") in Canada, the OTC in the U.S., and the FSE in Germany.

 

Operational Update

Cedarcross International Technologies Inc. ("Cedarcross")

The Company's investee company, Cedarcross, has made significant strides in its pursuit to become a major AI compute provider.

 

On April 2, 2024, the Company announced a $3.7 million secured loan (the "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 (5) Nvidia 8GPU HGX H100 Servers ("Nvidia H100 Servers"). The Loan is repayable in full on July 1, 2025, and will bear interest at a rate of 15% per annum.

 

AI Computing Leasing

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.

 

As highlighted in a recent interview with Sam Altman, CEO of OpenAI, Altman emphasized the critical role of computing power, suggesting that "compute" will be the "currency of the future."1 Cedarcross, aligned with this vision, is strategically positioned to address this escalating demand by providing access to the world's fastest AI servers, leveraging Nvidia's H100 HGX GPUs.

 

Cedarcross has established an AI computing hub, powered by Nvidia H100 Servers. Currently, five (5) Nvidia H100 Servers are fully installed and interconnected using Infiniti brand network components. Each server is linked to eight 400GB optical modules, ensuring optimal efficiency. Cedarcross sold five (5) of its previously purchased Nvidia H100 Servers to Big Energy Investments Inc., DBA Ceti AI ("Ceti AI"), (as described in HPC Computing Server Distribution section). The proceeds from this sale funded a purchase order made through CoinDigger DBA Earthmade Computer Corp. ("Earthmade") for five (5) additional Nvidia H100 Servers from Super Micro Computer, Inc. (NASDAQ: SMCI), solidifying Cedarcross' relationships with both Earthmade and Super Micro Computer, Inc.

 

Cedarcross has begun accruing revenue from its initial five (5) Nvidia H100 Servers and anticipates incremental revenue from its additional five (5) Nvidia H100 Servers to start accruing soon after the delivery and installation of the additional servers sourced from Earthmade and Super Micro Computer, Inc. (NASDAQ: SMCI).

 

HPC Computing Server Distribution

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 (HPC) servers and receive assistance from Earthmade in obtaining hardware allocation from Super Micro Computer, Inc. (NASDAQ:SMCI).

 

Additionally, Cedarcross entered into an HPC server purchase agreement with Ceti AI for the sale of five (5) Nvidia H100 HGX 8GPU servers, generating approximately C$2.3 million in gross revenue. The aggregate return for Cedarcross is expected to be up to $240K, subject to ordinary course chargebacks and associated expenses.

 

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 has now secured cumulative revenue year-to-date of approximately $28 million through its HPC server distribution business vertical alone. These agreements underscore the robust demand and strategic market positioning of Cedarcross in the HPC landscape.

 

Vertex AI Ventures Inc. ("Vertex")

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.

 

Outlook

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. Cedarcross is also exploring compute-for-equity structured transactions in the event of excess compute capacity with future HPC servers, potentially lending significant upside to Cedarcross.

 

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 Company is also actively seeking potential accretive investments, acquisitions, and/or business alliances in other AI-focused sectors, including data centres, power infrastructure, HPC server cooling systems, and energy usage reduction software.

 

1 TradingView

 

All amounts in Canadian Dollars unless otherwise specified.

 

On behalf of Alset Capital Inc.

 

"Morgan Good"

 

Morgan Good

Chief Executive Officer

 

About Alset Capital Inc.

Alset Capital Inc. 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. The Company is led by an experienced, entrepreneurial group of executives having a diverse industry and capital markets background.

 

Alset Capital Inc.'s investment portfolio comprises 49% ownership of Cedarcross International Technologies Inc. and 49% ownership of Vertex AI Ventures Inc.

 

About Cedarcross International Technologies Inc.

Cedarcross Technologies is an Artificial Intelligence cloud computing provider, with a vision of becoming one of Canada's largest AI compute providers. The Company is dedicated to democratizing access to cutting-edge AI computing, offering access to the world's fastest AI servers powered by Nvidia's H100 HGX 8GPU Servers. Focused on leasing compute resources to enterprise clients, Cedarcross Technologies anticipates significant revenue growth.

 

About Vertex AI Ventures Inc.

Vertex is at the forefront of intellectual property (IP) identification and acquisition, as well as providing AI data management services. The company's mission is to discover and acquire innovative AI intellectual property from early-stage ventures, fueling advancements in artificial intelligence. In the realm of data management, Vertex aims to excel in delivering premier services that harness the power of AI to streamline operations, minimize costs, and secure a competitive edge in the increasingly data-driven world.

 

The comprehensive suite of services offered by Vertex ensures superior data quality and security, offering advanced observability insights, machine performance optimization, and real-time analytics tailored to AI computing infrastructures. Specializing in data retention and disposition solutions, Vertex addresses critical issues of data security and compliance, setting the standard for safeguarding the integrity and privacy of digital information in today's complex digital landscape.

 

For further information about Alset Capital Inc., please contact:

Morgan Good, CEO and Director

T: 604.715.4751

E: morgan@alsetai.com

 

Forward-Looking Statement Cautions

Certain statements in this press release may contain forward-looking information (within the meaning of Canadian securities legislation), including, without limitation, the perceived benefits of the Master Services Agreement amongst Vertex and Nom Nom, the demand and growth of the AI industry, the consummation of the transactions contemplated by the Master Services Agreement, Cedarcross's repayment of the Loan and accrued interest thereon, possible investments by the Company in additional investee companies, the consummation of the transactions contemplated by the Distribution Agreement, the consummation of the transactions contemplated by the agreements with Earthmade and Super Micro Computer, Inc. and the perceived revenues to be derived from the transactions disclosed herein.. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties, and other factors, which may cause the actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the statements. Forward-looking statements speak only as of the date those statements are made. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include regulatory actions, market prices, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable law, the Company assumes no obligation to update or to publicly announce the results of any change to any forward-looking statement contained or incorporated by reference herein to reflect actual results, future events or developments, changes in assumptions, or changes in other factors affecting the forward-looking statements. If the Company updates any forward-looking statement(s), no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements.

 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

SOURCE: Alset Capital Inc.

 

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