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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