Alset Inc. filed a Form 8-K on September 21, 2026, disclosing that on September 15, 2026, it entered into a securities purchase agreement with DSS, Inc., acquiring a convertible promissory note and warrants for a purchase price of $500,000.

Key Highlights

  • Purchase price: Alset Inc. paid $500,000 to DSS, Inc. for a convertible promissory note and warrants.
  • Conversion terms: The note may be converted into DSS common stock at $0.50 per share, with a simple interest rate of 3% per annum and a five-year term.
  • Warrants: Alset received warrants to purchase up to 8,000,000 shares of DSS common stock at an exercise price of $0.55 per share, expiring on their fifth anniversary.
  • Existing relationship: Alset holds an approximately 39.4% equity interest in DSS directly and through its subsidiaries, and the two companies are described as related parties under the common control of Chan Heng Fai.
  • Recusal: Chan Heng Fai and Chan Tung Moe recused themselves from all deliberation and voting regarding the transaction documents, which were approved by the company's Board of Directors and Audit Committee.
  • Stockholder approval required: The transaction documents require the approval of DSS stockholders prior to conversion of the note or exercise of the warrants.

Alset Inc. Invests $500,000 in DSS Inc. Through Note and Warrant Purchase

According to the filing, Alset Inc. (NASDAQ:AEI) entered into a securities purchase agreement with DSS, Inc., a New York company, on September 15, 2026. Under the agreement, Alset purchased from DSS a convertible promissory note and warrants to purchase 8,000,000 shares of DSS common stock for a combined purchase price of $500,000. The note is payable upon demand and carries a simple interest rate of 3% per annum.

The filing states that Alset may convert any outstanding principal and interest on the note into shares of DSS common stock at $0.50 per share, provided it gives notice prior to maturity, which is five years from the date of the note. The warrants carry an exercise price of $0.55 per share and expire on their fifth anniversary. The filing notes that conversion of the note and exercise of the warrants are both contingent on prior approval by DSS stockholders.

The filing discloses several overlapping relationships between Alset and DSS. Chan Heng Fai, Chairman and Chief Executive Officer of Alset, is also Chairman of DSS and personally holds a significant ownership interest in DSS common stock. Chan Tung Moe, a director and Co-Chief Executive Officer of Alset, is also a director of DSS, as is Lim Sheng Hon Danny, a director and officer of Alset. Three of Alset's independent directors, Joanne Wong Hiu Pan, Wong Shui Yeung, and William Wu, are also directors of DSS. The filing states that Chan Heng Fai and Chan Tung Moe recused themselves from all deliberation and voting on the transaction, and that the transaction documents were approved by the company's Board of Directors and Audit Committee.

What Was Disclosed

Alset Inc. disclosed the entry into a securities purchase agreement with related party DSS, Inc., under which Alset paid $500,000 for a demand convertible note bearing 3% annual interest and warrants for 8,000,000 shares of DSS common stock at $0.55 per share.