HWH International Inc. converted $300,000 of debt owed to Alset Inc. and $3.50 million of debt owed to Alset International Limited into common stock in September 2024. This action converted a total of $3.8 million in related-party debt.
This debt-to-equity conversion impacts the company's capital structure by reducing its outstanding liabilities. It also signifies the ongoing financial support from its majority stockholder and related entities.
For investors, this event demonstrates HWH's reliance on related-party financing to manage its balance sheet. While it alleviates debt, it also represents a form of equity issuance that can affect existing shareholder ownership percentages.
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