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News Release Highlights:
- Alset investee Cedarcross signs Nvidia H100 GPU server contract for an initial three (3) servers (for a purchase price of $1.37 million), with the customer having an option to acquire an additional 200 servers (for a purchase price of $91.7 million) valid until September 30, 2024.
- Cedarcross achieves approx. $29.7 million cumulative revenue year to date with its high-performance computing ("HPC") server distribution business vertical alone.
- Nvidia's H100 GPU Servers are used in "Transformational AI Training", offering up to "7x higher performance for High Performance Computing applications."1
VANCOUVER, BC / ACCESSWIRE / June 13, 2024 / Alset Capital Inc. (TSXV:KSUM)(OTC:ALSCF)(FSE:1R60, WKN:A3ESVQ) ("Alset" or the "Company") is pleased to announce that its investee company, Cedarcross International Technologies Inc. ("Cedarcross"), has signed an agreement with an arm's length counterparty, Big Energy Investments Inc., DBA Ceti AI ("Ceti AI") to distribute three (3) Nvidia H100 HGX 8GPU servers, which is anticipated to generate $1.37 million in revenue for Cedarcross, with an option for the counterparty to acquire up to 200 H100 HGX 8GPU servers, which if exercised would generate $91.7 million in revenue (the "Transaction").
Following Cedarcross' two previously announced distribution agreements announced on April 22, 2024 and May 16, 2024, this agreement marks an important advancement in Cedarcross' distribution business within the high-performance computing (HPC) server market. Cedarcross has now secured cumulative revenue year to date of approximately $29.7 million through its HPC server distribution business vertical alone. These distribution agreements underscore the significant demand and strategic market positioning of Cedarcross in the HPC landscape.
"This transaction represents another significant milestone for Cedarcross" said Morgan Good, CEO of Alset. "It highlights their strong partnerships, which provide access to high-performance computing Nvidia GPU servers for both in-house use and third parties. Additionally, this distribution vertical enhances their existing compute leasing business unit, fostering diversity in their offerings and deeper market penetration."
The estimated gross margin from the initial $1.37 million purchase order is approximately $176k, and the estimated gross margin assuming all 200 H100 HGX 8GPU servers are purchased is approximately $11,782,000.
As of this announcement, the Company has been informed that Cedarcross has received a 10% downpayment for the initial $1.37 million purchase. The payment schedule is as follows:
- $413,055 due within fourteen (14) days of June 4th, 2024
- $275,370 due when the servers are ready to ship
- $275,370 due upon receipt of the servers by Ceti AI
- $275,370 due seven (7) days after Ceti AI receives and accepts the servers
The sale of up to 200 servers to Ceti AI is subject to Ceti AI obtaining approval from the Original Equipment Manufacturer (OEM) compliance.
All amounts in Canadian Dollars unless otherwise specified. These figures are converted from US dollars at an exchange rate of 1.37 (USD to CAD).
(1) Nvidia.com
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.
For further information about Alset Capital Inc., please contact:
Morgan Good, CEO and Director
T: 604.715.4751
E: morgan@alsetai.com
Cautionary Note regarding Forward Looking Statements
Certain statements in this press release may contain forward-looking information (within the meaning of Canadian securities legislation), including, without limitation, the consummation of the transactions contemplated by the distribution and option agreement, the closing of the Transaction as contemplated or at all, approval from OEM Compliance in the event the option to acquire the additional 200 Nvidia H100 HGX 8GPU servers is exercised, the Nvidia H100 HGX 8GPU servers' revenue generation, and the growth of the global cloud AI market. 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.
Cautionary Note Regarding Future Oriented Financial Information
This news release also contains future-oriented financial information and financial outlook (collectively, "FOFI") about the Cedarcross' forecasted revenues from the sale of the three Nvidia H100 HGX 8GPU servers and the option it has granted for the sale of an additional 200 Nvidia H100 HGX 8GPU servers and the receipt of OEM's approval if the option to acquire the additional 200 Nvidia H100 HGX 8GPU servers is exercised, which is subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraphs. FOFI contained in this news release was made by management as of the date of this news release and was provided for the purpose of providing readers with an understanding of the importance of such sale and option to Cedarcross' business, and are not an estimate of profitability or any other measure of financial performance. Readers are cautioned that the FOFI contained in this news release should not be used for purposes other than for which it is disclosed herein. The Company disclaims any intention or obligation to update or revise any FOFI contained in this News Release, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. FOFI contained in this news release should not be used for purposes other than for which it is disclosed herein.
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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