Alset AI Ventures Acquires Chaco Minerals Debenture

Alset AI Ventures Inc. announced a strategic acquisition of a $1.3 million unsecured convertible debenture from Chaco Minerals. This decision aims to strengthen Alset's investment portfolio by converting intercompany receivables into investment assets, thus enhancing its balance sheet. Originally issued by Chaco in December 2024, the debenture accrues 3% interest annually and matures in December 2026. It allows Alset AI to convert principal and interest into Chaco units at $0.10 per unit.

This transaction also improves Lyken.AI's financial standing by significantly reducing its debt to Alset from $1.6 million to $342,000. Chaco, focusing on lithium exploration in Paraguay, aligns with Alset's strategy to invest in critical minerals for AI infrastructure development. As AI expands globally, the demand for energy systems and materials like lithium is expected to grow, highlighting the significance of this acquisition in the global energy transition.