Dear fellow shareholders,
We are updating you certain information and developments the
Company transacted in the past 2 years. Our asset portfolio, now primarily consists of two publicly traded partially-owned
subsidiaries and a real estate portfolio as follows:
Gas Corp. (OTCQB:BRHM)
a 53.2% owned publicly traded subsidiary,
owner of overriding royalty interests, interests in a Texas gas
fields and previously was engaged in negotiations with
financial institutions for the purpose of financing potential
acquisitions of existing oil and gas properties and reserves.
In May 2017 all the shares of BRHM owned by the Company were
exchanged for 327,000 restricted common shares of Africa Growth
Corporation (approximately 4% ownership) symbol AFGC.
The market value of the shares at that time was approximately $1,200,000. AFGC has delisted due to failure to comply with SEC regulations, AFGC is currently a privately held company.
Real Estate Portfolio -
American International Texas Properties, Inc.,
real estate subsidiary owns a portfolio of strategically located
parcels of land primarily in Houston, Texas and vicinity. Portfolio includes:
1) 6 units - The Dawn Condominiums in
Galveston County, Texas, SOLD
2) 65 acres in Galveston County, Texas, SOLD
3) 96 acres in Galveston County, Texas, (appraisal) $4,500,000
34 acres on Airport Blvd. in Houston, Texas, (aprsl) $3,000,000
1.7 acres in Galveston County, Texas, $200,000
6) 2 lots on I-59 in Houston, Texas,
1-acre sites located on FM 518 in Kemah, Texas
This property is carried on the Company's books for an amount
substantially less than the market value, because it was acquired
through a related party transaction. Under G.A.A.P. accounting,
this property must be booked at original cost to the related party
Each valuation provided above is based on at least one of the
following: a professional appraisal, a pending offer, and management
All of these properties are listed for sale with CBRE Real Estate
Brokerage and have
appraised values that are higher than their book
values. Management believes that these three properties should be
sold in the next 12 to 36 months, which will substantially increase
the Company’s cash and working capital positions.
Sale of Delta Seaboard Well Service, Inc. (“DSWSI”) - On April 3,
2012, the assets and associated liabilities of DSWSI were sold,
resulting in a gain to American of approximately $1.2 million.
DSWSI became a subsidiary of American approximately 8 years ago and
in line with our corporate business strategy, we took advantage of
an opportunity to increase shareholder value by selling this
subsidiary. Delta Seaboard intended after selling it operating subsidiary
Delta Seaboard Well Service, Inc. kept the public shell and changed
name to American International Holdings Corp. (AMIH). In 2019
the control of the shell was sold in an exchange of stock.
Sale of Northeastern Plastics, Inc. ("NPI") - The Company
sold its shares in NPI. Purchaser liquidated
all the assets and all liabilities of NPI have been settled.
matters relating to NPI have been settled.
In 2019 the Company acquired all the shares outstanding of Kemah 518,
Inc. in exchange of the Company four (4) years restricted shares. Kemah 518, Inc. owner
of 4.215 acres in Kemah, Texas were developed into four (4) sites for sale to
developers or outright franchises. One (1) site has a lease
lease to AutoZone for a 20-year $80.00 net net net lease. The
lease was subsequently sold on a 4.8% market cap for a cash
consideration of $1,780,000. The remaining three (3) 1-acre sites are
being sold and/or leased to other users or developers. The
Company expects that the sale of the three (3) 1-acre sites will generate
approximately $3,500,000. In the event that the Company will
land lease these sites, the total value will be substantially more
than if the properties were sold to a developer. Kemah 518, Inc. has a line of credit
of $2,500,000 secured by its properties and at this time full
Looking forward to 2020 and beyond
Of course, no one can predict what the economy will do in 2020
especially in lieu of COVID-19 (coronavirus);
however, we anticipate increased property sales, except for
American International Industries, Inc. is a diversified holding
company with a business model emphasis on real estate (primarily raw
land investments) in Houston, Texas.
key talent of our management team has been to acquire real estate
and sell it to developers for a substantial profit. The Company may acquire real
estate for resale, based upon market conditions, location and
development potential. We will use profits from these ventures and
continue to strengthen our relationships with financial institutions
and outside investors to improve our asset portfolio.
I wish to thank our management team and our employees for
their hard work and dedication. On behalf of our Board and
management, I wish to express our gratitude to our shareholders for
your continued support. We remain committed to delivering value to
our shareholders and look forward to a successful 2020.
Chairman and C.E.O