Dear fellow shareholders,
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 presently 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 was approximately $1,200,000.
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,
2) 65 acres in Galveston County, Texas,
3) 96 acres in Galveston County, Texas,
34 acres on Airport Blvd. in Houston, Texas, $2,000,000
5) 1.7 acres in Galveston County, Texas, $500,000
6) 2 lots on I-59 in Houston, Texas,
Related liabilities: 1st lien, owned on the 96 acres.
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, or management
All of these properties are listed for sale with brokers and have
appraised values that are significantly 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
Sale of Northeastern Plastics, Inc. ("NPI") - The Company
sold its shares in NPI. Purchaser liquidated
all the assets and all liabilities of NPI. One litigation
still outstanding relating to NPI. Management believes the Company has no
exposure to such frivolous claims.
Looking forward to 2018 and beyond
Of course, no one can predict what the economy will do in 2018;
however, we anticipate increased property sales.
American International Industries, Inc. is a diversified holding
company with a business model emphasis on real estate (primarily raw
land investments) in Houston, Texas, and primarily the Houston area.
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 2018.
Chairman and C.E.O