Chairman’s Letter

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: 

·        Brenham Oil & 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., our 100% owned 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

4)   34 acres on Airport Blvd. in Houston, Texas, (aprsl)   $3,000,000

5)   1.7 acres in Galveston County, Texas,                            $200,000

6)   2 lots on I-59 in Houston, Texas,                                        SOLD

7)   3 1-acre sites located on FM 518 in Kemah, Texas      $3,500,000



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 contributor.


Each valuation provided above is based on at least one of the following: a professional appraisal, a pending offer, and management opinion. 


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.

Recent developments

·     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.  All litigation 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 funded.

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 unforeseen circumstances.

American International Industries, Inc. is a diversified holding company with a business model emphasis on real estate (primarily raw land investments) in Houston, Texas.

A 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.

Daniel Dror


Chairman and C.E.O