Chairman’s Letter

Dear fellow shareholders,

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 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., 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,                         $4,500,000

4)   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,                                       SOLD



Related liabilities: 1st lien, owned on the 96 acres.                $300,000


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, or management opinion. 


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.

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. 

·     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 matter is 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.

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 2018.

Daniel Dror


Chairman and C.E.O