Alset AI Secures $3 Million Unsecured Term Loan to Fuel Growth of Flagship Cloud Compute Business

Alset AI has secured a $3 million unsecured term loan facility to advance its flagship cloud compute business, Lyken.AI. The loan will be used for working capital and general corporate purposes, with the aim of achieving positive operating income by the end of 2026. The loan has a 6% interest rate and a maturity date of 3 years. The company will issue non-transferrable warrants to the lender for each advance made.

Alset AI (OTC: GPUSF) has announced the securing of a $3 million unsecured term loan facility to support its flagship cloud compute business, Lyken.AI, according to a Stocktitan report. The loan, which is expected to be used for working capital and general corporate purposes, will help the company achieve its goal of reaching positive operating income by the end of 2026. The loan agreement includes a 6% annual interest rate and a maturity date of 3 years.

The loan facility is structured in four advances: $500,000 on signing, $500,000 on October 31, 2025, $1,000,000 on December 31, 2025, and $1,000,000 at the discretion of management. Alset AI will issue non-transferable warrants to the lender for each advance made. Each warrant will be exercisable at $0.15 per share, with a maturity date of 3 years. The loan agreement is subject to approval by the TSX Venture Exchange (TSXV).

Adam Ingrao, CEO of Alset AI Ventures, commented on the strategic significance of the loan, stating, "This strategic term loan facility significantly strengthens our growth path. With shareholder-friendly terms including a very conservative interest rate, this financing allows us to strengthen our balance sheet without the need for a dilutive equity raise. It provides the needed capital to assist Lyken.AI to quickly scale revenue, leveraging Lyken.AI's cutting-edge PaaS platform to meet growing global demand and positioning us to advance towards positive exiting 2026, allowing us to provide value to our stakeholders."

The loan facility also includes a Board observer right for the lender, which will terminate upon the full repayment of the loan. The transaction is considered a related party transaction due to the lender's significant ownership in the company, and Alset AI is relying on exemptions from formal valuation and minority approval requirements, the Stocktitan report adds.