reAlpha Tech (NASDAQ:AIRE) Completes Acquisition and Investment in US Realty and Unreal Estate Inc.

On November 20, 2024, reAlpha Tech Corp. finalized an agreement to acquire USRealty Brokerage Solutions, LLC, along with an investment in Unreal Estate Inc., in a strategic move to enhance its operational capabilities and expand its reach into the U.S. real estate market. The detailed terms of this transaction were disclosed in a recent 8-K filing with the U.S. Securities and Exchange Commission.

As per the Membership Interest Purchase Agreement, reAlpha Tech acquired 100% of the membership interests of US Realty from Unreal Estate LLC, the seller, for an aggregate purchase price of $250,000 to be paid through in-kind services to be provided by reAlpha. Additionally, the agreement outlined indemnification clauses for breaches by both parties, with specific provisions and conditions to regulate liabilities and responsibilities post-acquisition.

Separately, on the same day, US Realty signed a Broker Services Agreement with one of the Seller’s real estate brokers, allowing the Broker to offer services related to real estate commission requirements and managerial functions across 33 U.S. states. US Realty agreed to pay the Broker $150 per hour for the services provided under the agreement.

Furthermore, Unreal Estate Inc. issued a convertible promissory note to reAlpha Tech in the original principal amount of $60,000. The terms of the Note outline possible conversion scenarios into preferred or common stock of the Parent Company based on predetermined events such as capital raises or public offerings. Interest under the Note will accrue at a rate of 9% per annum, with the principal amount becoming due in four years or upon the Company’s election for conversion.

Following these transactions, on November 21, 2024, reAlpha Tech Corp. released a press statement highlighting the recent developments. The acquisition is expected to provide reAlpha with access to up to 33 U.S. state brokerage licenses, empowering its expansion strategy and operational capacity. The strategic investment in Unreal Estate Inc. aims to reinforce reAlpha’s service offerings, particularly supporting growth in its Be My Neighbor and Hyperfast businesses.

These actions align with reAlpha’s vision of utilizing artificial intelligence technologies to streamline homebuying experiences, breaking traditional barriers and offering a cost-effective and transparent process for prospective homeowners. The strategic acquisitions and investments made by reAlpha signify a significant step towards establishing a stronger presence in the real estate technology sector.

For more information on these recent developments, interested parties are encouraged to refer to reAlpha Tech Corp.’s Form 8-K filing with the U.S. Securities and Exchange Commission, which includes detailed information on the agreements and agreements mentioned above.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read reAlpha Tech’s 8K filing here.

About reAlpha Tech

reAlpha Tech Corp., a real estate technology company, commercializes artificial intelligence (AI)-powered technologies. The company operates in two segments, Platform Services and Rental Business. The company offers and develops AI-based products and services to customers in the real-estate industry.