AVVAA World Health Care Products, Inc. (OTCID: AVVH), operating through its wholly owned subsidiary GoldQuest Capital, Inc., has completed the buyback and cancellation of 620,000 Preferred B shares, a move equivalent to retiring 62 million shares of common stock, the Houston-based real estate lender announced. The company reported the capital structure initiative alongside the launch of a new Advisory Services product line, recent capital raises, and a growing client pipeline, according to NEWMEDIAWIRE.
The preferred share retirement matters to common shareholders because it reduces potential dilution and simplifies the company's capital structure, which management said is intended to enhance long-term value. The move comes as the company balances its core business of syndicating first-lien, asset-backed real estate mortgages in the residential, commercial and industrial sectors with a new, relatively low-capital-intensity revenue source.
That new Advisory Services line generates fees by assisting other companies with raising capital. The company said one client maintains a $50 million loan portfolio and is seeking to leverage those assets to expand its lending capacity, with GoldQuest assisting in structuring and accessing the required capital. A second client holds contracts that include substantial tax incentives tied to the build-out of EV charging stations, and GoldQuest is working to secure financing to construct and deploy those stations.
To support both lending operations and advisory work, the company said it raised $500,000 in debt from private individuals and secured a $1 million bank line of credit. Several additional bank lines remain pending and are expected to become available once the company meets associated cash or equity triggers. Management said it continues to prioritize capital sources that involve minimal or no dilution of common stock.
The implications extend beyond the balance sheet. The combination of a cleaner share structure and new funding capacity positions the company to deploy capital into its own loan portfolio and fee-generating advisory mandates at a time when demand for private credit and specialized real estate financing remains active. The dual model of collateralized lending plus fee-based advisory work could diversify revenue and improve return on capital if the pipeline converts.
Mr. Miguel Sanchez, President and CEO, said the company was pleased with progress on strengthening its capital structure through the Preferred B buyback and cancellation, as well as the launch of the Advisory Services line. He said these steps, combined with recent debt and credit facility commitments, position the company to support a growing client base while continuing to expand its real estate lending activities. More information is available at www.goldquestcapital.com.
The company cautioned that forward-looking statements regarding capital deployment, advisory engagements, credit facilities and business growth are not guarantees of future performance and involve risks and uncertainties, including the availability of capital, client execution, market conditions, regulatory developments and the performance of its lending and advisory activities.
