13 Jul 2007 07:30
Cubus Lux plc Extension of options to acquire certain development land known as the Olive Island Resort
On 13 March 2007, Cubus Lux plc (the "Company") announced that it had entered into two option agreements to acquire certain development land known as the "Olive Island Resort" on the coast of Dalmatia in Croatia. These options were originally for a four month term, expiring on 12 July 2007.
The Company entered into agreements on 12 July 2007 to extend these options for a further two months, expiring on 12 September 2007.
The Olive Island Resort development land is intended to be developed into a village resort comprising 126 villas and 305 apartments as well as accompanying facilities, such as restaurants, shops, offices and a marina (the "Villas Development"); and a four-star hotel containing 500 beds (the "Hotel Development").
Both option agreements are conditional upon a number of factors, including completion of due diligence by the Company, finalisation of the terms of acquisition and the raising of debt or equity financing by the Company for at least ¢â€š¬10 million. The exercise of the options is subject to appropriate consents having been granted by the government of Croatia.
Highlights, as announced on 13 March 2007:
* Option to acquire the Villas Development for ¢â€š¬10 million in cash and the issue of 33 million ordinary shares in the Company.
* Option to acquire the Hotel Development for ¢â€š¬5 million in ordinary shares of the Company.
* Independent valuation by UK based surveyors Kings Sturge of the Villas Development at ¢â€š¬39 million and the Hotel Development at ¢â€š¬5 million.
In the event that the Company proceeds with the acquisition of the Villas Development and the Hotel Development, the transaction is expected to constitute a reverse takeover for the purposes of the AIM Rules, and will therefore require the issue of an admission document and shareholder approval. In addition, the transaction would be considered to be a related party transaction for the purposes of the AIM Rules due to the connection between Gerhard Huber, Michael Janssen and Christian Kaiser (directors of the Company) and the counterparties to the option agreements.
For further information please contact:
Leon Nahon +44 (0)7920 834 156Cubus Lux plcRoss Andrews/Simon Sacerdoti +44 (0)20 7090 7800City Financial Associates LimitedGraham Herring/Josh Royston +44 (0)20 7936 9605Threadneedle Communications Limited
CUBUS LUX PLC