SOURCE: Caribbean Casino and Gaming Corp.
MIAMI, FL--(Marketwire - Sep 6, 2012) - Caribbean Casino Gaming Corp. (PINKSHEETS: CGAQ), "the Company" wishes to keep its loyal shareholders updated on the progress of what will prove to be the greatest acquisition by the Company to date.
Negotiations with the Seller have been moving ahead steadily. Much has transpired in the last three weeks. Both parties are eager to close this deal as soon as possible. Here are the major milestones:
1. Due to the many deed holders in the resort, both parties have been working hard to get every deed identified and its sale approved. The legalities are immense. Toward that end, the Company has two D.R. attorneys working together to ensure that the closing goes as planned; without a hitch.
2. The Seller has agreed to carry a loan at very favorable rates and without a steep "origination" fee. The seller will require less down than the other lenders, and a longer term, too. The Company will have a mortgage of less than US $2,500,000. The last property appraisal from 2008 valued the property at $17,000,000.
3. An agreement for the sale of 50% of the Sosua Bay Grand Casino has been reached. Attorneys are currently reviewing the sales contract. The buyer of the casino will have the option to purchase the remaining 50%. Some of the proceeds from this sale will be used for the down payment on the resort. This eliminates the need for another loan.
4. The Company's structural engineer, Dionicio Guzman, reports that the property has been maintained well; and little expenditure will be needed to re-open it. A home video and photos have been posted here: http://www.caribbeangamingcorp.com/projects.html
5. The Company has decided to form its own onsite real estate division to handle sales (domestic & international) of the 100 available condos. The front desk will handle all other long and short term rentals.
"In my opinion, we have found a once-in-a-lifetime opportunity," commented CEO Steven Swank, adding "I have worked long and hard to create an asset base that will benefit our bottom line." The Company sees four major revenue streams for this resort:
1. Direct Condo sales to the American and European markets. This includes revenue from ongoing monthly condo fees for management and maintenance. This includes the 86 sold condos on the property. Current market value per condo is $69,000 to $109,000.
2. Short term vacation rentals from hotel operations to season long guests.
3. Revenue from the public amenities in the "Common Areas" of the property (beach club, bars, discos, restaurants, sport rentals) including the distinct possibility of opening some kind of casino and/or gaming parlor. The permit for this venue has been obtained and is part of the acquisition.
4. Special events such as boxing matches, theatrical, and musical productions on the main stage or on the beach at the Beach Club.
Profits made by the Company can and will be used to further other long term projects such as expanding Bionic Tonic distribution and investing in other properties in the D.R. The Company sees this acquisition as a huge step toward its original goal of being major business entity in the Caribbean.
"I'm grateful to our loyal shareholders who have suffered through many setbacks while owning this stock; many of those were mistakes made by me," said Swank. "I have learned a great deal from these mistakes and I'm confident that my team and I have found a solution to make the Company profitable and restore shareholder value to where it should be."
This report contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation.