Viva Board Authorizes Acquisition Agreements to Be Executed
Posted on: Thursday, 7 September 2006, 09:20 CDT
Viva International, Inc. (Viva) (OTCBB: VIVI) announced this morning that its Board has authorized the execution of the asset purchase agreements with San Antonio, Texas-based River Hawk Aviation (River Hawk).
The agreements provide for Viva to acquire assets consisting of aviation parts inventory and a SAAB 340 for approximately $2.5 million subject to normal due diligence reviews and adjustments. The remaining assets of River Hawk including customer lists, business processes, name, goodwill and other intangibles will be acquired for up to 3.5 million in restricted common shares of Viva.
River Hawk has operated as an aviation brokerage entity since June 24, 2003 and has primarily generated its sales through the sales and distribution of aviation parts including turbine engines. For the year ended December 31, 2005, River Hawk and a related entity ("the business") generated gross revenues of $707,663 and a gross margin of $540,511. For 2006 present gross revenues are approximately $1.5 million and are expected to reach $1.8 million with estimated gross margins of approximately $1.2 million.
Viva announced that director Calvin Humphrey who has owned and operated River Hawk as a private entity would be presenting the River Hawk opportunity and seeking financial commitments at a private investment banking conference on September 13th in New York City.
A secondary presentation is scheduled with representatives of the Cambridge Group, LLC on September 19th and 20th.
Robert Scott, CFO and a Director of Viva, commented, "Our Board unanimously supports the acquisition of the assets and right to use the name River Hawk. Our preliminary forecasted calculations for 2007 indicate that River Hawk (as a subsidiary) can generate $2.5 to $2.8 million with very attractive gross margins and operating profits. River Hawk can also be expanded above this threshold with the infusion of modest amounts of capital. The attractiveness of River Hawk also helps Viva in our continuing build out of our Caribbean operations by the complementary nature of its core business to our airline subsidiaries. But perhaps the most valuable part of this transaction is that it will bring the aviation managerial expertise of Calvin Humphrey to Viva. I am optimistic that the River Hawk acquisition and addition of Humphrey will enable Viva to obtain the financial support that it needs to build our aviation holding company."
About Viva International
Viva International has a number of airline and aviation-related interests including two developmental-stage carriers being readied to operate in regional markets from hubs in Puerto Rico and Santo Domingo, Dominican Republic.
The Company plans to create a network of regionally based airlines across the Caribbean, eventually to be linked to key points in the United States, Latin America, South America, and Europe.
At present, the Company maintains executive offices in Michigan.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended ("the Exchange Act"), and as such, may involve risks and uncertainties. Forward-looking statements which are based upon certain assumptions and describe future plans, strategies and expectations, are generally identifiable by the use of words as "believe,""expect,""intend,""anticipate,""project," or other similar expressions. These forward-looking statements relate to, among other things, future performance, and perceived opportunities in the market and statements regarding the Company's mission and vision. The Company's actual results, performance and achievements may differ materially from the results, performance, and achievements expressed or implied in such forward-looking statements. Further information on potential factors that could affect Viva International, Inc. is found in the Company's Form 10-K and other documents filed with the U. S. Securities and Exchange Commission.
Contact: Viva International, Inc. (231) 932-7490 Christina Hanneman Investor Relations 303-220-8476 866-755-8484
SOURCE: Viva International, Inc.
Source: MARKET WIRE
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