1 Oct 2007 15:14
Cubus Lux plc ("Cubus Lux" or the "Company") Extension of options to acquire certain development land known as the Olive Island Resort
On 13 March 2007, Cubus Lux 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. On 13 July 2007, the Company announced that it had 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").
The Company now announces that on 28 September 2007, it entered into further agreements to extend and amend these options so that they will be exercisable until 25 December 2007. In consideration for the extension of the Villas Development Option, Cubus Lux has agreed to pay ¢â€š¬200,000 to the grantors of the option. No financial consideration is payable in respect of the extension of the Hotel Development Option.
To reflect the progress that has been made in progressing the two development projects by their current owners, the consideration payable pursuant to the exercise of these options is amended as follows:
1) In respect of the Villas Development, the consideration is increased by ¢â€š¬ 3,000,000 (of which ¢â€š¬2,000,000 will be payable in cash, and ¢â€š¬1,000,000 will be payable in shares in Cubus Lux), and now comprises the following:
- ¢â€š¬12,000,000 in cash,
- 33,000,000 Cubus Lux shares, credited as fully paid, and
- Cubus Lux shares with a market value of ¢â€š¬1,000,000.
2) In respect of the Hotel Development, the consideration is increased by ¢â€š¬ 1,000,000 payable in cash, and will now comprise:
- ¢â€š¬5,000,000 in cash or in ordinary shares of Cubus Lux, and
- ¢â€š¬1,000,000 in cash.
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.
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 see www.cubuslux.com or contact:
Steve McCannCubus Lux plc+385 (0)99 214 9636Liam Murray/Simon SacerdotiCity Financial Associates Limited+44 (0)20 7492 4777
CUBUS LUX PLC