YELLOWKNIFE, Feb. 3 /CNW/ - Grandfield Pacific Inc. ("Grandfield") announces today the sale of the Discovery Inn Hotel.
Regency International Hotels Ltd, a wholly-owned subsidiary of
Grandfield, has signed an agreement and removed all conditions to sell
its entire interest in the Discovery Inn Hotel (the "Hotel") located in
Yellowknife, Northwest Territories to 4956 N.W.T Ltd. (the
"Purchaser") for $2,550,000.
Final closing of the sale is anticipated to be February 8, 2011. The
Purchaser has taken over the management and operations of the Hotel, as
of February 1, 2011, and will receive all revenues and be responsible
for all expenses. The Purchaser will pay 7% interest (per annum) to
Grandfield on the purchase price from February 1, 2011 until delivery
of the purchase proceeds.
Grandfield will use part of the proceeds from sale to repay outstanding
debt of approximately $1,575,000 and the balance of proceeds will be
invested in short-term liquid securities. Prior to the sale, the
Discovery Inn Hotel represented over 80% of the assets and over 90% of
the revenue and expenses of Grandfield.
Management is strategizing on the future plans of Grandfield with
regards to future operations and financial matters and will release
further information as it becomes available.
Additional information of Grandfield is filed on System for Electronic
Document Analysis and Retrieval ("SEDAR") and can be accessed
electronically at www.sedar.com.
ON BEHALF OF THE BOARD OF DIRECTORS
President and Chief Executive Officer
SOURCE Grandfield Pacific Inc.
For further information:
Sam Mark, President and Chief Executive Officer