Trading: TSX Venture: LCN
VANCOUVER, March 11 /CNW/ - Leisure Canada Inc. (the "Company" or "LCI")
confirmed today that as per the December 21, 2007 press release, Profile
Investments LLC and persons associated therewith ("Profile") have completed
the due diligence process and have irrevocably agreed to invest C$15 million
in new capital into Leisure Canada. Additionally, Profile and persons
associated therewith have agreed to invest US$5 million in the Company's
operating subsidiary, Wilton Properties Limited ("Wilton"). Profile is a
Dubai-based investment group with global interests in real estate across
India, the Gulf Cooperation Countries ("GCC"), Cape Verde and North Africa.
The transaction is composed of Profile holding 49% of the issued and
outstanding shares of the Company at the time of closing. This will result in
the issuance of 60 million units at C$0.25 each for aggregate proceeds of
C$15,000,000. Each unit will be composed of one Class "A" common share plus
one-half warrant. One full warrant would entitle the holder to subscribe to
one additional common share of LCI for a period of 24 months after the closing
date at a price of C$0.35 per share. The Company will undertake to extend the
term of the warrants for a further 24 months at an exercise price of C$0.40 in
the third year and C$0.45 in the fourth. Additionally, Profile will acquire a
25% holding of the outstanding capital of Wilton by means of the subscription
of new shares in Wilton for a total sum of US$5 million. Finally, LCI will
arrange for the appointment of two directors nominated by Profile to the
Company's Board of Directors. Profile has also expressed its strong desire to
have Mr. Walter Berukoff remain as Chairman of the Company for a further
period of not less than five years. The completion of this transaction is
subject to all the necessary regulatory and shareholder approvals.
Commenting on the investment, Mr. Hanif Patel, Founder and Chairman of
the Profile Group, said "Cuba is an exceptional market; one of the most
exciting markets we have seen. We have visited all of Leisure Canada's sites
in Cuba and met with their partners, Grupo Hotelero Gran Caribe S.A. The sites
are world class and the partners have a real commitment and long term vision
for the development of Cuba as a major tourist and resort destination. We are
very happy with our decision to go ahead with this investment and to become
LCI's largest shareholder. Profile will offer many synergies to LCI;
assistance with design; access to capital to develop the projects; a strong
international marketing net work with over 30,000 existing clients and
contacts; and a significant international team of experts to support the Cuban
Walter Berukoff, the Executive Chairman of Leisure Canada said, "Profile
has completed its extensive due diligence procedure and is confident in making
this investment into Leisure Canada. Cuba is without a doubt one of the most
exciting new markets in the world. With the backing of a vertically integrated
global real estate developer such as Profile, we are ready to accelerate
development of our world class asset base in Cuba and become that nation's
premier hospitality and resort development company."
MAC Capital Limited, an Investment Bank, and Killik & Co (Middle East &
Asia) LLP, a financial services advisory group, both operating from the Dubai
International Financial Centre and authorized by the Dubai Financial Services
Authority, were joint advisors to LCI in this transaction.
Fyshe Horton Finney Ltd, authorized and regulated by the Financial
Services Authority (FSA) acted as sole advisors to Profile Investments &
Profile World in this transaction.
Leisure Canada is a leading developer of luxury resorts in Cuba, with
multiple properties currently under development, including five-star hotels,
over 4,200 hotel rooms and PGA championship golf courses.
ON BEHALF OF THE BOARD
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: JJ Jennex, Investor Relations Director,
Telephone: (604) 990-9599 or 1-888-600-8687, E-mail: email@example.com,
Website: www.leisurecanada.com; Mr. Hanif Patel, Chairman, PROFILE GROUP,
Level 24 Burjuman Business Tower, PO BOX 125237, Dubai, United Arab Emirates,
Tel: + 971 4 7095 100, Fax: + 971 4 351 8885, E-mail: firstname.lastname@example.org; Mr.
Robert W. McMillen, Chairman, MAC CAPITAL LIMITED, Suite 115, Building 4, Gold
& Diamond park, Interchange 4, Sheikh Zayed Rd., Dubai, U.A.E., Tel: 971 4 409
7171, Fax: 971 4 409 7271, E-mail: email@example.com