Viva International, Inc. announced this morning that it has issued a letter of commitment to acquire a 49% interest in Royal Aruban Airlines. Final contracts for the acquisition are being prepared. This acquisition is being made by Hardyston Distributors, Inc., Viva`s wholly owned subsidiary. The acquisition price is $2.685 million which includes the assumption of $1.8 million in long-term debt and future financing of $885,000. Hardyston Distributors, Inc. will seek to change its name in connection with this acquisition. The Company also announced that Hardyston will be spun-off under a plan that will reward Viva shareholders of record as of October 15, 2003 with 1 share of Hardyston for every 3 shares owned in Viva International, Inc.
Stuart Carnie, President and CEO of Viva International, Inc., made the above announcement and commented, “The Royal Aruban project was brought to us as a result of familiarity with the Viva plan. In my opinion, Royal Aruban is an excellent fit and this acquisition avoids market place competition and actually encourages our development of the Caribbean market and beyond. The decision to acquire within one of our subsidiaries and subsequently spin-off gives our shareholders an opportunity to participate in the success of both Companies.”
Mr. Carnie added, “Aruba is a Category I country. Royal Aruban Airlines has a certificate to operate and aircraft is standing by for delivery and proving runs. There are a lot of economies in this relationship that will have the effect of reducing a number of Viva`s operating costs. I look forward to an enjoyable and prosperous relationship with Eric Hagens and the Royal Aruban staff.”
In conjunction with the provision of the “Safe Harbor” section of the Private Securities Litigation Reform Act of 1995, this release may contain forward-looking statements pertaining to the future anticipated projected plans, performance and developments, as well as other statements relating to future operations. All such forward-looking statements are necessarily only estimates of future results and there can be no further assurance that actual results will not materially differ from expectations. 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.
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