YOUNGSVILLE, LA / CRWEPRESSRELEASE / August 4, 2015 /Independence Energy Corp. (OTCMKTS: IDNG)announced today that its wholly-owned real estate subsidiary, RedHawk Land & Hospitality, LLC, (“RedHawk”) is in advanced discussions to acquire a 5.59% membership interest and a 7.79% net profits interest, in the iconic Naniloa Hilo Resort located in Hilo, Hawaii. Additionally, it is contemplated that as part of this transaction, RedHawk will acquire from Avior Capital LLC (“Avior”) the right to purchase, an additional 18.28% membership interest and a 9.14% net profits interest in the venture.
RedHawk said it would acquire the membership interests and the right to purchase from the Schreiber Living Trust (the “Trust”), Beechwood Properties, LLC (“Beechwood”) and Avior. The Trust and Beechwood collectively own 51.24% of the Independence Energy Corp.’s outstanding common stock. Mr. Dan Schreiber, Independence Energy Corp.’s Chief Executive Officer and Chairman, has voting control over the assets of the Trust and Avior, while Mr. G. Darcy Klug, Independence Energy Corp.’s Chief Financial Officer and Secretary, owns and controls Beechwood. Following this proposed transaction, all of Avior’s, the Trust’s and Beechwood’s interests in this project will be held by RedHawk.
In December 2013, the Trust and Beechwood participated with WHR LLC in the $7 million acquisition of the historic Naniloa Hilo Resort. Recently, all necessary governmental approvals have been secured and satisfactory financing arranged to commence a $20 million restoration of the 388 room hotel. Restoration is expected to be completed in early 2016.
When completed, the resort will be re-branded as The Hilo Doubletree by Hilton and Golf Resort at the Naniloa in Hilo, Hawaii, and will be managed by Aqua Hospitality, Inc. Independent third party appraisers commissioned by the bank providing the restoration financing have estimated that the hotel will be worth $71,500,000 after restoration is complete and $102,000,000 after a three-year stabilization period under the Hilton flag.
A definitive purchase agreement for the membership interest, the net profits interests and the assignment of the right to purchase is anticipated to be completed and executed by RedHawk, Avior, the Trust and Beechwood within ninety (90) days of this announcement. Closing of the transaction is expected to be completed in the second quarter of Independence Energy Corp.’s fiscal year ending June 30, 2016. The transaction is contingent upon, among other things, approval by the Independence Energy Corp. board of directors, the negotiation and acceptance of a mutually agreed upon purchase price, execution of a definitive purchase agreement, consent of the other project investors to the assignment of the membership and net profits interests by the Trust and Beechwood to RedHawk, the transfer of the Avior right to purchase, satisfactory completion of legal due diligence, and the closing of acceptable financing or additional equity capital, if necessary.
This release may contain forward-looking statements. Forward-looking statements are all statements other than statements of historical fact. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. The words “anticipate,” “may,” “can,” “plans,” “believes,” “estimates,” “expects,” “projects,” “targets,” “intends,” “likely,” “will,” “should,” “to be,” “potential” and any similar expressions are intended to identify those assertions as forward-looking statements.
Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from that projected or suggested herein due to certain risks and uncertainties.In evaluating forward-looking statements, you should consider the various factors which may cause actual results to differ materially from any forward-looking statements including those listed in the “Risk Factors” section of our latest 10-K report.Further, the Company may make changes to its business plans that could or will affect its results. Investors are cautioned that the Company will undertake no obligation to update any forward-looking statements.
Daniel J. Schreiber, CEO
G. Darcy Klug, CFO
SOURCE: Independence Energy Corp.