Viking Investments Group, Inc. Executes Agreement With Cytron Capital Group Inc. Concerning Real Estate Project in Comox, British Columbia
NEW YORK, NY -- (Marketwired) -- 02/04/15 -- On January 14th, 2015, Viking Investments Group, Inc. ("Viking") (OTCQB: VKIN) announced the execution of a Letter of Intent with Cytron Capital Group Inc. ("Cytron") wherein the parties outlined the essential elements of a joint venture concerning the acquisition, development and/or management of various projects in the Real Estate and Energy sectors (the "LOI"). On February 3rd, 2014 Viking announced the execution of a Share Purchase Agreement with Cytron regarding one of the real estate ventures contemplated in the LOI.
Viking is now pleased to report it executed a Share Purchase Agreement ("SPA") on February 3rd, 2015 with Cytron regarding the second real estate venture contemplated in the LOI.
Pursuant to the SPA, Viking has agreed to purchase 50% of the issued and outstanding shares of a wholly-owned subsidiary of Cytron ("Realco"), subject to certain conditions being satisfied, including Realco being the legal and beneficial owner of the particular lands in question (the "Property") which are located near Comox, British Columbia. In that regard, Realco has entered into an agreement to purchase the Property for CDN$30M (the "APS"). The APS is conditional upon Realco performing and being satisfied with additional due diligence concerning the Property and viability of the proposed development. This condition is to be satisfied on or before February 11th, 2015 and the transaction is scheduled to close on March 13th, 2015.
Comox (www.comox.ca) is a town located on the southern coast of the Comox Peninsula in the Georgia Strait on the eastern coast of Vancouver Island, British Columbia. The area has become a popular tourist attraction due to its good fishing, local wildlife, year-round golf and proximity to the Mount Washington ski area, the Forbidden Plateau, and Strathcona Provincial Park. The town is also home to Canadian air force base CFB Comox, an international airport (www.comoxairport.com) and the HMCS Quadra Sea Cadet training facility. The nearby Comox Glacier is visible from many parts of the town and is the area's signature landmark. Comox is well served by a modern new highway south to Nanaimo and Victoria, and north to Campbell River. The older Island Highway serves the logging, mining and fishing communities north of Campbell River. There is a ferry to Powell River on the Canadian Mainland, and Comox Valley Airport which has several scheduled flights daily to the City of Vancouver and island destinations. The mild climate has attracted many retirees to the area, resulting in a high rate of growth, an increase in the median age of residents, and a sharp appreciation in property values.
Cytron, through Realco, intends to develop and sell approximately 741 residential building lots at the Property as part of its phased development plan over the next seven years. Initial plans also contemplate a community center and generous green space. Cytron estimates the servicing and infrastructure costs for the residential component of the project to be approximately CDN $15M.
The SPA is conditional upon, among other things, Viking obtaining financing to facilitate the acquisition and development of the Property, on terms satisfactory to Viking. On closing of the transactions contemplated in the SPA, Viking has agreed to issue to Cytron 1,000,000 common shares in the capital stock of Viking plus 1,000,000 warrants entitling Cytron to purchase an additional 1,000,000 common shares of Viking at a price equal to $2.50 per share, expiring March 16, 2017.
Cytron Capital Group Inc. is a North American based investment capital group that provides capital and corporate finance services, primarily focused on real estate, property development, natural resources, including agriculture, and the energy sector.
Viking aims to acquire, invest in and/or provide professional advisory and consulting services to companies undergoing or anticipating periods of rapid growth, significant change or ownership transition. Viking's primary focus is directed toward evaluating and completing investments in North America, mainly in the Oil & Gas and Real Estate sectors, with appropriate diversification and balance between each division. Viking targets under-valued investments with realistic appreciation potential and a defined exit strategy.
Viking is not an investment company, as defined by the Investment Company Act of 1940.
Safe Harbor Statement This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), including all statements that are not statements of historical fact regarding the intent, belief or current expectations of the company, its directors or its officers with respect to, among other things: (i) the company's financing plans; (ii) trends affecting the company's financial condition or results of operations; (iii) the company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors including the risk disclosed in the company's Forms 10-K and 10-Q filed with the SEC.
For additional information please contact:
James A. Doris
President and C.E.O.
Viking Investments Group, Inc.
1330 Avenue of the Americas, Suite 23A New York, NY 10019
Source: Viking Investments Group, Inc.
Released February 4, 2015