MPH Ventures Corp. : MPH Ventures to Invest in Cash-Flowing Travel Media Company Servicing Travelers to Cuba by Signing LOI t...
May 27 2015 - 3:00AM
TSX Venture Exchange Symbol: MPS
Email: info@mphventurescorp.com
May 27, 2015
Vancouver, BC -
MPH Ventures Corp. (TSX-V: MPS) (OTCBB: MPSFF) (Frankfurt:
IJA2) (the "Company") is pleased to announce that it has entered
into a Letter of Intent ("LOI") which outlines the general terms
and conditions of a proposed transaction with certain shareholders
of Travelucion S.L (the "Selling Shareholders") pursuant to which
the Company shall acquire a 20% minority interest in Travelucion
S.L in exchange for common shares of MPH Ventures with an option to
acquire the remaining 80% interest.
Travelucion is a cash-flow
positive travel media company that specializes in travel marketing,
electronic reservation and online booking solutions for
international visitors to Cuba. It owns one of the most significant
portfolios of Cuba focused web properties and domains that have
been promoting Cuba and offering online travel services to the
Caribbean nation since 1995. Recently, Travelucion's revenues have
been increasing in the wake of the notable shift in American policy
towards Cuba as diplomatic relations between the two nations begin
to normalize and US travel restrictions expected to gradually
relax.
Travelucion owns 100% of over 450
web assets popularizing Cuban Culture, Music, Celebrities, +60
major destinations, Golf, Banking and Commerce which collectively
generate approximately 20 million page-views per year. Through
legacy agreements with Cuba's largest travel companies,
Travelucion's emblematic e-commerce brands like Havanatur.com, Cuba
VIP and GoCuba provide the company with access to a broader and
more diverse portfolio of national travel and tourism packages in
Cuba than any other travel provider. Travelucion is also
uniquely established to handle the travel requirements of qualified
US travelers to Cuba. This allows permitted US travelers, in
addition to non-US travelers, the ability to indulge in high end
hotel and spa accommodations or create uniquely Cuban travel
packages with exclusive private home rentals, exotic/antique car
services and access to a multitude of exhilarating guided or
self-discovery tours across Cuba. Travelucion has also developed a
strong social media platform consisting of over 60,000 passionate
Cuba social media followers across Facebook, Twitter, Pinterest and
Instagram.
MPH Ventures and Travelucion will
continue to expand the existing travel and Cuba focused marketing
initiatives in numerous sectors with a specific spotlight on the
emerging US-Cuba travel market, whilst launching the development of
mobile and web-based interfaces that will allow the company to
offer near real-time reservations based on existing technology
available for Cuban hospitality, leisure and travel services. This
solution will permit all visitors to preview and book private homes
directly from their phones, order classic car tours on demand,
reserve private restaurants, tours and adventures in real time, yet
with a uniquely Cuban style. The company is also preparing
it's over 450 multi-language Cuba web properties for Global
Distribution System (GDS) integration in preparation for GDS
real-time bookings through Amadeus, Abacus and, when authorized,
American GDS companies Travelport and Sabre.
With the most significant shift in
American policy towards Cuba in over fifty years, MPH Ventures is
continuing to evaluate potential investment opportunities regarding
Cuba.
The LOI was negotiated at arm's length and is
non-binding. Both MPH Ventures and Travelucion agree that
preparation and execution of a definitive agreement (the
"Definitive Agreement") is required, such Definitive Agreement to
contain the terms and conditions substantially set forth in the
LOI. In addition, the Definitive Agreement may include additional
terms as each of the parties might agree after good faith
negotiations. There can be no assurance that a
Definitive Agreement will be
completed as proposed or at all.
MPH Ventures shall acquire from
the Selling Shareholders a 20% equity interest in Travelucion for
the issuance of 4,000,000 MPH Venture shares at a deemed price of
$0.05 per share. On closing, MPH Ventures will become the
registered holder of 20% of the issued and outstanding shares of
Travelucion. Closing of the acquisition of the initial 20% interest
in Travelucion is anticipated to occur within 10 business days of
the execution of the Definitive Agreement and the acceptance for
filing of the Definitive Agreement by the TSX Venture Exchange.
MPH Ventures shall have a further
option, for a period of one year, provided that the Company has
acquired the initial 20% interest in Travelucion, to acquire the
remaining 80% (for a total of 100% interest) from the Selling
Shareholders. The Company will be required to issue a further
16,000,000 MPH Venture shares at a deemed price equal to the
previous 10-day volume weighted average price per share up to and
including the date notice is given by MPH Ventures to the Selling
Shareholders to acquire the remaining 80% of the issued and
outstanding shares of Travelucion.
About MPH
Ventures Corp.:
For further information on MPH
Ventures Corp. (TSX-V: MPS) visit the Company's website at
www.mphventurescorp.com .
MPH VENTURES CORP.
"Jim Pettit"
______________________________
James G. Pettit
President
For further information contact
myself or:
Don Myers
MPH Ventures Corp.
Director
Telephone: 604-687-3376
Toll Free: 800-567-8181
Facsimile: 604-687-3119
Email:
info@mphventurescorp.com
NEITHER THE TSX VENTURE EXCHANGE
NOR ITS REGULATION SERVICES PROVIDER ACCEPTS RESPONSIBILITY FOR THE
ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.
This release includes certain statements that may
be deemed to be "forward-looking statements". All statements in
this release, other than statements of historical facts, that
address events or developments that management of the Company
expects, are forward-looking statements. Although management
believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are
not guarantees of future performance, and actual results or
developments may differ materially from those in the
forward-looking statements. The Company undertakes no obligation to
update these forward-looking statements if management's beliefs,
estimates or opinions, or other factors, should change. Factors
that could cause actual results to differ materially from those in
forward-looking statements, include market prices, exploration and
development successes, continued availability of capital and
financing, and general economic, market or business conditions.
Please see the public filings of the Company at www.sedar.com for
further information.
Suite 1610 - 777 Dunsmuir Street,
Vancouver, BC, Canada, V7Y 1K4
www.mphventurescorp.com
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: MPH Ventures Corp. via Globenewswire
HUG#1924052
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