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IBAC Corporation Completes the Sale of Its Florida Restaurants and Now Is Poised to Take New Direction
Apr 16, 2007 8:56:00 AM
NEW YORK, NY -- (MARKET WIRE) -- 04/16/07 -- IBAC Corporation (PINKSHEETS: IBCX) the New York-based hospitality provider today announced it has completed the sale of its Florida Restaurant subsidiaries (The Bonita Springs Restaurant Group, Inc.) and (The Sanibel Restaurant Group, Inc.) to Prime Restaurants Inc. for $4,100,000 dollars. The new company Prime Restaurants, Inc. will take possession after a transition period of two weeks.
IBAC Corporation will start to redesign its business model seeking better more established and less risky business investments, within major cities within proven stable industries. The company still maintains its 51% state (ownership) in The Memphis International Hotel & Restaurant Property and will seek a buyer for the property. The company values the property between 4 to 5 Million dollars.
IBAC Corporation was started in September of 2004 and had a business model of acquiring distressed properties within the hospitality industry, and acting as a holding company providing the funding for these acquisitions while maintaining a majority interest in them, while the minority partners were the operators of the businesses, the premise of that business model was to enhance accelerated growth without the management headaches on a day to day basis of the operations. Needless to say that strategy did not work out the way the company anticipated.
"The company now will focus on only 100% company owned acquisitions with proven operating revenues and profits with a stable history. We are reviewing several opportunities at this time and will choose the best opportunities going forward," said Wayne Burmaster, President, IBAC Corporation.
Mr. Burmaster also stated, "We are going back to the drawing board and building a company model the right way this time with the lessons we learned from the past couple of years."
