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Bentley Commerce to Acquire $5 Million in Resort Condos and Suites in Exchange for $5 Million Trade Credit to Complete New Resort Hotel
February 24, 2004 06:02:00 (ET)
LOS ANGELES, Feb 24, 2004 (BUSINESS WIRE) -- Bentley Commerce Corporation's (BLYC, Trade) new Corporate Trade Group will provide $5 million in cash equivalent trade credit funding to a Caribbean resort in exchange for an equal amount of resort condos, suites and rooms that it plans to re-market for cash to vacation and resort travelers. Bentley Commerce will also market a portion of the room inventory through its Bentley Crump Barter Network of 180 independent trade exchanges with about 50,000 companies that trade through them, to expand trade opportunities available to its members.
Bentley Commerce's first trade credit funding of a resort, was engineered together with Intertrade Capital Group, its strategic alliance partner. It will assist a U.S. based company that specializes in resort and hotel development to complete one of its Caribbean resorts located on the North Coast of the Dominican Republic near Cabarete. It includes a 340-acre master-planned residential beach-front resort community, a 180 all-suite condo-hotel and conference center, plus approximately 300 homesites, an 18-hole golf course, sites for additional hotels, a commercial shopping center and casino.
Under the agreement signed this week, Bentley Commerce will advance $5 million in cash equivalent trade credits that will be used to reduce the resort's cash requirements for the purchase of building materials, furniture, fixtures and equipment, printing and media. Bentley Commerce also has an option to receive a 10% equity share of the completed $100 million resort village project for $1 million in Bentley Commerce stock, pursuant to the resort reaching certain milestones. Bentley Commerce will also provide the resort with marketing and international sales expertise, as well as introductions to its corporate clients, especially those in its commercial and industrial buying consortium.
"When the project is completed," said Bruce Kamm, Bentley Commerce's CEO and the Managing Director of its Corporate Trade Group, "Bentley Commerce will sell most of its acquired inventory of condos and room nights for cash, which we believe will result in substantial revenue. We will also market some of the room nights for trade dollars. Our hospitality trade credit funding initiative will also provide us with an inside track on resort hotel rooms for barter, one of the most demanded areas of personal and cooperate barter, as well as present us with excellent opportunities to obtain equity positions in new resorts.
"Bentley's Hospitality trade credit funding initiative is an extraordinary opportunity for resorts and hotels requiring financing for property development, refurbishment and renovations to offset and reduce their cash requirements," Mr. Kamm concluded. "It allows the hospitality companies to pay a significant portion of their capital improvements, interest free with their own excess room capacity or future sales."
In Other News:
An agreement with Intertrade Capital Group to provide Bentley Commerce Corporation with the ability to facilitate trading under its corporate accounts receivable trading format was signed today. Intertrade will market and promote Bentley's corporate and industrial trading business and will negotiate and enter into Accounts Receivable Purchase Agreements. Intertrade will also manage the utilization or unwinding of cash credits by providing Bentley's corporate and industrial trade clients with cash equivalent credit spending opportunities. The agreement also joins the Bentley Crump Barter Network with Intertrade's team of international trade finance and corporate barter specialists. Bruce Kamm, new CEO of Bentley Commerce Corporation, is the founder and managing Director of Intertrade.
About Bentley Commerce Corporation:
Bentley Commerce Corp. is a business-to-business, Internet e-commerce company that seeks to establish a new marketplace and distribution channel for worldwide barter and trade. Through the development of a seamlessly integrated family of online barter services, it envisions that most barter transactions can be handled over the Internet in real time, with its proprietary VirtualBarter software. Bentley intends to serve as a clearinghouse for barter trades for fortune 500 trading partners, scores of existing retail barter exchanges that serve companies of all sizes, corporate barter companies that serve large multinational corporations, trade associations and their member companies, as well as media and travel agencies.
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