CAVU Resources, Inc. Completes Merger of Its Subsidiaries, Updates the Proxy and Its Future Direction
Today : Thursday 18 August 2011
CAVU Resources, Inc. ("CAVU"), which trades as OTC: CAVR.PK, announced today that CAVU Resources, Inc. subsidiaries, CAVU Energy Services, LLC, CAVU Resources One, LP, has completed the merger into FILO Quip Resources, LLC along with the collective assets, debts and funding commitments, which were converted into an Oklahoma corporation re-named CAVU Energy Services, Inc. ("CVE"). CAVU Resources, Inc. will update its Proxy and describe the company's future direction.
CAVU's recent Proxy requires a vote of the shareholders to approve the spinout of its newly merged subsidiary CAVU Energy Services, Inc. as a standalone public company. The management has spent the last three years building value for its shareholders; the proposed spinout will give CAVU shareholders ownership in two public companies. To clear up any confusion relating to this transaction, the shareholders of record on July 27, 2011 will vote the Proxy; in the event that the shareholders approve the spinoff of the subsidiary as proposed in the Proxy, then the shareholders of record as of August 19, 2011 will receive shares of CVE on a 1:40 basis. The shares of common stock of CVE will be issued with a restrictive legend that will prohibit the resale of such stock until CVE files a registration statement on Form S-1.
Immediately following the Annual meeting, the company will start the process of taking CVE public, with plans to register the company on one of the listed exchanges. Minimum assets, revenue and share prices are a requirement for listing; we anticipate meeting these, as this relates to a true value as a dividend to the CAVU Resources shareholder.
Since the formation of CAVU management has focused on building value, aligning partnerships and targeting acquisitions, with this spinout, shareholders will enjoy immediate benefits, diversification with a greater chance of success in the future. Management has developed a series of proprietary strategies that will separate the risks associated with the development of acquiring new oil and gas leases and the early losses generally associated with such development of these leases.
It will also reduce competition within CAVU for capital and resources. As a separate entity, CVE will have direct access to the public and private capital markets to allow it to seek additional financing for its operations and growth without having to compete with CAVU with respect to capital and resources. As an independent entity, CVE will be in a position to pursue strategies its Directors and management believe will create long-term stockholder value for both CVE assets and products, including organic and acquisition growth opportunities, after its anticipated move to a listed exchange.
It will also allow the management of each separate company to design and implement corporate strategies and policies that are based primarily on the business characteristics of that company. Also at the same time, maintain a sharper focus on core business, growth opportunities and concentrate financial resources wholly on its own operations. CVE will seek out acquisitions in the core business of Oil and Gas operations, waste water transportation, disposal and reclamation opportunities, utilizing seasoned management, with goals to become a leader in its industry.
"With the operational side of the business now in the proposed spinoff, CAVU can continue to focus on what it does best: concentrating on its current leases, producing oil and gas, acquiring additional undervalued opportunities, while utilizing its current assets, infrastructure and project funding to grow and continue to look for ways to increase shareholder value with plans to continue to provide additional dividends from its successes. With these two operating entities, we believe our shareholders will benefit from both the unleashed value and potential growth going forward. We look forward to meeting with our fellow shareholders at the Annual Shareholders Meeting in Dallas, TX on September 16th," stated William Robinson.
Kgem
