ICAN NEWS: IBAC Corporation Completes Acquisition and Takes Possession of the Memphis Airport Ramada Hotel & Restaurant
Tuesday July 5, 9:07 am ET
MEMPHIS, Tenn.--(BUSINESS WIRE)--July 5, 2005--IBAC Corporation (ICAN:PK) today announced that they have completed the acquisition and have taken possession of the Memphis Airport Ramada Hotel & Restaurant that they won as high bidder at a public auction held on May 25, 2005.
The total cost of the acquisition was $1,925,000 plus closing costs and attorney's fees; the transaction was paid for with a short term first mortgage of $600,000 and the balance of $1,325,000 plus costs were paid in cash with a non interest bearing loan by IBAC Corporation President Edward W Hayter.
The property has an approximate initial (as is) appraised value of $3,500,000 thus giving the company an immediate equity of approximately $1,500,000 towards its balance sheet along with increased revenues to the company from room rates and the restaurant.
IBAC Corporation was represented on this transaction by Mr. Harry Hamlin Esq. of Mitchell, Williams, Selig, Gates & Woodyard, PLLC.
"We are very pleased with the on time completion of this acquisition as this choice property will increase the company's room inventory to a total of 327 and an additional restaurant located in a very popular city as we strive towards our stated goal of becoming a fully reporting company. The company continues to seek additional properties and is currently negotiating further potential acquisitions. I am extremely pleased with the rapid growth we have experienced in such a short period of time (less than a year) and will continue to utilize all available resources in our quest to reach the company's stated objectives. I also would like to give a very special thanks to Mr. Harry Hamlin Esq. for his tireless work on this Acquisition," said Edward W. Hayter, President IBAC Corporation.
The Memphis Airport Ramada Hotel & Restaurant are 2 separately deeded parcels. The Hotel is a 127 room Hotel located adjacent to the Memphis International Airport and 2 miles from the world famous Elvis Presley's Graceland. The property contains approximately 70,293 sf, and was constructed in 1986. It is a six story interior corridor hotel in superb condition and is situated on 1.548 acres. The restaurant is approximately 5100 sf and was also built in 1986 and is situated on .992 acres. Some additional features of the property include an outdoor pool & patio area and 182 parking spaces.
With the addition of this acquisition IBAC now operates businesses and employs over 100 people in Florida, Tennessee & Arkansas that includes a 200 room full service hotel, 127 room limited hotel, 7 restaurants (2 pending closing already contracted) 10,000 sf of banquet space and the exclusive concession, food, beverage & catering contract with the Pine Bluff Convention Center.
IBAC Corporation is a New York based holding company operating through its subsidiaries within the Hospitality, Food Service & Restaurant Industries.
Forward Looking Statements: This information includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties including, but not limited to, the impact of competitive products, the ability to meet customer demand, the ability to manage growth, acquisitions of technology, equipment, or human resources, the effect of economic and business conditions, and the ability to attract and retain skilled personnel as related to the restaurant industry. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
--------------------------------------------------------------------------------
Contact:
IBAC Corporation
Investor Relations, 718-891-8188
Fax: 775-320-5437
Investorrelations@ibaccorp.com
