Oriens Travel & Hotel Management Corp. (OTC Pink: OTHM) (PINKSHEETS: OTHM), the Next Generation International Hotel Brand Operator, operating its Hotel PURE brand, announced today, that Oriens has officially commenced the process of financing the Jaco Beach acquisition/operations through a two-part strategy, as its Costa Rican allied partners have begun drawing down capital from traditional, non-toxic, asset based capital resources.
In a previous announcement, management indicated it would look to deploy a two-part finance strategy. The first part being to seek traditional asset back financings to act as bridge capital; the second, to secure larger long-term equity based financing.
"Acquiring properties comes with a number of expenses; costs we have diligently looked to cover with the least amount of impact on the market," stated Ken Chua, President of Oriens Travel & Hotel Management. "While we understand the second phase of our multi-million dollar raise will eventually incorporate long-term equity financing, current expenses are just below half a million dollars. We find it very important to responsibly facilitate this smaller size funding, though a financing vehicle offering the greatest benefit to our market and stakeholders. Through our allied partners in Costa Rica, along with friendly investors in the States, we have seemingly been fortunate enough -- so far, to access capital without registering or selling any corporate stock."
Interestingly enough, because the acquisition process was partly delayed due to the excitement of Costa Rica's World Cup success, the estimated time of closing had been pushed back by roughly three weeks. Nonetheless, due to the strength of Oriens' key alliances, additional latitude was granted. This gave Oriens the ability to satisfy those obligations inherent to its various deal structures.
Mr. Chua concluded, "This process has certainly been challenging. What keeps us focused however, is the sheer value and confidence we expect will ultimately be delivered to our shareholders. When Oriens completes these acquisitions, re-launches our FROL, and begins managing new properties under a retooled brand, we are absolutely confident that our diligence will prove worthwhile. The time, dedication and commitment made by Oriens, our allied partners and those local investors who have extended us the opportunity to exhibit our competencies, will not be in vain."
Management has indicated that less than 11% of the pre-approved bridge capital has been utilized. Should the newly estimated closing times remain intact, little to no additional capital would be needed prior to the properties being fully acquired. Management has also indicated that the FROL rollout is partly being handled through these facilities in order to assure that the re-launch is able to occur early during the fourth quarter.
About Oriens Travel & Hotel Management Corp. (www.orienscorp.com) (OTC Pink: OTHM) (PINKSHEETS: OTHM) engages in the operation of hotels and resorts primarily in the United States and Central America under the Hotel PURE brand. The company also operates Friendly Reservations Online, a proprietary and sophisticated online booking system designed to execute reservations capture through Hotel PURE consumer facing websites, as well as individual hotel websites operated by Oriens on behalf of hotels branded under the Hotel PURE brand. Oriens is based in Las Vegas, Nevada.
Statements in this news release that are not historical facts, including statements about plans and expectations regarding products and opportunities, demand and acceptance of new or existing products, capital resources and future financial results are forward-looking. Forward-looking statements involve risks and uncertainties which may cause the Company's actual results in future periods to differ materially from those expressed. These uncertainties and risks include changing consumer preferences, lack of success of new products, loss of the Company's customers, competition and other factors discussed from time to time in the Company's filings with the Securities and Exchange Commission.
IR Div. (702) 483-0318
SOURCE: Oriens Travel & Hotel Management Corp