Message #84 From:
NewsBot Date: March 18, 2007 11:08:00 PM
UPDA News UPDA Amends Agreement to Sell Trading and Storage Subsidiaries - Now Set to Acquire Controlling Interest in Continental Fuels
SAN ANTONIO--(BUSINESS WIRE)--Universal Property Development and Acquisition Corporation (OTCBB:UPDA)(FWB:UP1)(BCN:UP1)(GER:UP1)(MUN:UP1)(STU:UP1), has negotiated an amendment to the terms of the proposed agreement with Continental Fuels, Inc. (OTCBB:CNDI)(FWB:CIQB) through which UPDA would sell its trading and storage subsidiaries. Under the revised terms of the proposed transaction, UPDA would transfer its ownership of the capital stock of US Petroleum Depot, Inc. to Continental Fuels for the aggregate consideration of $7.5 million in cash and Continental preferred stock.
Through this amendment, the consideration received by UPDA will now consist of $2.5 million in cash and shares of convertible preferred stock of Continental valued at $5,000,000.00. The shares of convertible preferred stock received by UPDA will vote on an as converted basis and will represent in excess of 70% of the voting rights of Continental’s then outstanding common stock. Therefore, the closing of this proposed transaction will result in UPDA receiving a controlling interest in Continental Fuels.
In addition, in connection with this transaction, Continental and its note holders have negotiated a reduction in the rate at which certain of Continental’s outstanding debt will be convertible into common stock.
The Closing Date for the transaction remains scheduled for April 2, 2007.
Universal Property Development and Acquisition Corporation (OTC BB: UPDA) focuses on the acquisition and development of proven oil and natural gas reserves and other energy opportunities through the creation of joint ventures with under-funded owners of mineral leases and cutting-edge technologies.
Statements contained in this press release that are not based upon current or historical fact are forward-looking in nature. Such forward-looking statements reflect the current views of management with respect to future events and are subject to certain risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected, or described pursuant to similar expressions.
