Cuba Ventures Corp signs letter of intent to acquire Licensed Florida based travel agency. Synopsis of Trump administration policy changes vis-à-vis Cuba. CEO Steve Marshall appears on Canada's BNN...
VANCOUVER, British Columbia, June 19, 2017 (GLOBE NEWSWIRE) -- Cuba Ventures Corp. (TSX-V:CUV) (OTCBB:MPSFF) (the "Company") is pleased to announce that it has entered into a Letter of Intent ("LOI") which outlines the general terms and conditions of a proposed transaction with certain shareholders of International Business & Travel Opportunities, LLC, a duly licensed Travel Agency located in Florida USA (the "IBTO Selling Shareholders") pursuant to which the Company shall acquire a 30% minority interest in IBTO in exchange for common shares of Cuba Ventures Corp and transaction costs. Further, Cuba Ventures Corp CEO, Steve Marshall, provided commentary on CNN as Air-force One landed in Miami, during the highly anticipated Presidents address to the nation concerning the renewed United States policy towards Cuba in the Trump era. Mr Marshall provides investors with a summary of U.S policy changes, as per the president's speech, signed executive order and new (OFAC) regulations issued on 16th June 2017.
Foreword on President Trump's national address on 16th January 2017
Cuba Ventures Corp CEO Steve Marshall provides a foreword to all investors:
"Over the past six months, the impending position of the incoming U.S administration of President Trump, concerning future relations with Cuba and, more specifically, the fate of the previous administration's rapprochement to the Republic of Cuba, has produced augmented uncertainty. Today, the official position of the government has been revealed and, both management and I can establish that the underlying effects of these subtle policy modifications are unlikely to affect the financial prospects or revenues of Cuba Ventures Corp. Our rationale is based upon two principal facts. Firstly, Cuba Ventures' income from the United States is still only a negligible amount of the company's total revenue. Cuban-American visitors make up the majority of this revenue, as they visit family and friends on the island. Cuban Americans have remained exempt from both the Obama and, the new Trump policies. Mainly, they continue to be free to travel to their homeland as many times as is desired. Secondly, neither Cuba Ventures Corp nor its subsidiaries, have any commercial relationships with entities or individuals associated with; Cuban military, intelligence or security services. The now clarified policy emanating from the White House will thus allow Cuba Ventures to charter a path to continued growth and success within the confines of these policies. Finally, we also foresee large revenue growth resulting from the acquisition of IBTO and, the dissemination across our Cuba media network of legal group travel packages within the United States."
Proposed acquisition of International Business & Travel Opportunities, LLC
IBTO is a cash-flow positive, duly licensed, Florida USA based travel agency that specializes in travel to Cuba. IBTO organizes trips to Cuba under the auspices of US regulations. International Business & Travel Opportunities's has specialized in educational and cultural trips to Cuba for groups of United States citizens desirous of visiting Cuba.
International Business & Travel Opportunities, LLC specializes in thematic upscale groups traveling to Cuba. International Business & Travel Opportunities, LLC, with its exclusive itineraries, has hosted; Doctors, Lawyers, Accountants, Contractors, Hunting trips, fishing trips, hiking and special festivals in accordance with USA travel restrictions. Steve Marshall, Cuba Ventures CEO, stated, "The planned acquisition of International Business & Travel Opportunities, LLC allows us to tap the ever growing interest by the US traveler to Cuba, exposing travel itineraries compliant with latest June 16th policy changes, as set out by office of foreign assets control, to the over 35 million page views generated by our 432 websites and booking platforms, of which over 38.9% of web visitors now originate from the United States. Through IBTO, the company will be able to promote and market; flights originating from the United States, Cruises originating from Florida (and, when available, the entire U.S) and travel packages compliant with the 16 June 2017 U.S. regulations and, those thereafter."
Cuba Ventures Corp and International Business & Travel Opportunities will continue to expand the existing travel and Cuba focused marketing initiatives in numerous sectors with a specific spotlight on the renewed US-Cuba travel market as per President Trumps 16 June address.
The LOI was negotiated at arm's length. Both Cuba Ventures Corp and International Business & Travel Opportunities agree that preparation and execution of a definitive agreement (the "Definitive Agreement") is required on or before 1st Sept 2017, such Definitive Agreement to contain the terms and conditions substantially set forth in the LOI. In addition, the Definitive Agreement may include additional terms as each of the parties might agree after good faith negotiations. There can be no assurance that a Definitive Agreement will be completed as proposed or at all.
Cuba Ventures Corp shall acquire from the Selling Shareholders a 30% equity interest in International Business & Travel Opportunities for the issuance of 500,000 Cuba Ventures Corp shares at a deemed price of $0.05 per share and, a 10,000 CAD cash consideration. On closing, Cuba Ventures Corp will become the registered holder of 30% of the issued and outstanding shares of International Business & Travel Opportunities. Closing of the acquisition of the 30% interest in International Business & Travel Opportunities is anticipated to occur after the signing of the execution of the Definitive Agreement, on or before 1st September 2017 and, the acceptance for filing of the Definitive Agreement by the TSX Venture Exchange.
Synopsis of the changes in U.S. policy as set out by the Trump administration
On June 16th 2017 President Donald Trump addressed the nation, outlining his administration's policy towards the Republic of Cuba. While the president proclaimed a complete change in policy, the following aspects of the Obama administrations Cuba rapprochement policies remain intact:
- Continuation of the U.S. Embassy in Cuba & Diplomatic relations
- Unlimited travel by Cuban Americans to their homeland
- Unlimited remittances by qualified American citizens to qualified residents in Cuba
- Continued Cruise services from the United States to the Republic of Cuba
- Continued commercial flights from the United States to the Republic of Cuba
- Continued Travel to Cuba undertaken by American travelers who visit the island on people-to-people group travel itineraries
- Continued business negotiations between US and Cuban entities not associated with the Cuban military, intelligence, or security services.
- Obama's exclusion of Cuba from the state sponsor of terrorism list
- Obama's annulment of the wet-foot/dry-foot immigration policy
Notable Trump Administration policy changes, in contrast to the Obama administration.
- Restrictions on direct transactions with entities related to the Cuban military, intelligence, or security services
- The State Department will be publishing a list of entities (Cuban military, intelligence, security services) with which direct transactions generally will not be permitted. This list will almost certainly include; Companies, entities, Hotels, On-Site services, Transportation Services, etc. owned or controlled by Cuban armed forces controlled businesses and commercial interests.
- Abolition of individual (sole traveler) people-to-people visits to Cuba. Such visits, during the Obama era, in which U.S. citizens were not members of a group of travelers and essentially traveled alone, with or without a pre-arranged trip itinerary (known as a general license), will be prohibited.
Cuba Ventures in the media
Cuba Ventures Discusses New US-Cuba Policy on CNN (ESPANOL)
Cuba Ventures Vito Echevarria Interviewed by Max Keizer of RT News on US-Cuban policy
Cuba Ventures Interviews with Al Jazeera Regarding US-Cuban Policy Changes
Cuba Ventures CEO Steve Marshall appears on Canada's BNN news:
Vito Echevarria of Cuba Ventures appears on Telemundo Washington
Cuba Ventures CEO Steve Marshall interviewed on uptick news radio
About Cuba Ventures Corp.:
Cuba Ventures Corp. is a publicly traded Canadian company capitalizing on the growth and unique opportunities in the USD $3.5 billion per year Cuban travel and tourism industry. Travelucion, a wholly owned subsidiary, is a digital media and marketing company which owns a vast portfolio of Cuba related websites and online portals providing travel information, featuring individual web assets for Cuba's popular cities and towns, online booking solutions and online reservations through proprietary software, catering to international visitors to Cuba. Travelucion's online travel division is a duly licensed retail travel supplier handling millions of dollars in sales annually.
Travelucion's 432 Cuba focused multilingual websites generate over 30 million page-views per year, directing traffic to the company's online booking and e-commerce sites. These online websites cover all facets of Cuba including over 80 travel destinations, hotels & resorts, bed & breakfast, tours, car rentals, restaurants, as well as Cuban culture, history, music, celebrities, sports, medical treatments and more.
Travelucion's revenues have been rapidly growing in the wake of the notable shift in American policy towards Cuba. With diplomatic relations now normalized and restrictions on qualified American travel to Cuba relaxed, opening of the multi-billion dollar travel market to the Caribbean nation is becoming a reality. Travelucion's continued media dominance over the past two decades has provided Cuba Ventures with a competitive advantage in the burgeoning Cuba travel and online media space. With the relaxing of rules for American travelers to Cuba and the potential of further easing, growth and investment opportunities are on the rise in Cuba.
Cuba Ventures consulting division harnesses over 60 years of combined advisor experience in submitting and, obtaining approval, for joint ventures, joint production agreements and import/export permits for foreign enterprises. More recently the company has taken a royalty approach for future agreements between third parties anxious to begin comercial operations with Cuba and, the company's Cuba Consulting Unit.
For further information on Cuba Ventures Corp. (TSX-V:CUV) or Travelucion visit the Company's website at www.cubaventures.com or www.travelucion.com. The Company has 72,412,487 shares issued and outstanding.
CUBA VENTURES CORP.
For further information contact myself or:
Cuba Ventures Corp.
Toll Free: 800-567-8181
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.
This release includes certain statements that may be deemed to be "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedar.com for further information.