Europa Cruises Corporation Announces It Has Entered Into an Option Agreement Relating to Its Three Operating Ports
PR Newswire - January 06, 1999 08:14
MADEIRA BEACH, Fla., Jan. 6 /PRNewswire/ -- Europa Cruises Corporation (OTC Bulletin Board: KRUZ) announced today that on December 30, 1998, it had entered into an Option Agreement and letter of understanding with International Hospitality, Inc., a publicly traded Canadian corporation. Under the terms of the agreement, International Hospitality, Inc. agreed to pay Europa a $300,000 refundable option fee in return for the exclusive right to negotiate with Europa for a thirty day period of time with respect to operating and managing one or all of Europa's three operations in Miami Beach, Florida, Madeira Beach, Florida and Ft. Myers, Florida. Under the terms of the Option and letter of understanding, assuming a final agreement is reached as to all three ports, Europa would receive a minimum of $280,000 per month from International Hospitality, Inc. or a subsidiary thereof, in return for the right to operate and manage its three ports. Hospitality would be responsible for payment of any and all costs and expenses incurred in operating the vessels and ports, including any and all lease related payments, mortgage-related expenses, marine expenses, repair and maintenance expenses and payroll-related expenses. The Company is in receipt of a refundable option payment in the amount of $300,000. The option payment is refundable in sixty days in cash or stock, at the Company's option, in the event no agreement is reached.
Deborah A. Vitale, President of Europa Cruises Corporation, commenting on the agreement, stated: "In addition to the recent lease of the Stardancer, this is another potentially excellent agreement for this Company. The agreement, if consummated with respect to all three ports, together with the lease of the Stardancer, has the potential for generating a profit for the Company in 1999."
Europa Cruises Corporation is one of the largest off-shore gaming operators in the United States. It currently employs approximately 400 employees and owns and operates gaming ships out of ports located in Miami Beach, Ft. Myers, and Madeira Beach, Florida. In addition to blackjack, poker, slot machines, craps, and sports betting, the cruises offer fine dining, dancing and entertainment.
The Company, through its wholly owned subsidiary, Casino World, Inc., intends to develop a destination casino resort at its 404 acre site in Diamondhead, Mississippi. The site, located immediately off Interstate 10, is adjacent to a site on which Circus Circus Enterprises, Inc., also intends to develop a destination casino resort and hotel.
SOURCE Europa Cruises Corporation
/CONTACT: John R. Duber, Director and Director of Investor Relations of
Europa Cruises Corporation, 440-331-0194 or 440-331-0195/
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