CyberAmerica Sells Raw Land
SALT LAKE CITY--(BUSINESS WIRE)--July 21, 2000--CyberAmerica Corp. (OTC BB: CYAA) ("CYAA") Friday announced that it has purchased 2.85 million restricted shares of Chattown.com Network Inc. (CTWN) from World Alliance Consulting Inc.(World Alliance is a 100 percent owned company of Allen Wolfson).
In return, CYAA agreed to transfer all of its interest or its subsidiaries' interest in the following companies:
*T Oasis International Corp. Diversified Holdings V Inc. Adobe Hills Ranch II, LLC Diversified Land & Cattle Co. Diversified Holdings II Inc. Great Basin Water Corp. Diversified Holdings III Inc. Lexington 3 Mile East Terrace Lexington 4 Mile East Terrace Mountain Estates Inc. Mountain Estates Inc Lexington One Mile East Little
Pigeon Mountain Estates Inc
All of these companies own parcels of raw mostly undeveloped land
in Elko County, Nev. or Box Elder County, Utah. The transfer of
these companies will serve to remove non-performing raw land assets
from CYAA's books while replacing them with stock in a company which
CYAA believes is a good investment.
The value of the transferred companies is $857,912 or less than 10
percent of CYAA's book value of fixed assets. The stock received is
valued, as of July 18, 2000 (transfer date), at $1,514,062 or $.53125
per share. Consequently the company will book a gain on the sale of
assets of approximately $656,150 in the third quarter.
However, due to the nature of stock investments, this gain could
be eliminated by a downturn in the market or this stock.
CYAA feels this deal not only accomplishes a shift of
non-performing assets to potentially high performing assets, but also
serves to reduce negative cash flows by $332,500 annually and interest
expense by approximately $207,000 over the next 12 months.
CYAA recognizes this as the second step in eliminating Wolfson,
who was to play a significant role in developing the raw land, as a
control person and limit his role as a consultant to the company. The
first step in this process was to buyback a large percentage of his
CYAA stock (see press release dated July 11, 2000) and reduce his CYAA
holdings below 10 percent.
For more detailed information on the transferred companies and the
real estate they own, see "Item 2. Description of Property" in CYAA's
Dec. 31, 1999 form 10KSB. CYAA continues to look forward to
streamlining its operations, evaluate each holding, and develop
properties and business lines that show promise for the future.
CyberAmerica strongly suggests that the above information be read
in conjunction with its Form 10-KSB for Dec. 31, 1999, Form 10-QSB for
the quarter ended March 31, 2000, and Form 8K filed on July 20, 2000.
The above documents can be viewed at www.sec.gov.
A number of statements contained in this press release are
forward-looking statements which are made pursuant to the Safe Harbor
provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements involve a number of risks and
uncertainties, including the timely development, and market acceptance
of products and technologies, competitive market conditions,
successful integration of acquisitions and the ability to secure
additional sources of financing.
The actual results that CYAA may achieve may differ materially
from any forward-looking statements due to such risks and
uncertainties.
CONTACT:
CyberAmerica Corp., Salt Lake City
Richard Surber, 801/575-8073
Fax: 801/575-8092
KEYWORD: NEVADA UTAH
BW0209 JUL 21,2000
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