Hars Systems to joint venture with Executive Inn
Hars Systems Inc HSS
Shares issued 15,796,296 Aug 16 close $0.65
Tue 17 Aug 99 News Release
Mr. John Pfeffer reports
The company has approved a private placement of four million shares to
Executive Inn Inc. of Vancouver B.C., a company listed on the Alberta Stock
Exchange, and John Pfeffer, chairman and chief executive officer of the
company, at 62 cents per share, subject to regulatory approval and
completion of documentation. The proceeds will be used to support and
finance the development of the joint venture to be entered into with
Executive Inn, further enhance and develop software and enhance the
company's international voice reservation capabilities. Hars Systems and
its wholly owned subsidiary, VIP International Corporation, have also
signed a letter of intent to form a joint venture relationship with
Executive Inn for the following purposes:
to co-operate in the area of hotel brand development;
to co-operate in the area of sales, whereby the parties may work together
to develop other hotel and car rental brands;
to co-operate and share technological solutions, platforms, software and
equipment;
to co-operate in the development of a more robust voice reservation
service;
to co-operate in the area of marketing hotel clients;
to co-operate in the area of revenue and profit sharing as related to the
brand.
The joint venture will allow hotel clients to benefit from air-mile loyalty
programs, volume purchase programs, national advertising, property specific
marketing and other programs. It will also enable hotel clients to obtain
greater access to hotel property financing afforded to brands, strengthen
the relationship hotel properties have with VIP, and will give the company
access to markets previously out of reach because of the lack of a brand
name and product. VIP will continue to support and enhance its original
services provided to hotel chains and the independent hotel client, while
offering a brand solution to those in need of such a product. Kelly Blake,
president of VIP, said: "The joint venture with Executive Inn provides VIP
with a means of meeting the needs of clients and prospects in search of a
brand. It completes our basket of goods and gives our clients and prospects
a full range of product choices. This move will strengthen the service and
options afforded to all of VIP clientele."
Executive Inn has been a growing customer of VIP for over 12 years. The
company and Executive Inn have had discussions regarding the private
placement and joint venture over the past few months. The transaction
furthers the corporate objectives and strategy of the company. Management
is confident that this transaction will be of significant benefit to the
company.
VIP International Corporation is a worldwide leader in the provision of
Internet and travel agency airline global distribution and central
reservation services to the hospitality and car rental industries. The
company represents more than 3,000 individual hotel and car rental
locations in 66 countries. The company is a wholly owned subsidiary of Hars
Systems.
Executive Inn is a hotel branding, marketing and management company engaged
in the development of hotel licensing agreements under the Executive Inn
Hotels and Suites brand name. The company is rapidly growing with 10
premiere hotels and over 1,200 guest rooms in Western Canada and
Washington. |
