"CEA LAB, Inc. also previously reported that it has entered into an agreement to sell the assets and business of its wholly owned subsidiary, Fifth Avenue Communications to Auburn Equities, Inc.,"
Cea Lab, Inc. To Sell Andros Island, Bahamas Property To Nabco, Inc. For $1,500,000
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for $1,500,000
WICHITA, Kan., Feb. 24 /PRNewswire/ -- CEA LAB, Inc., (OTC Bulletin Board: CEAL) announced today that the Company has signed a contract to sell its 75-acre beachfront property on Andros Island, Bahamas to NABCO, Inc., (OTC Bulletin Board: NBCO) for $1,500,000. The Company said it will receive 100,000 restricted common shares of NABCO, Inc., valued at $150,000 and a promissory note from NABCO, Inc., in the principal amount of $1,500,000 which will bear interest at the rate of six percent per year. Under the terms of the promissory note, CEA LAB, Inc., is to receive an interest payment of $81,000 cash each year for 10-years and receive the $1,350,000 principal amount due at the end of the tenth year. The Company said the $1,350,000 promissory note is to be secured by the property and that it expects to close the transaction on or before February 28, 1997.
Jay Boisdrenghien, president of NABCO, Inc., stated, "We are very pleased to acquire this prime beachfront real estate property. We plan to begin a search for a joint venture partner or partners to develop a hotel, marina, and casino on the property and feel that our shareholders will, eventually, realize a good return on this investment."
Jeffery N. Young, president of CEA LAB, Inc., said, "Our shareholders will benefit from this transaction as the Company will receive the interest from the promissory note and, eventually, the principal. In addition, due to the 100,000 shares of NABCO, Inc., we will own, we will share in the anticipated future success of NABCO. The Company's cost basis in the Andros Island property is $750,000, so we will realize a nice profit on this sale. The Company will report the gain as a deferred gain until the promissory note is paid in full."
NABCO, Inc., is a public-owned holding company which owns franchise rights to several fast food restaurant chains. CEA LAB, Inc., is a public-owned holding company with interests in communications, publishing, investment banking, and gourmet coffee. CEA LAB, Inc., has announced plans to spin-off its wholly owned subsidiary, Gourmet's Choice Coffee Company, Inc., to its shareholders on record on March 14, 1997 and on March 31, 1997, to issue one share of Gourmet's Choice common stock for each CEA LAB share owned at the record date.
CEA LAB, Inc. also previously reported that it has entered into an agreement to sell the assets and business of its wholly owned subsidiary, Fifth Avenue Communications to Auburn Equities, Inc., (OTC Bulletin Board: AEQS) for $1,500,000. CEA LAB, Inc., said it is to receive $250,000 cash and 1,250,000 shares of Auburn Equities, Inc., restricted common shares. The Company said it hopes to close the asset sale with Auburn later this year.
SOURCE CEA LAB, Inc.
Copyright ¸ 1997, PR Newswire, all rights reserved.
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