Affordable Homes of America, Inc. Signs Binding Joint Venture Agreement with Al Nasr Trading & Industrial Corporation
LAS VEGAS, Aug 17, 2000 /PRNewswire via COMTEX/ -- Affordable Homes of America, Inc. (OTC Bulletin Board: AHOA chart, msgs) ("Affordable Homes"), announces the signing of a binding Joint Venture with Al Nasr Trading & Industrial Corporation L.L.C. ("AL NASR"), domiciled in the Kingdom of Saudi Arabia. The Joint Venture agreement follows a Letter of Intent signed last week. The term of the Joint Venture is for three years, with an additional 25 years in options.
The highlight of the Joint Venture is the immediate provision by AL NASR of (1) a specific proposal for the establishment of a manufacturing plant for the Z MIX formula patented by Affordable Homes in at least one Middle Eastern country and (2) a working plan for at least four other countries (in the Middle East/Northern Africa) within seven working days. The manufacturing plant will place the Joint Venture in a formidable position to bid for low cost housing projects utilizing technical expertise developed entirely within Affordable Homes.
"Despite all the technological advances we see in the West, the larger part of the developing world continues to struggle to find solutions to very basic issues, and low cost housing must remain atop the agenda. Whereas the housing model developed by Affordable Homes exceeds the minimum standards in the U.S. and therefore should be totally acceptable to countries which are the subject of the Affordable Homes -- AL NASR Joint Venture Agreement, conditions in such countries dictate that low cost housing can only be addressed within the context of localized complexities including, in many instances, the availability of end user financing. It is those localized complexities which AL NASR will manage and leave Affordable Homes to focus solely on delivering a high quality, low cost end product," stated Mr. Adnan Khashoggi, a Director of AL NASR.
"To fully exploit the exciting opportunities provided by the Joint Venture with AL NASR, Affordable Homes may rely on equity financing and, for that reason, a private placement offering may be conducted shortly. This is in keeping with our new direction voted by the Board to make sure the Company remains debt free," states President and CEO Merle Ferguson. "Clearly, those investing in Affordable Homes or those trading its stock should be aware that the success of the Joint Venture will be accelerated by consummating a private placement in a timely manner."
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1955: Certain information contained in this release contains forward-looking statements that involve risks and uncertainties, including but not limited to, those relating to development and expansion activities, dependence on existing management, financing activities, domestic and global economic conditions, and market competition.
Source: Affordable Homes of America, Inc.
Contact:
Mark Cohen of The Pinnacle Group, 516-773-2477; or Gary Smolen
of Global Financial Resources, Inc., 877-822-8274; or Rich Kaiser of Yes
International, Inc., 800-631-8127, all Investor Relations for Affordable Homes
of America, Inc. |
