10/09 12:01 WestAmerica Corp. Acquires Park Inn
International Lodging Near
WACC.O>
WestAmerica Corp. Acquires Park Inn International Lodging Near Company's
Timeshare Development
ORLANDO, Fla.--(BUSINESS WIRE)--Oct. 9, 1998--
Announces 60 for 1 Reverse Stock Split
Reverse Split to be Effective as of Oct. 19, 1998
WestAmerica Corp. (OTC:WACC) announced Friday that it has acquired
NASS Inc., a Florida corporation headquartered at Lakeland, Fla. The
company's primary asset is the Park Inn International, a 119 room motel
located on Highway 27 one and one-half miles from WestAmerica's
timeshare resort development, within a 10 minute drive to Walt Disney World
and other Orlando attractions.
Max P. Cawal, president and chief operating officer of WestAmerica said: "In
addition to the revenue from operating the property, we establish an
immediate presence in the neighborhood. The motel will contribute
significantly to the company's timeshare marketing and sales programs."
WestAmerica acquired NASS Inc. through a newly formed subsidiary, Park
Inn Acquisition Corp., for a consideration of $50,000 (to be paid over four
years) and warrants to purchase 50,000 shares of WestAmerica common
stock over the next five years at prices ranging from $3.00 to $6.00 per
share. The transaction contemplates arranging mortgage refinancing for the
property within the next 120 days to retire mortgages in the amount of
$950,000. The current property appraisal is $1,200,000. Additionally, plans
include refurbishment of the premises.
An expressed condition of the NASS/Park Inn purchase agreement requires
WestAmerica Corp. to complete a reverse stock split of its common shares
on a 60 for 1 basis. The warrant shares to be issued to the seller shall be
issued post-split or after taking into effect the reverse stock split.
To comply with this provision, WestAmerica Corp. will implement a reverse
stock split of the common stock such that 60 currently issued shares of its
common stock shall be reduced to one share of common stock. The reverse
stock split will be effective as of Monday, Oct. 19, 1998.
The Park Inn International is situated on 13.5 acres on the east-side of
Highway 27 approximately 3 miles south of Highway 192 and one and
one-half miles north of WestAmerica's timeshare resort development. The
Park Inn features a large lobby area with bar and restaurant, swimming pool
and activity and game room.
"The Park Inn gives WestAmerica a great advantage in marketing the
company's timeshare resort located just down the street," explained John
Reed, vice president of marketing. "By filling the rooms with mini-vacs (one,
two or three night visitation programs offered to qualified families) we can
attract and control high quality prospects as well as provide additional
services."
WestAmerica has approval for 750 units (39,000 timeshare weeks) to be built
and sold as timeshare on 285 acres nearby with the first phase, consisting of
162 units (8,424 timeshare weeks) built on 35 acres. Based on RCI
Consulting's feasibility and marketing study, the expected sellout is in
excess of $460,000,000.
WestAmerica's timeshare resort will include single-family homes and villas,
some featuring 3 bedrooms, 3 baths, with heated pools and spas, with an
18-hole championship golf course and complete resort amenities - the first
project of its kind developed by a public company.
WestAmerica Corp., a leisure industry company, is in the principal business
of developing vacation ownership (timeshare) destination resorts.
From time to time, the company may issue forward looking statements that
involve risks and uncertainties. This statement may contain forward looking
statements within the meaning of Section 27A of the Securities Act of 1933,
as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Actual results could differ and any forward-looking statements
should be considered accordingly.
--30--pp/mi*
CONTACT: WestAmerica Corp., Orlando
Daniel M. Boyar, Chairman
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