Subj: OTC Digest- Special Report
Date: 98-09-18 11:11:11 EDT
From: info@otcdigest.com
To: info@otcdigest.com
otcdigest.com
From: mail@otcdigest.com
Date: Wednesday, September 16, 1998
Subject: OTC Digest Special Situation Release
OTC Digest
From the editor & staff to our subscribers:
The following is a special situation report that we are providing on one of our client companies, New Oasis (OTC BB: NUOA).
This information has been provided by New Oasis (OTC BB: NUOA) for our subscribers' benefit. Look for the OTC Digest to come out with its new format within the next two weeks.
NUOASIS RESORTS, INC. (OTC BB: NUOA)
NuOasis Resorts announced several exciting developments earlier this month. After reporting substantial revenues from its Tunisian hotel and casino operations and arranging a $7 million financing to complete its larger casino as well as the facilities surrounding its five-star hotel, NUOA came out with the best news of all - a letter of intent to merge its NuOasis International subsidiary with Flexweight Corp., a domestic gaming and hotel company that is currently trading at $6.00 (close on 9/11/98).
Considering the letter of intent calls for approximately 7 million Flexweight shares (valued at approximately $40 million) to be issued to NUOA's subsidiary, this deal is very exciting for shareholders given that NUOA President Fred Luke announced that the Company intends to distribute some or all of the stock to its shareholders.
TO JOIN FORCES WITH DOMESTIC GAMING AND HOTEL COMPANY FLEXWEIGHT
On September 4th, NUOA reported that it had executed a letter of intent to combine its wholly-owned subsidiary NuOasis International with Flexweight (OTC BB: FXWA), thus merging the NUOA subsidiary's NuOasis and Cleopatra-themed hotel and casino assets with FXWA's U.S. gaming and hotel projects.
In addition to issuing approximately 7 million shares to the NUOA subsidiary (which represents 49% of FXWA), Flexweight will also issue approximately $180 million of notes as well as warrants which, if all are exercised, would increase the NUOA subsidiary's stake in FXWA to 85%.
NUOA also reported that, since its subsidiary's assets should enable Flexweight to meet the listing requirements, FXWA intends to file for a listing of its shares on the Nasdaq National Market(r) System.
The Company said the merger is intended to create a stronger global resort and gaming management organization. It also said the new combined company should have the management and financial resources to expand the NUOA subsidiary's foothold in the growing overseas hospitality market while simultaneously capitalizing on the new opportunities which FXWA has identified that result from the recent shakeout of the domestic gaming industry.
AUGUST RESULTS FROM NUOA'S HOTEL AND CASINO OPERATIONS IN TUNISIA
NUOA also released the condensed financial results during the month of August at its Cleopatra Palace Casino in Hammamet and Le Palace Hotel in Cap Gammarth, Tunisia. The Company's 70% subsidiary, Cleopatra Hammamet Ltd., posted total monthly casino gross revenues from gaming of $573,721 with net win at the casino of $372,920. NUOA also said that slot machines at the casino won $64,280.
The Le Palace Hotel, operated by NUOA's 60% subsidiary Cleopatra's World, Inc., reported 8,209 guests and 59.36% occupancy for the month, with total gross operating revenue of $969,737. The revenue breakdown was $544,369 for rooms, $375,626 for food and beverage, and $49,740 for miscellaneous charges.
SIGNS TERM SHEET FOR $7 MILLION FINANCING
In a long awaited announcement, NUOA also reported that it has signed a term sheet for a $7 million credit facility which should enable the Company to complete its Cleopatra Palace Casino in Cap Gammarth, Tunisia within 30 to 40 days after the funds are received
.
NUOA signed the term sheet with a European commercial banking organization for an initial $7 million credit facility. The Company also said the bank has offered to syndicate additional loans for the benefit of NUOA and its subsidiaries, particularly Cleopatra Cap Gammarth Ltd. and Cleopatra's World, Inc.
The term sheet calls for a $3.5 million credit facility for Cleopatra Cap Gammarth, which will be allocated for completion of the subsidiary's casino which is adjacent to the Le Palace Hotel, and an additional $3.5 million for Cleopatra's World to complete its Gammarth resort complex. The Gammarth complex comprises the 5-star hotel with a total of 600 beds, commercial center (includes 42 boutiques for rent and up to 12 restaurants), beach club (with two restaurants), sports center, night club (has an 800 person capacity and includes a restaurant and bar), 250 apartments, and approved planning permission to build 11 villas.
NuOasis Resorts, Inc. is a leisure and entertainment holding company with operations, conducted through subsidiaries, in international gaming and hotel management, food manufacturing, and development-stage commercial real estate.
OTC Digest will continue to follow this stock and its progress closely. For the latest press releases and more detailed financial information, visit: biz.yahoo.com and otcfn.com.
DISCLAIMER
Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: Statements in this news release looking forward in time involve risks and uncertainties, including the risks associated with the effect of changing economic conditions, trends in the electronic products markets, variations in the Company's cash flow, market acceptance risks, technical development risks, seasonality and other risk factors detailed in the Company's Securities and Exchange Commission filings.
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