The Board of Directors of Strategic Internet Investments has informed its shareholders that the company has entered into a Letter Agreement with Canada based, Star Leisure & Entertainment to purchase 80 percent of the outstanding share capital of Bahrain incorporated Gulf Star World Development.
Gulf Star holds 100 percent of the rights to develop the planned Dream Island Leisure and Entertainment Resort Facility located at Manama, Bahrain. The Dream Island Resort will be an integrated real estate and tourism development project on an island off the north-eastern coast of Manama, Bahrain, occupying approximately 165,000 square meters on a man made island about 250 meters offshore from the Al Fatah Corniche Park.
The Letter Agreement gives Strategic the right to purchase 80 percent of the outstanding shares of Gulf Star by issuing to Star Leisure, in escrow, a total of five million common shares of the Company to be earned out of escrow based on progressive stages of development of the Dream Island Project over a three-year period.
The company has agreed to formulate a comprehensive funding plan on a best efforts basis to secure the necessary debt and/or equity financing for completion of the Dream Island Project. The Company has further agreed to pay to Star Leisure the sum of $100,000 within three months of the date of the Letter Agreement to reimburse Star Leisure for a portion of its preliminary start-up and development costs for the Dream Island Project including engineering, design, administrative and professional work.
Expenditures in excess of $100,000 associated with the start-up and development of the Dream Island Project will be reimbursed to both Star Leisure and Jzala Investment Group, a Saudi Corporation holding a 20 percent interest in Gulf Star, only at such time as the project financing has been fully secured and commencement of the main construction of the Dream Island Project has been funded. These expenditures will be subject to verification in an independent audit to be completed by an internationally recognized firm of Chartered Accountants acceptable to all the parties. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
