American International Industries, Inc., a growing investment organization that takes an active role in the companies it invests in to foster growth and profitability through its financial resources and its management expertise, today announced an agreement to acquire timber and agricultural concessions in the West African nation of Cameroon in consideration for the issuance of stock by a newly-organized entity of American International, Africa Ag Corporation (“AAC”). The parties are preparing a definitive Sales and Purchase Agreement for execution and closing, expected to occur during the 4th quarter of 2011.
“This acquisition represents American’s strategic move to utilize its executive and management resources to generate income for American, through management fees, and provide American with added value through its equity participation. American, as a diversified holding company, controls and manages four operating subsidiaries, with a management team having the expertise to provide important business development and management resources to growing companies. Further, the participation in the timber and agricultural sector is consistent with the Company’s focus on hard assets as a hedge against inflation and devaluation of currencies,” stated Daniel Dror, Chief Executive Officer, American in the press statement.
This is a no cash deal for American and there will also not be any American International shares issued in connection with the acquisition. American International will provide AAC with executive and administrative services in exchange for a cash management fee from AAC, initially fixed at $250,000 and American International will be reimbursed for direct expenses it incurs on behalf of AAC. The use of American International’s management expertise will allow AAC’s team to focus its efforts on operating the concessions. A third party is currently evaluating the valuations of the agricultural and timber concession.
“The AAC holdings consist of more than 250,000 acres of agricultural land in the Yaounde area of Cameroon and, pursuant to the Sale and Purchase Agreement, may be operated by AAC for the sale and export of multiple products and crops, including timber and biofuels, for a period of 99 years. I am pleased to announce that AAC also has executed a contract to acquire an additional concession of 300,000 acres of sustainable Cameroon Federal timber. Together with a fully-functional sawmill, which will further enhance the operations and the value of American’s interest,” said Scott Gaille, President of American in a press release Monday. Mr. Gaille has travelled to 22 African nations developing multiple relationships and business interests in Africa over the years.
For more information on American International Industries, Inc please visit www.americanii.com
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