River Hawk Aviation Issues Letter of Intent to Acquire Caribbean Fixed Base Operation
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TRAVERSE CITY, MI, Jan 15 (MARKET WIRE) --
River Hawk Aviation, Inc. (PINKSHEETS: RHWI) ("River Hawk" or the
"Company") announced that it has issued a letter of intent to acquire Riverhawk
West Indies ("RHW") doing business as Caribbean Flight Center ("Caribbean
Flight Center or Caribbean") from its location at St. Croix, US Virgin
Islands. The acquisition transaction provides for a $500,000 down payment and
$2
million of Company Preferred Series B stock to be exchanged for all of the
equity
and voting interest in RHW.
The Company Preferred Series B shares to be exchanged will contain an annual
cumulative coupon rate of 8% and call features that enable the holders to
either convert their shares to common shares or to elect to tender them to
Aerologistics Investment Partners, LLC (a related party) for $1 per share.
In 2007, Caribbean Flight Center is estimated to have generated in excess of
$6
million in revenues. Caribbean's revenues were primarily generated from
aviation
fuel sales.
Calvin Humphrey, River Hawk's CEO, commented, "We believe that Caribbean
Flight
Center is an attractive acquisition candidate and has the right mix of
existing profitability and upside potential that we seek in our acquisitions.
We plan to push for a quick closing of this transaction and soon thereafter
begin construction or renovation of the office and lobby area of the fixed base
operation. We also intend to deploy aviation equipment and aircraft management
services in St. Croix as well as develop an aviation maintenance facility and
increase the utilization of existing hangar space. In our opinion, the
opportunities for growth in the service sector of Caribbean Flight Center are
quite substantial and we look forward to completing this acquisition and adding
Caribbean to our holdings."
About River Hawk Aviation, Inc.
River Hawk Aviation, Inc., is a holding company concentrating on the
acquisition and development of aviation niche companies. Presently, the
Company's operating subsidiary base is comprised of Profile Aviation Center,
Inc.,
Profile Aviation Services, Inc. of Hickory, North Carolina and River Hawk
Aviation, Inc. (a private entity) of San Antonio, Texas.
The combined synergies associated with the Company's current holdings will
provide revenues from charter aircraft operations, aviation management services
to
private aircraft owners, certified aircraft maintenance services, fueling and
other
fixed base operation services as well as aviation parts and components sales
within the aviation industry. The Company and its subsidiaries are also able
to offer consulting services, marketing and appraisals to the aviation
community.
At present, the Company maintains offices and a fixed base operation
including aviation hangars in Hickory, North Carolina, offices and inventory
warehousing in San Antonio, Texas, and executive offices in Michigan.
The Company's plan for future growth and development will focus on the
acquisition of aviation-related operating businesses and airlines that display
the potential for restructuring into profitable and sustainable aviation-related
growth concerns.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended ("the Exchange Act"), and
as
such, may involve risks and uncertainties. Forward-looking statements which are
based
upon certain assumptions and describe future plans, strategies and expectations,
are generally identifiable by the use of words as "believe," "expect,"
"intend," "anticipate," "project," or other similar expressions. These
forward-looking statements relate to, among other things, future performance,
and perceived opportunities in the market and statements regarding the
Company's mission and vision. The Company's actual results, performance and
achievements may differ materially from the results, performance, and
achievements expressed or implied in such forward-looking statements.
Additional factors that could materially affect these forward-looking
statements and/or predictions include, among other things: (1) managing
acquisitions
and expansion of operations; (2) obtaining necessary financing and managing
existing debt; (3) completing the investigation, acquisition and integration of
newbusiness opportunities; (4 complying with federal, state and local government
and international regulations; and (5) other factors over which we have little
or no control. Further information on potential factors that could affect River
Hawk Aviation, Inc. is found in the Company's Form 10-K and other documents
filed with the U. S. Securities and Exchange Commission.
Contact Information:
For River Hawk Aviation, Inc.
Media & Investor Relations:
Joseph J. Malone
786-375-0556
Information@EquityDigest.com
www.EquityDigest.com
Robert J. Scott
(231) 946-4343
Copyright 2008, Market Wire, All rights reserved.
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