GLOBAL INVESTMENT UPDATE: Viva International Plans to Merge Caribbean
Subsidiaries With U.S.-Based Transportation Company
Vancouver, February 13, 2007 - Global Developments, Inc.
(PINKSHEETS: GDVM), a publicly traded venture capital company, is
pleased to provide the following update with respect to Viva
International Inc., an airline development and aviation supply
company, in which Global holds an equity stake.
TRAVERSE CITY, MI--(MARKET WIRE)--Feb 12, 2007 -- Viva International,
Inc. (Viva) (OTC BB:VIVI.OB - News) announced this morning that it
has issued a letter of intent to Transportation Associates, Inc. (TA)
that proposes merging Eastern Caribbean Airlines Corporation (ECA)
and Viva's 49% in Viva Air Dominicana S.A. (VAD) with TA. The
contemplated merger would then been subsequently spun-out to the
shareholders of Viva.
Transportation Associates, Inc. is a holding company specializing in
the acquisition and management of trucking companies. Transportation
Associates, Inc. has previously estimated the annual revenues of its
subsidiaries to be in a range of $15-20 million.
Under the plan, ECA will issue 1 million shares of Series A
Convertible Preferred Stock to TA in exchange for all of the Capital
Stock owned by its shareholders. The preferred stock will be
convertible after 12 months at the rate of 1 share of Series A for
twenty shares of common stock of ECA.
As additional consideration under the merger and subsequent spin-off,
$1.5 million of liabilities (Viva and subsidiaries) will be absorbed
or assigned to the new merger (ECA and subsidiaries).
Upon the effective date of the spin-off, Viva will issue, as a
dividend to its shareholders, 100% of the common stock of ECA issued
and outstanding at the time of the spin-off, on a pro rata basis. The
exact number of shares will be determined at the mutual agreement of
the parties prior to the spin-off, but the parties contemplate that a
total of approximately 5 million shares of ECA will be issued in the
spin-off. Accordingly, qualifying shareholders of Viva will receive
approximately 1 share of ECA for each 15 shares of Viva that they own
at the effective date.
Calvin Humphrey, Viva's CEO and Chairman, released the following
statement: "The need for Viva to plan for the merge of our Caribbean
subsidiaries and their subsequent spin-offs is necessary for several
reasons. Primarily, it is necessary to be able to properly finance
the respective operations of the aviation-related businesses and
acquisitions that we have planned for Viva while recognizing that it
would be easier for our Caribbean-based subsidiaries to be financed
as part of a respective merger with an entity such as Transportation
Associates. Secondly, as we go forward it is becoming apparent that
with the focus of our efforts being toward aviation-related
businesses like River Hawk Aviation and Flight Test Associates that
our management team does not have sufficient time available to devote
to the Caribbean airline subsidiaries. Accordingly, the time to
address what is best for both organizations, as well as our
shareholders, is now and I believe that our plan provides the
opportunity to accomplish this."
About Viva International
Recently Viva International, Inc. (Viva) agreed to purchase of the
assets of River Hawk Aviation, Inc. (River Hawk). Prior to this, Viva
was primarily dedicated to the formation and development of airlines
along with the acquisition of aviation-related operating businesses
and airlines that displayed potential for restructuring into
profitable and sustainable aviation-related growth concerns. The
Company's primary involvement was with two developmental-stage
carriers in regional markets from hubs in Puerto Rico and Santo
Domingo, Dominican Republic. Our hub in Puerto Rico was maintained
through our subsidiary Eastern Caribbean Airlines Corporation and our
hub in the Dominican Republic was maintained by Viva Air Dominicana,
S.A. Each of these companies remains as subsidiaries of the Company
and are being evaluated to determine the best course of action to
return them to active operations.
The Company has now expanded its focus to also participate as an
aviation parts and components supplier in the broader aviation
industry, currently specializing in Saab and other commuter aircraft
parts and components as well as providing consulting services,
marketing and appraisals to the aviation community. At present, the
Company maintains executive offices in Michigan.
Please visit http://www.flyviva.com for more information.
About Global Developments
Global Developments, Inc. is a publicly traded venture capital
company. It was formed to create a unique investment vehicle
representing a growing portfolio of innovative and emerging
growth-oriented companies. Global acquires its portfolio companies
either as wholly or partially owned subsidiaries, or as an investment
where Global is the lead investor. As a result, Global maintains
substantial management and operational control, thereby giving it the
ability to provide significant oversight and guidance in building
value and creating liquidity events for its shareholders. Global
invests in companies with solid management, operational excellence,
and the potential to grow substantial revenue streams.
Please visit http://www.globaldevelopmentsinc.com for more
information.
Forward-Looking Statements
You should not place undue reliance on forward-looking statements in
this press release. This press release contains forward-looking
statements that involve risks and uncertainties. Words such as
``will,'' ``anticipates,'' ``believes,'' ``plans,'' ``goal,''
``expects,'' ``future,'' ``intends,'' and similar expressions are
used to identify these forward-looking statements. Actual results
could differ materially from those anticipated in these
forward-looking statements for many reasons, including the risks we
face as described in this press release. For further information
about Global Developments, Inc. please refer to its Web site at
http://www.globaldevelopmentsinc.com.
Contact:
Global Developments, Inc.
Leighton Dean
(604) 685-7552
ldean@globaldevelopmentsinc.com
Source: GLOBAL DEVELOPMENTS, INC.
