NEW YORK, NY, United States, via ETELIGIS INC., 01/14/2015 – – Viking Investments Group, Inc. (“Viking”) (OTCQB: VKIN), is pleased to announce it has executed a Letter of Intent (“LOI”) with Cytron Capital Group Inc. (“Cytron”), a Vancouver-based company, wherein the parties have outlined the essential elements of a joint venture concerning the acquisition, development and/or management of various projects in the Real Estate and Energy sectors.
Given the similarities in the business plan and growth strategy of each company, executives of Cytron and Viking agreed it would be ideal to combine their resources and expertise and adopt a collaborative approach toward completing qualified transactions. According to James Doris, Viking’s President and C.E.O., “This arrangement has the potential to significantly accelerate the attainment of Viking’s goal of increasing shareholder value through a responsible, diversified acquisition plan.”
Cytron’s principals have performed extensive due diligence over the past twelve months assessing opportunities in the aforementioned sectors, and Cytron, directly or through an affiliate, has entered into non-binding arrangements with respect to six transactions (collectively, the “Contemplated Transactions”), four in the real estate sector and two in the energy sector, which Cytron believes are worth pursuing immediately given the value-proposition associated with each deal.
The LOI contemplates Cytron and Viking forming a special purpose vehicle (“SPV”), with each party owning 50% thereof, and the SPV, directly or indirectly, completing the subject transactions. The intent is for Viking to obtain the capital required to complete each acquisition, anticipated to occur via a bond offering, and then loan the monies to the SPV on a secured basis.
The aggregate value of the Contemplated Transactions is approximately USD$500M. In exchange for transferring the opportunities to the SPV, Cytron will receive common shares of Viking subject to the transactions closing and Cytron achieving certain milestones to be agreed upon by the parties.
The LOI is non-binding and any formal transaction between Viking and Cytron is subject to the parties executing a definitive agreement.
Cytron Capital Group Inc. is a North American based investment capital group that provides capital and corporate finance services, primarily focused on real estate, property development, natural resources, including agriculture, and the energy sector.
Viking aims to acquire, invest in and/or provide professional advisory and consulting services to companies undergoing or anticipating periods of rapid growth, significant change or ownership transition. Viking’s primary focus is directed toward evaluating and completing investments in North America, mainly in the Oil & Gas and Real Estate sectors, with appropriate diversification and balance between each division. Viking targets under-valued investments with realistic appreciation potential and a defined exit strategy.
Viking is not an investment company, as defined by the Investment Company Act of 1940.
Safe Harbor Statement
This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), including all statements that are not statements of historical fact regarding the intent, belief or current expectations of the company, its directors or its officers with respect to, among other things: (i) the company’s financing plans; (ii) trends affecting the company’s financial condition or results of operations; (iii) the company’s growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the company’s ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors including the risk disclosed in the company’s Forms 10-K and 10-Q filed with the SEC.
For additional information please contact:
James A. Doris
President and C.E.O.
Viking Investments Group, Inc.
1330 Avenue of the Americas, Suite 23A
New York, NY 10019
SOURCE: Viking Investments Group, Inc.