|Subject:||[Gene-bugs] Viva Executes Interim Operating Agreement and Relocates Miami Office|
|Date:||Wed, 12 Oct 2005 11:27:19 -0800|
We issued a Trading Alert on Viva International (OTCBB: VIVI) last November when the stock was trading at just $.04 a share and watched as it skyrocketed to $.76, a gain of almost 2000% in a matter of weeks. Well it looks like the stock might be moving to new highs again as they announced the acquisition of Regions Air (www.regionsair.com).
Established in 1996, RegionsAir, is a regional air carrier that provides commuter air service to small-and-medium sized communities in the Southeast and Midwest. RegionsAir operates their fleet of commuter aircraft as "American Connection" in a number of markets under an operational agreement with American Airlines (NSYE: AMR). Yes that American Airlines.
For the fiscal year ended December 31, 2004, RegionsAir posted operating revenue of approximately $24 million . So with this acquisition VIVI now has revenues of over $24 million but the share price has not caught up with actual value. VIVI has been trading the past 6 months between $.11 and $.16 with almost no revenues giving it a market cap range of a paltry $4.95 million to $7.2 million. So if VIVI was worth that with no revenues what is it worth now over $24 million in revenues? Let's take a look at some other low cost air carriers.
So if we valued VIVI with the same metrics as these other airlines then VIVI's market cap (share price X shares outstanding) should be somewhere in the range of $33 million - $41.5 million. Which would give us a share price in the range of $62-$.92 and that is a gain of 300% to 450% above Friday's close. This announcement came so quickly it has caught the public off guard giving us a great opportunity. This looks to be one time where the little guy (you and us) can have the opportunity to get in on the ground floor.
Look at the chart below and tell me which company has the best chance of making a huge move to the upside?
Viva Executes Interim Operating Agreement
and Relocates Miami Office
Miami, Florida, October 12, 2005 Viva International, Inc. (VIVI.OB) announced today it has executed an Interim Operating Agreement with RegionsAir and will immediately begin the relocation process of its Miami office to Smyrna, Tennessee (www.regionsair.com).
"The execution of an interim operating agreement was the next logical step to expedite the completion of the acquisition, commented Fred Breeden, Executive Vice President and Chief Financial Officer of RegionsAir. We are willing to provide whatever managerial and operational support may be required to Viva International and its subsidiaries and are genuinely excited at being able to not only grow RegionsAir but to be a part of Viva's growth plan in the Caribbean marketplace."
Robert J. Scott, Chairman of Viva International, Inc., commented "The Interim Operating Agreement outlines the operational protocol between Viva and RegionsAir during the LOI period. Further, the agreement incorporates the expectation and performance of each of our respective operations and the related functions of accounting, contracts, agreements, purchasing leveraging, inventory management and/or transactional obligations. We are approaching this operating agreement to begin making decisions that will use Viva & Regions combined talents and abilities to bring value to both companies as soon as possible. Obviously, we do not foresee any difficulty in finalizing any required Viva/Regions documents to complete the acquisition of Regions and as such decided that the sooner we are able to start working together the better".
RegionsAir is a regional air carrier established in 1996 that provides commuter air service to small-and-medium sized communities in the Southeast and Midwest. RegionsAir operates turboprop commuters as "American Connection" in a number of markets under an operational agreement with American Airlines (NSYE:AMR).
From its hub in St. Louis, RegionsAir provides air service to eleven (11) cities in Missouri, Iowa, Illinois, Indiana, Kentucky and Tennessee. Eight (8) of those cities are served under contract with the US Department of Transportation as part of the Essential Air Service Program, which provides for subsidies on a per departure basis.
RegionsAir posted operating revenues of approximately $24 million for each year for fiscal years ended December 31, 2003 and 2004. More detailed financial data can be obtained from a review of Regions DOT filings that are available to the public.
"Viva business consultant, Pier S. Bjorklund stated, "The decision to relocate our Miami office to Smyrna, Tennessee will assist us in expediting the facilitation of the acquisition as well as concentrating our resources in a manner to centralize the majority of Viva's accounting and legal functions alongside Regions. This no doubt will provide more efficient use of cash flows as we transition Viva and Regions into the development of a combined operational headquarters. Viva plans to continue utilizing office space in Michigan."
About Viva International
Viva International, Inc. ("VIVA") is a publicly traded aviation holding company (VIVI.OB) in the business of developing and/or acquiring aviation related entities with beneficial air service certificates and economic rights, collectively referred to as "VIVA." The Company's strategy is to capitalize on centralized operational infrastructure and combined resource allocation of our internal holdings to service routes in "niche" markets domestically and internationally. Viva's group of companies provides high quality products and services to the air travel industry with a heavy emphasis on the Caribbean market. RegionsAir, Inc., under a recently executed Irrevocable Letter of Intent Acquisition Agreement, is VIVA's primary operator located domestically in Smyrna (Nashville), Tennessee. In addition, the Company has operations in the Caribbean located in San Juan, Puerto Rico and Santo Domingo, Dominican Republic under Eastern Caribbean Air ("ECAIR") and Viva Air Dominicana, S.A. ("Viva Air"), respectively. The Company's corporate headquarter is located in Traverse City, Michigan.
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. Further information on potential
factors that could affect Viva International, Inc. is found in the
Company's Form 10-K and other documents filed with the U. S.
Securities and Exchange Commission.
Viva International, Inc. @ (231) 932-7490 or Pier S. Bjorklund @ (888) 336-8482
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