Vancouver, BC, Canada, May 27, 2015 (GLOBE NEWSWIRE) -- MPH Ventures Corp. (TSX-V: MPS) (OTCBB: MPSFF) (Frankfurt: IJA2) (the "Company") is pleased to announce that it has entered into a Letter of Intent ("LOI") which outlines the general terms and conditions of a proposed transaction with certain shareholders of Travelucion S.L (the "Selling Shareholders") pursuant to which the Company shall acquire a 20% minority interest in Travelucion S.L in exchange for common shares of MPH Ventures with an option to acquire the remaining 80% interest.
Travelucion is a cash-flow positive travel media company that specializes in travel marketing, electronic reservation and online booking solutions for international visitors to Cuba. It owns one of the most significant portfolios of Cuba focused web properties and domains that have been promoting Cuba and offering online travel services to the Caribbean nation since 1995. Recently, Travelucion's revenues have been increasing in the wake of the notable shift in American policy towards Cuba as diplomatic relations between the two nations begin to normalize and US travel restrictions expected to gradually relax.
Travelucion owns 100% of over 450 web assets popularizing Cuban Culture, Music, Celebrities, +60 major destinations, Golf, Banking and Commerce which collectively generate approximately 20 million page-views per year. Through legacy agreements with Cuba's largest travel companies, Travelucion's emblematic e-commerce brands like Havanatur.com, Cuba VIP and GoCuba provide the company with access to a broader and more diverse portfolio of national travel and tourism packages in Cuba than any other travel provider. Travelucion is also uniquely established to handle the travel requirements of qualified US travelers to Cuba. This allows permitted US travelers, in addition to non-US travelers, the ability to indulge in high end hotel and spa accommodations or create uniquely Cuban travel packages with exclusive private home rentals, exotic/antique car services and access to a multitude of exhilarating guided or self-discovery tours across Cuba. Travelucion has also developed a strong social media platform consisting of over 60,000 passionate Cuba social media followers across Facebook, Twitter, Pinterest and Instagram.
MPH Ventures and Travelucion will continue to expand the existing travel and Cuba focused marketing initiatives in numerous sectors with a specific spotlight on the emerging US-Cuba travel market, whilst launching the development of mobile and web-based interfaces that will allow the company to offer near real-time reservations based on existing technology available for Cuban hospitality, leisure and travel services. This solution will permit all visitors to preview and book private homes directly from their phones, order classic car tours on demand, reserve private restaurants, tours and adventures in real time, yet with a uniquely Cuban style. The company is also preparing it's over 450 multi-language Cuba web properties for Global Distribution System (GDS) integration in preparation for GDS real-time bookings through Amadeus, Abacus and, when authorized, American GDS companies Travelport and Sabre.
With the most significant shift in American policy towards Cuba in over fifty years, MPH Ventures is continuing to evaluate potential investment opportunities regarding Cuba.
The LOI was negotiated at arm's length and is non-binding. Both MPH Ventures and Travelucion agree that preparation and execution of a definitive agreement (the "Definitive Agreement") is required, such Definitive Agreement to contain the terms and conditions substantially set forth in the LOI. In addition, the Definitive Agreement may include additional terms as each of the parties might agree after good faith negotiations. There can be no assurance that a Definitive Agreement will be completed as proposed or at all.
MPH Ventures shall acquire from the Selling Shareholders a 20% equity interest in Travelucion for the issuance of 4,000,000 MPH Venture shares at a deemed price of $0.05 per share. On closing, MPH Ventures will become the registered holder of 20% of the issued and outstanding shares of Travelucion. Closing of the acquisition of the initial 20% interest in Travelucion is anticipated to occur within 10 business days of the execution of the Definitive Agreement and the acceptance for filing of the Definitive Agreement by the TSX Venture Exchange.
MPH Ventures shall have a further option, for a period of one year, provided that the Company has acquired the initial 20% interest in Travelucion, to acquire the remaining 80% (for a total of 100% interest) from the Selling Shareholders. The Company will be required to issue a further 16,000,000 MPH Venture shares at a deemed price equal to the previous 10-day volume weighted average price per share up to and including the date notice is given by MPH Ventures to the Selling Shareholders to acquire the remaining 80% of the issued and outstanding shares of Travelucion.
About MPH Ventures Corp.:
MPH VENTURES CORP.
James G. Pettit
For further information contact myself or:
MPH Ventures Corp.
Toll Free: 800-567-8181
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.
This release includes certain statements that may be deemed to be "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedar.com for further information.
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Source:MPH Ventures Corp.