Press Release Source: Universal Property Development and Acquisition Corporation
UPDA Updates its Shareholders on Recent Acquisitions and Sale of Assets Wednesday March 21, 6:29 am ET
SAN ANTONIO--(BUSINESS WIRE)--Last week, Universal Property Development and Acquisition Corporation (OTCBB:UPDA - News; FWB:UP1)(BCN:UP1)(GER:UP1)(MUN:UP1)(STU:UP1) announced the pending sale of two of its wholly owned subsidiaries (US Petroleum Depot and UPDA Texas Trading) to Continental Fuels, Inc. The result of this transaction will be the acquisition by UPDA of Preferred Convertible Stock representing approximately 70% of the voting interest in Continental and two seats on Continental's Board of Directors.
ADVERTISEMENT Significant effort went into the planning and the development of this transaction. Over the past year, UPDA acquired the 48,000 barrel petroleum storage facility in Brownsville, Texas and invested considerable resources and time to bring it into to compliance with the regulations of all local and federal authorities including the US Coast Guard, US Department of Homeland Security, the Port Authority of Brownsville and others. UPDA also invested tremendous resources to build the business of UPDA Texas Trading, starting with the fuel blending formulas that were developed, to the negotiation of importation agreements for the condensate (light crude) on which deliveries started in February and, finally, making arrangements with Western Refining to purchase the condensate in whatever quantities can be delivered.
After consulting with its advisors and counsel, the board and the senior management of UPDA decided that it is in the best interests of the shareholders of UPDA to enter this asset sale transaction with another public company for the following reasons: First, management believes that the market value of these UPDA assets were not fully reflected in the value of UPDA, its market capitalization nor its present stock price. Second, management believes that separating the trading, blending and the storage business into its own company, with its own experienced management team that can focus on the development of the significant resources incubated by UPDA, will provide the business with its best opportunity to thrive. Third, as a public company, Continental may have independent financing resources and opportunities to utilize in order to support the future growth of the trading and blending businesses. And finally, upon completion of this transaction, UPDA will have raised additional capital to help finance its core oil and gas acquisition and development activities.
About UPDA
Universal Property Development and Acquisition Corporation (OTC BB: UPDA - News) focuses on the acquisition and development of proven oil and natural gas reserves and other energy opportunities through the creation of joint ventures with under-funded owners of mineral leases and cutting-edge technologies.
Statements contained in this press release that are not based upon current or historical fact are forward-looking in nature. Such forward-looking statements reflect the current views of management with respect to future events and are subject to certain risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected, or described pursuant to similar expressions.
Contact:
Universal Property Development and Acquisition Corporation Jack Baker (Investor Relations), 561-630-2977 info@updac.com
Source: Universal Property Development and Acquisition Corporation |