DALLAS, July 22, 2013 /PRNewswire/ -- Mr. Jeff Love, Chairman of LIG Assets, Inc. (OTCPK: LIGA) and its subsidiary companies, announces the following statements to further clarify its business plan, provide a summary of current projects, and discuss its focus for the balance of 2013.
- LIG Assets, Inc. maintains its inventory of about 235 residential real estate properties located in Texas. The Company is in good standing with its lenders, and the properties continue to generate positive cash flow. FP Management Group, LLC, property manager and largest lender to LIG Assets, Inc. provided a letter dated July 15, 2013 "to further affirm the information regarding the properties and the debt thereon" referencing the Attorney Letter with Respect to Current Information for LIG Assets dated June 6, 2013. A copy of this letter will be provided upon request. LIGA's net real estate holdings are conservatively valued at over $7.5 million.
- LIG Assets has identified at least two people that the Company plans to add to its Board of Directors. The Company plans to issue a formal announcement soon when each person officially accepts a position. LIG Assets continues to prepare its financials so it can be audited.
- Late last year, a Strategic Alliance was formed with Texas Real Estate Hedge Fund, LP, MMR Realty Advisors, and InterContinental Real Estate Partners to focus on commercial properties including multifamily, retail, hotel, and office. The Strategic Alliance as well as relationships with other hedge funds and investors provides LIG Assets access to capital so it can be involved in the commercial real estate market with property valuations between $1 million and $100 million. Although these projects take longer to develop, LIG Assets expects several large transactions to be consummated by year end. A summary of current real estate projects is included in this press release.
- The goal for the majority of the commercial real estate projects is to purchase them for a quick turnaround through sale or leaseback. LIG Assets has identified several new sources that are interested in buying its properties. LIG Assets plans to update its list of current projects quarterly to show which projects were completed, which projects are still being worked on, and which projects are no longer possibilities.
- On June 18, 2013, it was announced that LIG Assets sold its contract rights for its role in the hotel casino transaction in Cripple Creek, CO. The sale of these rights was made to a privately owned REIT. Proceeds from the sale of these rights have not been received yet, but are expected soon.
- The office in Austin is led by new management, and our belief is that a major breakthrough is imminent that should enable this office to produce on its deal flow. A list of possible transactions associated with this office is also included below.
- LIG Assets also owns a wholly owned subsidiary called LIG Entertainment Management, Inc. and has funded two movies. "HOA Havoc – The Movie" has been completed, and management is currently negotiating for the sale of the movie. Several offers are currently under review, and a sale is expected within 30 days. Its other movie, "The Water's Edge" is in the process of completion. Since this business is not the Company's focus, management plans to use part of the proceeds from sales to execute a share buyback plan. Management believes the current share price of LIGA stock does not nearly reflect its net assets value or potential earnings.
- LIG Assets also owns the majority of South American Properties, Inc. (OTCPK: SAMP) that focuses on real estate transactions outside the United States. LIG Assets plans to eventually issue a stock dividend of common shares of SAMP to LIGA shareholders. South American Properties has two projects that are moving forward. First, Colan Marina is intended to be a full service luxury marina near the Port of Paita in northern Peru. Development of the marina includes 150 slips, dry dock facilities, maintenance and fuel services, as well as 24-hour security. It will be man-made and created by the excavation of a salt flat bordering the Emerald Bay Beach on the west and 100-foot cliffs on the east. Second, a casino in the Dominican Republic may be acquired within 30 days.
Summary of Current Projects – Dallas Office
The following is a list of projects that LIG Assets intends to complete this year. For competitive reasons, only general details can be provided. If an investor or interested party wishes to inquire about more specific information, they are invited to contact the Company directly.