Great American Family Parks Enters into Agreement to Sell the Assets of its Crossroads Convenience Center Subsidiary
November 03 2006 - 6:30AM
PR Newswire (US)
- First Phase of Transaction Valued at $600,000 - SANTA MONICA,
Calif., Nov. 3 /PRNewswire-FirstCall/ -- Great American Family
Parks, Inc. (OTC:GFAM) (BULLETIN BOARD: GFAM) , a company focused
on buying and managing profitable regional theme parks and themed
amusement attractions, announced today that the Company has
completed the first part of a planned two-stage transaction to sell
its Crossroads Convenience Center (CCC) business to Idaho Chevron
Center, Inc. The initial phase of the transaction closed on
Tuesday, October 31, 2006, and involved the sale of a portion of
CCC's assets for a purchase price of $600,000 pursuant to an asset
purchase agreement. The planned second phase of the transaction,
which is expected to close within the next 30 days, involves the
sale of CCC's building and real estate. The CCC assets sold
pursuant to the asset purchase agreement consist of the fuel and
retail business located adjacent to The Idaho Center, a regional
entertainment complex in the Boise, Idaho SMA (Standard
Metropolitan Area). The total purchase price of the assets consists
of $300,000 paid in cash, as well as a secured conditional
promissory note in the amount of $300,000. The promissory note has
a term of five years and bears interest at the rate of eight
percent per annum. The asset purchase agreement also includes an
option, exercisable on or before November 30, 2006, to purchase the
real property owned by Crossroads pursuant to a separate real
estate purchase agreement. A description of the transaction is set
forth in the Company's Current Report on Form 8-K filed with the
Securities and Exchange Commission on November 3, 2006, which is
available at http://www.sec.gov/ . Dr. Larry Eastland, Chief
Executive Officer of Great American Family Parks, stated, "We have
worked tirelessly to build the Crossroads Convenience Center into a
successful franchise. The value of the Crossroads Convenience
Center business has benefited from a strong real estate market and
a steady rise in fuel prices. This is the right time to sell
Crossroads Convenience Center, as we believe the sale price
reflects the intrinsic value of the enterprise. Great American
Family Parks' management believes that based on an independent
appraisal and comparable land and businesses in the area, the
second stage of the sale, which will include the CCC building and
real property, will generate a significantly greater sale price
than the asset sale announced today. We look forward to announcing
the particulars of that second transaction to our shareholders once
it is completed." Dr. Eastland continued, "The sale of Crossroads
will enable Great American Family Parks to focus on our stated
mission of buying, managing and operating a family of themed
amusement attractions. The proceeds received from the sale of
Crossroads will primarily be used for the further implementation of
our business plan, which includes a planned expansion and upgrade
to our Wild Animal Safari theme park and the adjacent land
currently owned by the park, including the development of new
venues and improvements to its current facilities. The remaining
proceeds will be used to strengthen Great American Family Parks'
balance sheet and for working capital purposes. Great American
Family Parks is also committed to pursuing additional accretive
transactions focused on the themed amusement park segment that we
believe will continue to enhance long term shareholder value."
About Great American Family Parks: Great American Family Parks is
focused on buying and managing profitable regional theme parks and
themed amusement attractions. GFAM currently owns and operates the
Wild Animal Safari theme park located in Pine Mountain, Georgia.
GFAM plans to develop a series of compatible, yet distinct
entertainment and amusement products, including themed amusement
parks, associated products, food and beverage, and multimedia
offerings. For more information on the Company, visit
http://www.weloveparks.com/ . Company Contact: Great American
Family Parks Ashley Hull (208) 342-8888 Investor Relations: Equity
Performance Group Bethany R. Tomich (617) 723-1465
http://www.equityperformancegroup.com/ Safe Harbor Statement Under
The Private Securities Litigation Reform Act of 1995: Except for
historical information contained herein, the statements in this
news release are forward-looking statements that are made pursuant
to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements involve known and
unknown risks and uncertainties, which may cause a company's actual
results, performance and achievement in the future to differ
materially from forecasted results, performance, and achievement.
These risks and uncertainties are described in the Company's
periodic filings with the Securities and Exchange Commission. The
Company undertakes no obligation to publicly release the result of
any revisions to these forward-looking statements that may be made
to reflect events or circumstances after the date hereof, or to
reflect the occurrence of unanticipated events or changes in the
Company's plans or expectations. DATASOURCE: Great American Family
Parks, Inc. CONTACT: Ashley Hull, +1-208-342-8888, or ; or Investor
Relations, Bethany R. Tomich of Equity Performance Group, +1-617-
723-1465, or , for Great American Family Parks, Inc. Web site:
http://www.weloveparks.com/
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