WASHINGTON -- Mega Group Inc. said it has entered into an asset purchase agreement to acquire four gas convenience store locations located in the Tidewater area of Virginia. The purchase price is $12.9 million, plus the value of the inventory, payable in cash at the closing.
The asset purchase agreement also provides for a closing 90 days from the date of the agreement. Mega Group expects to finance the purchase of the assets with both debt and equity capital raised from an exempt securities offering.
Also, Mega Group announced [image-nocss] that on June 4, 2007, it entered into an agreement with Hosanna Development LLC under which Mega Group acquired 100% of the membership interests in Hosanna for the assumption of debt of approximately $30,000. After consummation of this acquisition, Hosanna will become a wholly owned, operating subsidiary of Mega Group. Hosanna was acquired among others reasons, to manage the four gas c-store store operations.
The company's obligation to close the transaction is conditioned upon, among other things, the consummation of the company's acquisition of four stores as set forth in the asset purchase agreement.
According to Mega Group's CEO, John H. Brown, Our revised operational plan is to maximize shareholder value by offering diversified financial services to make rational investments in small U.S. companies that meet our underwriting criteria. The company is acquiring Hosanna Development for purposes of, among others, managing four gasoline convenience store operations, providing a daily cash revenue stream with substantial growth potential in the community-related retail services sector.
He added, Our investment entry into consumer product offerings and real property ownership in local communities will leverage our ability to provide consulting, business and financial services to smaller companies in the urban and rural faith-based communities we serve.
Washington, D.C.-based Mega Group is a financial services company that serves urban and rural communities and faith-based entities to create wealth.
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