SHIJIAZHUANG, China-- Prime Acquisition Corp. (“Prime” or the “Company”) (OTCQB: Common Stock: “PACQF”, Units: “PAQUF”, Warrants: “PAQWF”) today announced that it has sold a subsidiary whose sole asset is four floors of Corsa Europa 22, an office building in central Milan, to its former owners Francesco Rotondi and Luca Failla. The subsidiary Seba S.r.l. has been cash flow negative since its acquisition by Prime.
Pursuant to the terms of the agreement, Prime will return the equity interests in Seba S.r.l. to Messrs. Rotondi and Failla, its former owners (and current tenants), in exchange for the following:
- Return and cancellation of 497,308 Prime shares; and
- Cancellation of the Transaction Value Agreement (“TVA”) dated September 30, 2013.
In addition, Prime entered into an Option Agreement with Mr. Rotondi granting Mr. Rotondi the right to repurchase Nova S.r.l., which owns the other two floors of Corsa Europa 22, under certain conditions.
Mr. William Yu, interim chief executive officer and director of Prime, stated, “We are pleased to have reached these agreements with Messrs. Rotondi and Failla. This transaction is part of Prime’s ongoing restructuring, which we believe is crucial to moving the Company toward generating positive cash flow. Cancellation of the TVA eliminates substantial potential dilution to current shareholders and thereby bolsters shareholder value. We continue to explore opportunities in European real estate and look forward to seeking and evaluating potential accretive acquisitions in 2015.”
About Prime Acquisition Corp.
Prime Acquisition Corp. is a Cayman Islands company that owns and operates office, commercial and industrial properties in Italy. Prime is focused on building a portfolio of high yield-producing assets.
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Prime Acquisition Corp. Forward-looking statements are statements that are not historical facts. Such forward-looking statements, based upon the current beliefs and expectations of Prime’s management, are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. The following factors, among others, could cause actual results to meaningfully differ from those set forth in the forward-looking statements:
- Continued compliance with government regulations;
- Changing legislation or regulatory environments;
- Requirements or changes affecting the businesses in which Prime is engaged;
- Industry trends, including factors affecting supply and demand;
- Labor and personnel relations;
- Credit risks affecting the combined business’ revenue and profitability;
- Changes in the real estate industry;
- Changing interpretations of generally accepted accounting principles;
- General economic conditions; and
- Other relevant risks detailed in Prime’s filings with the Securities and Exchange Commission.
The information set forth herein should be read in light of such risks. Prime does not assume any obligation to update the information contained in this press release.
Prime Acquisition Corp.
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Source: Prime Acquisition Corp.