AMERICAN INTERNATIONAL INDUSTRIES, INC.
OTCBB and OTCQB: "AMIN"
601 CIEN STREET, SUITE 235, KEMAH, TX 77565-3077
Tel: (281) 334-9479 Fax: (281) 334-9508www.americanii.com email: email@example.com
American International Industries, Inc. Announces
AGREEMENT TO ACQUIRE AFRICAN TIMBER AND AGRICULTURAL CONCESSIONS
Houston & Kemah, Texas Ė August 29, 2010 American International Industries, Inc. (OTCBB and OTCQB:AMIN) ("American" or the "Company") today announced that it has entered into a binding Heads of Agreement to acquire interests in timber and agricultural concessions in the West African nation of Cameroon in consideration for the issuance of stock by a newly-organized entity of American, Africa Ag Corporation ("AAC"). The parties are preparing a definitive Sales and Purchase Agreement for execution and closing, expected to occur during the 4th quarter of 2011.
Upon the closing of this acquisition, American and its shareholders will retain an equity interest of approximately 5% of AAC, and the current owners of the timber concessions will own the balance of the equity interest. There shall be no cash consideration paid by American or AAC, nor will any American shares be issued in connection with the acquisition. American will provide AAC with executive and administrative services in exchange for a cash management fee from AAC, initially fixed at $250,000 for an initial phase of AAC, and American will be reimbursed for direct expenses it incurs on behalf of AAC. After conclusion of the initial phase in 2012, additional management fees will be subject to negotiation between AAC and American.
Mr. Daniel Dror, Chief Executive Officer of American, stated that "this is the first African transaction originated by Americanís President, Mr. Scott Gaille, who introduced the African concessionsí controlling interest owners to American. Mr. Gaille has travelled to 22 African nations, including trips on behalf of Occidental Petroleum Corporation, and for other ventures, developing multiple relationships and business interests in Africa over many years."
Mr. Gaille stated that "the AAC holdings consist of more than 250,000 acres of agricultural land in the Yaounde area of Cameroon and, pursuant to the Sale and Purchase Agreement, may be operated by AAC for the sale and export of multiple products and crops, including timber and biofuels, for a period of 99 years. I am pleased to announce that AAC also has executed a contract to acquire an additional concession of 300,000 acres of sustainable Cameroon Federal timber. Together with a fully-functional sawmill, which will further enhance the operations and the value of Americanís interest."
Mr. Gaille further stated that "the valuations of the agricultural and timber concessions are currently underway by independent third parties. Americanís ability to provide executive and management resources to AAC will enable AACís management team to focus on devoting its efforts on the operation of the concessions, while reducing the time and expense incurred by AAC for administrative functions."
Mr. Dror added that "this acquisition represents Americanís strategic move to utilize its executive and management resources to generate income for American, through management fees, and provide American with added value through its equity participation. American, as a diversified holding company, controls and manages four operating subsidiaries, with a management team having the expertise to provide important business development and management resources to growing companies. Further, the participation in the timber and agricultural sector is consistent with the Companyís focus on hard assets as a hedge against inflation and devaluation of currencies."
American International Industries, Inc. is a diversified holding company, with a business model similar to General Electric, Tyco International, and Berkshire Hathaway. The Company has holdings in Industry, Finance and Oil & Gas, and has a significant Real Estate portfolio, all in Houston, TX and its surrounding areas. The vision of the Company is to further develop holdings in its core industries and plans to expand its interests in the energy sector through acquisition of existing companies, applying the financial resources and management expertise to foster the growth and profitability of the acquired businesses. The holding company serves as a financial and professional partner to the management of the subsidiaries. The role of the holding company is to improve each subsidiaryís access to capital, achieve economies of scale by consolidating administrative functions, and utilize the financial and management expertise of corporate personnel across all units. The Company is continuing to work with management of the subsidiary companies to improve revenues, operations and profitability.
This press release may contain forward-looking statements, including information about managementís view of the Companyís future expectations, plans and prospects, within the safe harbor provisions under The Private Securities Litigation Reform Act of 1995 (the "Act"). In particular, when used in the preceding discussion, the words "believes," "expects," "intends," "plans," "anticipates," or "may," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act, and are subject to the safe harbor created by the Act. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. Factors that could cause actual results to differ materially from those that we may anticipate in each of our segments reflected by our subsidiaries' operations include, among others:, continued value of our real estate portfolio; the strength of the real estate market in Houston, Texas as a whole; the ability to expand its interests in the energy sector; increased levels of competition; the dependence upon financing, the rules of regulatory authorities and risks associated with any potential acquisitions. These statements involve known and unknown risks, uncertainties and other factors, which may cause the results of the Company, its divisions and concepts to be materially different than those expressed or implied in such statements. These risk factors and others are included from time to time in documents the Company files with the Securities and Exchange Commission, including but not limited to, its Form 10-Ks, Form 10-Qs and Form 8-Ks. Other unknown or unpredictable factors also could have material adverse effects on the Companyís future results. The forward-looking statements included in this press release are made only as of the date hereof. The Company cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, the Company undertakes no obligation to update these statements after the date of this release, except as required by law, and also takes no obligation to update or correct information prepared by third parties that are not paid for by the Company.
Investor Relations: Rebekah Ruthstrom at Tel: 281-334-9479 or email:firstname.lastname@example.org