Energy Edge Technologies Corp (OTC:EEDG) announced on Aug. 6 the signing of an agreement to acquire 51% of International Properties, Inc., the owner and developer of active adult community Saddlebrook River Estates, located in Tennesee.
The acquisition is for stock only and will be completed utilizing shares of EEDG insiders. It will be non-dilutive to all other EEDG shareholders. The transaction agreement is subject to a 45 day due diligence period and the completion of a PCAOB audit for IPI.
Saddlebrook River Estates is a recently developed 55+ community with factory-built homes on oversized home sites. The community features Energy Star windows, appliances and fixtures in every home, giving residents the benefits of a home that uses less energy and natural resources at a lower purchase price.
Tennessee’s temperate climate and low cost of living—including low real estate taxes and homeowner insurance premiums and no state income tax—makes it one of the nation’s fastest-growing retirement destinations, according to USA Today and Rand McNally.
The Saddlebrook community has 133 home sites, of which 33 have been presold with deposits to date. It’s estimated that the sale of all 133 homes will yield revenues in excess of $17 million with a gross profit of more than $5 million.
“It’s the perfect product at the perfect price at the perfect time,” said Rocco Toscano, President of IPI and a 10 year developer of communities in Tennessee. “Given today’s economic realities and the fact that about 10,000 baby boomers a day will be turning 65 over the next 20 years, the rewards in becoming a leader in the development of affordable housing for retirees are almost limitless.”
IPI is “powerfully positioned” to fill up Saddlebrook this year and move on to “the much larger projects” it has in planning stages in Tennessee and Florida, says Toscano, especially because the company has NFL icon Joe Namath leading its marketing team.
“We are extremely proud to be able to make an acquisition of this magnitude without having to raise our authorized ceiling of 100 million shares,” said Dr. Benjamin Chavis, EEDG’s Advisory Board Chairman and Spokesperson. “Although we realize that our capital needs will accelerate as a result of our recent acquisitions, which will likely require us to increase our authorized limit in the near future to meet those needs, this deal perfectly illustrates management’s ongoing vigilance regarding the issuance of any new EEDG shares.”
Written by Alyssa Gerace