NEW YORK, Feb. 24, 2011 (GLOBE NEWSWIRE) -- Av1 Group, Inc. (Pink Sheets:AVOP) () announces today that after lengthy discussions with a local land owner of more than 400 acres in Mexico, Av1 Group's management team is proud to announce that a letter of intent is in the process of being drafted up. If this deal goes through, a local wholly owned subsidiary of Av1 Group will enter into a direct partnership with a local developer to begin building homes on the site.
A member of Av1 Group's board stated "This would be more of a long term project for us. Our goal would to be to develop this project in phases. Being that a significant portion of the site is already pre-approved for development this will allow us to step in at the right time and get things off the ground without waiting months for approvals and permits. We are pleased with management's ability to find such opportunities in the region, as these are the types of deals we want to be in. In addition to providing a steady revenue source on home sales, each home buyer stands to be another potential client to our micro credit business. We are already in the process of putting together a loan package which will serve to aid the home buyers in fully furnishing their homes. This will allow us to service clients on a multitude of levels and we think this is smart business."
If management moves forward with the project, the goal would be to develop the 10 acres over the course of the next six months. As the land is currently zoned for 20 homes per acre, a total of 200 homes could be build which would gross approximately $4 million in sales.
"While terms of the deal have not yet been finalized, we wanted to inform our shareholders of the progress we have been making so they understand the potential to come in the next few months. We anticipate having a letter of intent signed by the end of next week."
Safe Harbor: This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from that projected or suggested herein due to certain risks and uncertainties including, without limitation, ability to obtain financing and regulatory and shareholder approvals for anticipated actions.
CONTACT: (212) 913-0594 InvestorRelations@AV1Group.com New York, NY