Leisure Canada Inc. (TSX VENTURE:LCN) announced today that it has retained Dundee Securities Corporation (“Dundee Securities”) as its exclusive financial advisor as it implements plans to construct three 5-star resort hotel and vacation complexes in Cuba.
Dundee Securities will advise on corporate structure and assist in securing the financing for building on these sites. All three sites are currently leased by Leisure Canada on a long-term basis and are free of any claims by outside parties.
“We are moving forward rapidly with launching our hotel development projects in Cuba”, said Robin Conners, President & CEO of Leisure Canada. “Most of the groundwork has been laid for the construction of Monte Barreto, our first 5-star hotel, which is planned for a premium location in downtown Havana. With U.S. tourism on the horizon, we are excited about our future in Cuba and we are now at the point where we need to evaluate financing alternatives.
Leisure Canada has partnered with the Cuban government’s Gran Caribe luxury hotel development entity on the project on a 50/50 ownership basis, a first in the Cuban tourism industry.
Under the terms of the agreement, Leisure Canada Inc will pay Dundee a retainer fee of $200,000 with the potential for additional success payments.
Dundee Securities is part of the Canadian-owned company, Dundee Wealth Management Inc. They are an independent, fully integrated, research-driven investment dealer with institutional and retail distribution.
Dundee Securities is a member of the Investment Dealers Association of Canada and CIPF.
Leisure Canada (TSX VENTURE:LCN) is the leader in luxury resort development in Cuba, with multiple properties currently under development, including five-star hotels, convention facilities and championship resort golf courses. LCN is the largest foreign holder of surface rights in Cuba. The company’s unique Cuban business license allows for diversification into virtually any business sector within the country.
Currently tourism to Cuba is approximately 2.5 million visitors per year, but there is a shortage of accommodation, particularly in the luxury range to meet anticipated growth.
ON BEHALF OF THE BOARD
Robin Conners, President and Chief Executive Officer
—————————————- Havana Journal Comments—————————————-
I’m not sure how Leisure Canada can claim to be the “leader in luxury resort development in Cuba” when Sol Melia has a couple dozen hotels built and operating while, to my knowledge, Leisure Canada has never even broke ground on any project in Cuba, ever.
The company has been getting financing for YEARS yet has no date set for breaking ground on any project that I know of. We welcome all comments and certainly any proof by Leisure Canada that they have broke ground on any project in Cuba, ever. The Monte Barreto project was announced more than 12 years ago yet they are still trying to get financing.
Two years ago Leisure Canada raised C$15million from Dubai Profile Group for Cuba development yet this article above says Dundee will “assist in securing the financing for building on these sites”. How much money does Leisure Canada need and when will they break ground on any project in Cuba?