Last week, Nexia Holdings announced that it signed a Letter of Intent with Cedar Crest Development, Inc. to acquire 19 residential lots located in Hooper, Utah. The subdivision contains 22 residential lots, three of which have been already sold to third parties. According to the press release, the lots are all suitable for single family residences. In exchange for the residential lots, Nexia Holdings would deliver 400,000 restricted shares of Series C Preferred Stock that would have a stated conversion value of $2,000,000.
Richard Surber, CEO of Nexia, commented, “This type of real estate play is the type of transaction that our Real Estate Acquisition Strategy is designed for. Nexia’s team will work hand in hand with the prior owners and the bank to cure the default. The anticipated result will be a great piece of real estate free and clear of debt within 12 to 24 months held by a Nexia company. The level of success is highly dependant on market conditions for Nexia’s common stock and/or the local real estate market.”
Mr. Surber added, “Upon closing this transaction, I believe that it is safe to say that Nexia will have made significant progress in its efforts to build a portfolio of real estate holdings. The signing represents measurable progress by Nexia’s real estate management team. The subdivision is one of several prospects that the Nexia team will be working on in the coming months.” Nexia president Richard Surber concluded, “I am optimistic that many additional opportunities will be executed upon under our Real Estate Acquisition Strategy. Nexia’s team has shown great promise in identifying opportunities. I look forward to the successful conclusion of this project and many more.”
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