We take it you have been very busy with WOWIO since becoming CEO – Can you tell us what you have been up to?
The two most important things for me to do with the Company is cleaning up the past. In order to do that we have to get the Company current with its filings and bring in business that will generate revenue and profit. I have been concentrating on those two items.
We hear you have decided to take the company in a new direction? Can you tell us more about this?
The plan is to build the Company in the restaurant, entertainment and tourism industries and also in property development
Are you going to be more active with communicating with your shareholders?
It is our intent to be very transparent keeping our shareholders more fully informed. As a part of this process we will be using social media and in particular our new twitter account @WOWIOINC
Are you working on updating or creating a new website for WOWIO?
We are in the process of developing a new web site, www.wowioinc.com. We hope to keep this site fully updated with lots of current information for our shareholders.
With this new direction you have taken, have you already secured any deals?
We first secured an option to acquire all the assets of Castlerock Bar and Grill, LLC. which consists of the following:
1. Land and buildings in Golden Valley, Arizona, consisting of 38 acres of land with a bar and grill and an arena that can handle up to 8,200 people at shows and rodeos. (This property was recently appraised at $2,800,000),
2. Land and Buildings in Dolan Springs, Arizona consisting of a café/restaurant and offices, and
3. A second leased space in Dolan Springs, Arizona with a restaurant located on the site which opens in January 2018.
We entered into an agreement for our wholly owned subsidiary to purchase 100% of the issued share capital in BLRR Corp., subject to current debt. BLRR Corp. owns the membership units of Pyjke Company One, LLC., the owner of an 11.2 acre real estate site in Huron, Northern California. Phase I will result in the development of 30 low cost homes that are desperately needed in the Huron area. Phase 2 will result in another 20 homes. The cost of the development, outstanding real estate loans and repayment of a grant for infrastructure provided by theCalifornia Department of Housing and Community Development will be paid back as the homes are sold. The first thirty homes will sell for between $220,000 to $240,000 following USDA appraisal guidelines for that area and our developer believes that EBITDA will be between 15 and 20% of the sale price. Our goal is to commence building in the second quarter of 2018. There are some issues outstanding in relation to this development. Currently there is a lawsuit between the City of Huron and Pyjke Company One, LLC which we are confident can be negotiated amicably.
We entered into a binding Letter of Intent to purchase Pact Enterprises, Inc. and Pact Holdings AZ, LLC. for $550,000 net of mortgages on the real estate and debt. Wowio is purchasing the land and buildings and the restaurant business located in the building. There are currently mortgages of $625,000 -on the property and other liabilities of approximately $45,000 which Wowio will assume. The purchase price is being paid as follows: $100,000 paid over thirty-six months commencing June 2018 and Convertible Preferred Stock that will convert to 1,225,757,747 common shares in Wowio. The land, building and the restaurant has a value of approximately $1,100,000. Wowio is paying a small premium to acquire this prior to the spring and summer busy season which begins in March 2018. The Sellers will hold a UCC filing over the stock and member units of both companies until the cash portion is fully paid. Pact Enterprises Inc. owns and operates Little Italy Restaurant in Williams, Arizona. This 200 plus seat restaurant opened in June 2017 and is currently achieving revenue of $40-50,000 per month. Williams is located about one hour from the Grand Canyon and the historic Route 66 runs through the town. There are approximately three thousand residents and over 30 hotels in the town. The town’s main business is tourism. Pact Holdings AZ, LLC owns the property. The lot size is almost 14,000 square feet (.320 acres) with a 7,400 square foot restaurant on the lot. The building used to be a bowling alley and was totally renovated. The restaurant features an Italian menu with a lunchtime buffet and full bar plus room for entertainment.