VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 01/02/15 -- Alpha Peak Leisure Inc. (TSX VENTURE: AAP.P) (the "Company") is pleased to announce that they have entered into a four-year strategic cooperation partnership framework agreement (the "Strategic Cooperation Framework Agreement") with China Travel Service (H.K.) Ltd ("CTS"), a subsidiary of China Travel International Investment Hong Kong Limited ("China Travel", HKEx Stock Code: 308), whereby CTS and the Company will jointly market and promote Swallows' Gully, beginning February 1, 2015.
Key Terms of Strategic Cooperation Framework Agreement
Under the Strategic Cooperation Framework Agreement, which is subject to the completion of the Company's qualifying transaction, it is contemplated that CTS will formulate an extensive marketing strategy and coordinate distribution channels for the promotion of Swallows' Gully, which may include CTS travel agency promotion, advertising through media channels, as well as public outreach programs.
In the first year of cooperation, the parties anticipate collectively contributing up to RMB 5,000,000 towards the marketing budget, with CTS contributing 40% and the Company contributing 60% of the total. In return, CTS will receive incentive rewards for helping Swallows' Gully attain the following visitation targets:
-- incentive reward of RMB 2,000,000 if visitation to Swallows' Gully
exceed 200,000 by the end of calendar year 2016;
-- incentive reward of RMB 4,000,000 if visitation to Swallows' Gully
exceed 400,000 by the end of calendar year 2017; and
-- incentive reward of RMB 5,000,000 if visitation to Swallows' Gully
exceed 500,000 by the end of calendar year 2018.
Finally, the Company agreed to grant upon execution of the Strategic Cooperation Framework Agreement (which grant remains subject to the approval of TSX Venture Exchange) to CTS 220,000 share purchase warrants, with each warrant entitling CTS to acquire one common share of the Company at the price of $2.50. These warrants are valid for a period of 4 years, throughout the period of cooperation between CTS and the Company.
Reasons for Entering into the Strategic Cooperation Framework Agreement
The Board believes this strategic partnership relationship with a subsidiary of China Travel such as CTS will allow the Swallows' Gully project to gain greater recognition in both the domestic tourism market and overseas. As China's largest travel group, China Travel is the state-owned tourism and travel agency arm of the People's Republic of China. With over 80 years of experience, China Travel has an exceptional reputation in the travel industry and a diverse, multi-tier service system and network.
"It is a great opportunity for us to work with the largest travel service in China. Partnering with a subsidiary of China Travel such as CTS will help us achieve our target visitation goals," said Alpha Peak Chairman and CEO Dr. Dennis Tam. "We are very happy to have such a strong partner on board and we look forward to maximizing these synergies. Going forward, we will continue to explore new business opportunities and strengthen our partnership with CTS and its corporate parent, China Travel, as well as leverage China Travel's extensive experience in tourist attraction management to operate Swallows' Gully. The Board believes having such a partnership to market Swallows' Gully will provide an ideal springboard for Swallows' Gully."
This notice is not an offer of securities for sale in the United States. The securities of the companies referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws of the United States, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements under the Securities Act and applicable state securities laws of the United States.
Any offering of securities will be made by means of an offering document. Such offering document will contain detailed information about the Company and its management and financial statements.
ON BEHALF OF THE BOARD OF DIRECTORS OF ALPHA PEAK LEISURE INC.
Dennis Chi-Wai Tam, Chairman, Chief Executive Officer and Director
Forward-Looking Statements:
This press release contains forward-looking information within the meaning of Canadian securities laws. Such information includes, without limitation, information regarding the Company's contractual relationship with CTS and potential benfits thereof. Although the Company believes that such information is reasonable, it can give no assurance that such expectations will prove to be correct.
Forward looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking information provided by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking information as a result of various factors, including, but not limited to: the Company's ability to complete the proposed qualifying transaction; the state of the financial markets for the Company's equity securities; the Company's ability to obtain Exchange's final approval for the proposed transaction; and other risks and factors that the Company is unaware of at this time. The reader is referred to the Company's most recent annual and interim Management's Discussion and Analysis for a more complete discussion of such risk factors and their potential effects, copies of which may be accessed through the Company's page on SEDAR at www.sedar.com. The reader is also referred to the Company's Information Circular for a more complete discussion of such risk factors and their potential effects, a copy of which may be accessed through the Company's page on SEDAR at www.sedar.com upon filing of the Information Circular.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Alpha Peak Leisure Inc.
Dennis Chi-Wai Tam
Chairman, Chief Executive Officer and Director
(852) 9212-1666
dennis.tam@alphapeak.ca
Alpha Peak Leisure Inc.
Samuel Yuen-Wai Tsang
Vice Chairman, President and Director
(852) 9861-3293
samuel.tsang@alphapeak.ca
Alpha Peak Leisure Inc.
(Thurman) Tat Hong So
Chief Financial Officer, Corporate Secretary and Director
(604) 488-5219
thurman.so@alphapeak.ca
