SOURCE: Haz Holdings, Inc.

October 23, 2007 09:15 ET

HAZ Holdings, Inc. Announces Investment Banking Agreement for Funding of Up to $100 Million for Additional Hotel Acquisitions

FEDERAL WAY, WA--(Marketwire - October 23, 2007) - HAZ Holdings, Inc. (PINKSHEETS: HAZH), which manages a portfolio of full-service hotels, today announced that the company has entered into an agreement with a boutique investment banking firm focused on emerging growth companies, to provide acquisition financing of up to $100 million for expansion of HAZ Holdings hotel ownership portfolio.

The financing is expected to occur in increments of up to $5 million as HAZ Holdings identifies, conducts due diligence on and executes purchase agreements on new properties. Depending on the purchase price of the identified property, a number of properties may be bundled together for purchase with each financing increment.

Under terms of the agreement, the investment banking firm will act as a strategic advisor for HAZ Holdings to render certain business, financial, management, and other consultancy and advisory services to the company including, but not limited to: assisting to identify equity and/or debt providers and assisting with negotiations of terms; analyzing and evaluating the business, operations and financial condition of the company; preparation of a information for potential equity investors; screening of interested prospective investors; and structuring and negotiating acquisition transactions; planning and performing due diligence work; and assisting with the valuation of potential acquisition transactions.

HAZ Holdings' five-year business plan is to increase its hotel ownership portfolio by acquiring hotel properties that range in size from 100-300 rooms per property. The company's primary focus for hotel acquisitions is in North America, but once it has met its North American goals, HAZ Holdings plans to develop and acquire hotel properties in Europe and Asia.

"This agreement is the logical next step for the company to execute its strategy to expand its hotel ownership portfolio," stated Dr. Karim Bhanji, CEO of HAZ Holdings, Inc. "We expect that through this agreement, our investment banking partners will provide a number of vital services to the company, not the least of which is to assist with financing critical for us to acquire additional hotel properties. A larger hotel ownership portfolio would potentially increase the revenues and asset value of the company. The asset value is an integral aspect attracting institutional investors who are being targeted as future long-term investors for HAZ Holdings."

Shareholders and anyone interested in following the progress of the company are encouraged to subscribe to the company's mailing list located at http://investors.hazholdings.com/ealert.php, through which HAZ Holdings disseminates newly disclosed information, including press releases, notices of SEC filings, investor newsletters and other material, to subscribers directly by email.

About HAZ Holdings, Inc.

HAZ Holdings owns and manages three mid-scale, full-service hotels in the United States and Canada, under the brand names "Hotel Monarchy & Suites" and "Monarchy Inn & Suites" (www.hazhotels.com). HAZ Holdings' five-year business plan is to increase its hotel ownership portfolio by acquiring hotel properties that range in size from 100-300 rooms per property, while concurrently franchising additional hotels under its brand names. The Company's portfolio also includes the following wholly owned subsidiaries: Mortgage and Financial Institute, LLC (www.mfibanking.com), a mortgage brokerage company specializing in commercial and residential lending in Washington and Alaska; Nationwide Hotel Management, LLC, a hotel management company; KB Realty Group International LLC, a commercial and residential real estate sales company; Evergreen Sound Construction, LLC, a commercial and residential development company; and DoTravelDeals (www.dotraveldeals.com), a global travel booking engine.

This press release may contain "forward-looking statements." Although we believe that the expectations reflected in any forward-looking statements are reasonable, HAZ Holdings cannot guarantee future results, levels of activity, performance or achievements. Actual results may differ materially from the predictions discussed in these forward-looking statements. Changes in the circumstances upon which HAZ Holdings bases its predictions and/or forward-looking statements could materially affect its actual results.

Contact Information

  • CONTACT:
    Gemini Financial Communications
    A. Beyer
    951-677-8073
    Email Contact