VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 3, 2016) - Cuba Ventures Corp. (TSX VENTURE:CUV)(OTCBB:MPSFF)(FRANKFURT:IJA2) (the "Company") is pleased to provide an update for the business now that its first Consolidated Financial Statements for the new combined Company have been filed.
The Company would like to thank the shareholders for their support as we transitioned from a resource issuer to a tech issuer through the acquisition of Travelucion S.L. Management feels it is worth an explanation to the shareholders so they fully understand what the last year entailed and where the future may take us.
Going through a Change of Business (COB) and an acquisition is a complex, and often expensive procedure. Fortunately, much of these costs are one-time items associated with due diligence, consulting, professional fees, etc. In a case like Cuba Ventures, the COB took place in the 4th quarter of the fiscal year so the financial statements are not necessarily indicative of the business because it really only represents 51 days of revenues against one year of public company costs. For the year ended May 31, 2016, the COB was approved and Cuba Ventures opened for trading on March 21, 2016. That means the revenue reported for the year, $305,141, was just 51 days whereas the costs associated to the financials are reported for the whole year. These costs include, as noted in the financial statements, items as previously mentioned: due diligence; consulting fees; professional fees; promotional fees; management fees; and share issuance costs. All of which were one time charges related to the acquisition and COB. In addition, there are costs associated to the Company as a resource issuer before the COB. These would be principally the write down of the mineral properties the Company owned as MPH Ventures Corp. This figure alone is $2,785,317 and is a one-time charge. It must also be noted that the revenue figure of $305,141 reflects 51 days at the slowest time of the year for travel to Cuba and the increased cost of services reflects reinvestment in Travelucion for website and platform development as well as increased travel associated to marketing in North America as witnessed by the many TV and radio interviews.
Going forward, the quarterly financials will give the shareholders a much clearer picture of the financial status of the Company and will also garner a clearer picture of the disparity between low and high season travel months for Caribbean destinations such as Cuba. These one-time charges associated to the COB will be no more. This will make planning and budgeting easier to forecast and execute.
About Cuba Ventures Corp.:
Cuba Ventures Corp. is a publicly traded Canadian company capitalizing on the growth and unique opportunities in the USD $3.5 billion per year Cuban travel and tourism industry. Travelucion Media, a wholly owned subsidiary, is a digital media and marketing company which owns a vast portfolio of Cuba related websites and online portals providing travel information, featuring individual web assets for Cuba's popular cities and towns, online booking solutions and online reservations through proprietary software, catering to international visitors to Cuba. Travelucion's online travel division is a duly licensed retail travel supplier handling millions of dollars in sales annually.
Travelucion's 432 Cuba focused multilingual websites generate over 30 million page-views per year, directing traffic to the company's online booking and e-commerce sites. These online websites cover all facets of Cuba including over 80 travel destinations, hotels & resorts, bed & breakfast, tours, car rentals, restaurants, as well as Cuban culture, history, music, celebrities, sports, medical treatments and more.
Travelucion's revenues have been rapidly growing in the wake of the notable shift in American policy towards Cuba. With diplomatic relations now normalized and restrictions on qualified American travel to Cuba relaxed, opening of the multi-billion dollar travel market to the Caribbean nation is becoming a reality. Travelucion's continued media dominance over the past two decades has provided Cuba Ventures with a competitive advantage in the burgeoning Cuba travel space. With the relaxing of rules for American travelers to Cuba and the potential of further easing, growth and investment opportunities are on the rise in Cuba.
For further information on Cuba Ventures Corp. (TSX VENTURE:CUV) or Travelucion Media visit the Company's website at www.cubaventures.com or www.travelucion.com. Cuba Ventures Corp. has approx. 62.6 million shares issued and outstanding.
CUBA VENTURES CORP.
Steve Marshall, CEO
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.
This release includes certain statements that may be deemed to be "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedar.com for further information.