t will provide “completion funding” to DHPL that should culminate in opening the first Thunderbird branded property in India.
The INTERAA group, based out of Mumbai and Singapore, which has been an advisor to Thunderbird in India, is arranging the investment.
When fully documented, Delta will become a 51% owner in the hotel and Thunderbird will continue to operate the hotel with a management contract. Based on the letter of intent, with this infusion of new equity by Delta into the project, Thunderbird and the initial India partner in the hotel will be reduced to 49% ownership collectively. Delta will own the 51% balance.
Simultaneous with and contingent upon the execution and funding of Delta’s infusion of new equity in to the India project, the Group will issue Delta 840,000 shares of its common stock at a price of US$2.00 per share upon the completion of the definitive documentation.
The Group anticipates using the US$1,680,000 in proceeds for general working capital purposes. The completion of this transaction is subject to various conditions including the preparation, negotiation and execution of “Definitive Agreements.”