We have taken steps to allow Kraken Maritime Africa and Middle East, which will become Kraken Resort Holding, the Canadian corporate entity, to be publicly traded by the end of 2022.
To do so, we have retained the services of lawyer Michel Lebeuf, from the firm Dunton Rainville, who has participated in the listing of more than thirty companies in Canada and the United States.
The pandemic has accentuated the scarcity of private capital for startup projects. There is a lot of money available but portfolio holders are more than ever oriented towards companies that have already achieved a good business volume and a history of audited financial statements.
On the other hand, the financial markets are very active and small shareholders have a lot of liquidity and are looking to multiply their investment in this bull market.
The tourism market is interesting for the stock market since the assets are tangible (real estate, land, vehicles...) and often very few intangible assets.
The pandemic has caused significant damage to the international tourism industry and some might think that it is a risky market. Certainly, for companies that were in operation during the pandemic and are looking for financing to survive the significant debts they accumulated during this period, they are certainly at risk. However, for companies that have a promising project for a booming geographic market, they represent more of a high-yield investment opportunity. In fact, various specialists and global industry data show us that approximately 39% of the supply will have disappeared by the time the recovery is complete in 2024. This means that those who will be able to present an offer adapted to the new requirements of clients (sustainable development) and who will be in a good financial position to promote their offer, will have an excellent position in the market and will obtain very high occupancy rates.
A good part of the canvassing constituting the major uncertainty parts of the project have already been carried out by the promoters. Relations with local Moroccan and Dakhla authorities are already established and investment funds have already shown interest in the project as the Canadian company is disbursing the first investments.
An agreement signed with Mr. Jean-Robert Reznik provides for two investments of US$5M in the Moroccan operating company (total of US$10M), on December 31, 2022 and June 30, 2023. The objective is therefore to make two calls of CAN$8M, to honor these financial commitments and ensure the management of the Canadian company listed on the stock exchange.
In parallel with the first phase, the necessary meetings will be held with the Investment Funds of Qatar, the United Arab Emirates, the United States, Bahrain, Italy and Morocco in order to prepare the financing agreements. In this same period, all the necessary authorizations will be obtained for the land construction and the use of the waters of the Bay for the floating hotel units.
Mr. Jean-Robert Reznik will also work to bring to the table a hotel operator of international renown who will not only ensure the smooth operation of the Kraken Resort, but who will also be a shareholder in the project. It is not excluded that the Kraken Resort concept becomes a BRAND in the offer of a big hotel group.
The organization hopes to raise investments in the order of US$50 million in the Moroccan company by international investment funds and US$11.85 million for the operating partner. These amounts will complete the US$125 million financing package with the Moroccan partners and bank loans. After all the transactions, the Canadian company intends to control, as much as possible, as close to 50% of the Moroccan company, with the valuation of its shares.
All site preparations will be completed within the first six (6) months of 2024. The installation of the power generation infrastructure, the water treatment, the telecommunication tower, the conduits to the main complex and the secondary sites as well as the construction of the Kraken Guest House. This first building will serve as lodging for the various site managers who will come from Canada, France and northern Morocco during the construction period until the scheduled opening in June 2025.
In order to minimize construction time, several land-based units as well as all the floating hotel units and the floating concrete dock will be produced in Canada and Portugal and exported to Dakhla. Several local contractors will be hired for the access roads, the installation of the prefabricated units and the interior and exterior finishing.
The Kraken Resort will invite and receive the representatives of the tour operators of the priority countries in the target markets to make them discover the complex and receive their impressions and recommendations on the operation of the Resort and the possible improvements. This period will also conclude the break-in period for the reception, catering, animation, maintenance and security teams.
The Kraken Resort plans to welcome its first clients in June 2025. Just in time for the great Moroccan tourist season and the hottest season in Dakhla. This season is favorable for European tourists and kitesurfing enthusiasts. Promotional tours and bookings will have started 12 months before the opening, which should ensure that the occupancy rate is already at an interesting level in the first months of operation.
Copyright © 2022 KRAKEN RESORT - Tous droits réservés.
Optimisé par GoDaddy