SARASOTA, Florida, December 7, 2016 /PRNewswire/ --
Kali, Inc. (KALY) today announced a contract with Harbormaster Development to manage the development of a new Caribbean marina. The project is currently slated for a specific property in Puerto Rico. Harbormaster Development has contracted Kali to manage an estimated $10 million development project and to subsequently manage the ongoing marina operation. The contract guarantees a $1 million management fee to Kali for the development phase of the project with various performance incentives that could lead to more revenue. The overall term of the contract is five years with the services agreement transitioning from project management to operational management at the end of the development phase. The agreement between Harbormaster and Kali includes an equity participation option for Kali. The development phase of the project is anticipated to start in 2017 and continue into 2018.
KALY's $56 Billion Market Opportunity
Earlier this year, Kali announced its entry into the $5 billion fragmented and underserved marina management market sector with the acquisition of Wave Marine & Yacht Services as the first acquisition in a comprehensive roll-up strategy. Since Kali's initial entry into the marina management sector, the Company has subsequently announced expanding into additional market sectors complimentary to marina management. Between the marina management sector and the complimentary sectors, Kali's total market sector opportunity encompasses over $56 billion.
CapRock Research Initiates Independent Analyst Coverage On Company Roll-Up
The Company also last week announced engaging CapRock Research to initiate independent analyst coverage with a first research report that is expected to include near and long-term stock price target recommendations anticipated to be published within the next two weeks. Industry analysis indicates that no dominant player currently exists in the marina management market. With no dominant player, KALY management considered engaging analyst coverage as an important step in communicating the value of KALY's efforts within an industry as of yet receiving little attention.
Last year, in regard to yet another marina related initiative in Puerto Rico, Ingrid C Colberg-Rodríguez, executive director of the Puerto Rico Ports Authority (PRPA), said "Puerto Rico is going to be the premier destination in the Caribbean for maintenance, repair and overhaul services of luxury vessels, while further fostering the growth of the service and tourism industries on the island" (Boat International). Puerto Rico's overall commitment to economic growth and the related incentives, some of which are particularly attractive for the purposes of marina development, have put Puerto Rico on top of Harbormaster Development's list of locations to build or update marinas in the Caribbean. Accordingly, the contract with Kali is anticipated to start in Puerto Rico and potentially expand within Puerto Rico or to other properties outside of Puerto Rico. The actual location of Harbormaster's first Caribbean project maybe outside of Puerto Rico depending on conditions and factors outside of Harbormaster's control.
Learn more about KALY: http://www.wavemarineservices.com
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and as such, may involve risks and uncertainties. These forward looking statements relate to, amongst other things, current expectation of the business environment in which the company operates, potential future performance, projections of future performance and the perceived opportunities in the market. The company's actual performance, results and achievements may differ materially from the expressed or implied in such forward-looking statements as a result of a wide range of factors.
SOURCE Kali Inc.