SACRAMENTO, CA — (Marketwired) — 05/01/17 — Sunstock, Inc. (the “Company” or “Sunstock”) (OTCBB: SSOK) has signed a letter of intent to acquire a 208 room hotel located in Bakersfield, California. The hotel purchase price is $7,250,000 and the seller will finance approximately $5,450,000 at a fixed interest rate of 5% per annum.
Sunstock–s business strategy combines income producing real estate properties with investments in precious metals. The management team with over 20 years of hospitality industry experience has identified a distinct need for clean, safe and affordable rehabilitation housing facilities.
After purchasing the hotel, Sunstock plans to convert it over a two year period to a no-frills rehabilitation housing facility that will provide a clean, safe room and transportation to clients enrolled in a substance abuse treatment program. The hotel will be converted in phases to a no-frills rehabilitation housing facility which is estimated to take two years to complete. During this conversion, Sunstock intends to simultaneously operate as a hotel.
Sunstock forecasts that the no-frills rehabilitation housing facility will generate over 10 million dollars in gross revenue in the first 12 months of operation and over 20 million dollars in gross revenue in the second 12 months, and thereafter. Also, Sunstock forecasts that the current hotel guest occupancy will generate $1,500,000 in gross revenue in the first 12 months of operation and $1,000,000 in gross revenue in the second 12 months as it converts 100% to a rehabilitation facility.
Sunstock believes that these revenue predictions are sustainable and will prove to be a successful pilot project. Management plans to bring additional no-frills rehabilitation housing facilities to the California market and eventually expand nationally.
Safe Harbor Statement
Certain statements contained in this press release may be construed as “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 (the “Act”). The words “estimate,” “project,” “intends,” “expects,” “anticipates,” “believes” and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are made based on management–s beliefs, as well as assumptions made by, and information currently available to, management pursuant to the “safe-harbor” provisions of the Act. These statements are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of these statements. These risks and uncertainties include, without limitation, our history of losses and limited revenue, our ability to develop new products and evolve existing ones. For a more complete description of these and other risk factors that may affect the future performance of Sunstock, Inc., see “Risk Factors” in the filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. The Company also undertakes no obligation to disclose any revision to these forward-looking statements to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events.
Contact:
Mike Lee
Sunstock, Inc.
(916) 849-5507
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