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BARBUDA, WEST INDIES-CCI Group has acquired a leasehold interest in and purchase option for the Palmetto Beach Hotel on the island of Barbuda, West Indies. The Palmetto Beach Hotel is a boutique resort consisting of 24 ocean front rooms. The resort property is located on 90 acres of land, of which the hotel premises occupies approximately 10 acres.

Traded on the OTC Bulletin Board and formerly known as Caribbean Clubs International Inc., the property is the first resort acquired by CCI, which plans to sell private memberships to boutique style resorts located in the Caribbean that are owned, leased or managed by the company. CCI expects to build a portfolio of boutique hotel properties and gradually convert the properties to private clubs for exclusive use by its members. The company says it expects to generate revenue from two sources–the operation of each resort and the sale of memberships. In the industry, operators are typically compensated by receiving 3% to 4% of gross revenues and 8% to 10% of net revenues of the managed resort.

The price of the leasehold acquisition and the purchase option was not revealed by the company in its SEC filing regarding the transaction and the company’s CEO Fred Jackson, one of two employees, did not return a phone call seeking comment. In another recent filing the company estimated its cash requirements for the next 12 months at $5 million, of which $4.3 million was the cash portion necessary for the acquisition of two resorts. “We expect to acquire resort properties through a combination of cash and debt payable to the seller,” states the filing. “The amount of seller financing will bear annual interest of rates between 8 to 12% and will be secured by the resort property.”

Jackson, in a statement, said the Palmetto Beach Hotel exhibits many features of a preferred vacation destination including a swimming pool, oceanfront bar and a restaurant. Moreover, Jackson says Barbuda, a sister island to Antigua, is one of the least populated and least developed Caribbean islands, with only 1,200 residents and just three hotels, one of which is Palmetto Beach. The island has long been a mecca for those desiring exclusive privacy in an unspoiled Caribbean atmosphere, he adds, and is a scuba diving destination because the many reefs surrounding the island feature hundreds of shipwrecks.

CCI was incorporated in Utah in 2000 under the name of Kinship Communications Inc. and shortly thereafter entered into a product distribution agreement to distribute vehicle accident analysis and reconstruction software to municipalities. In April 2001, the company completed an IPO, raising gross proceeds of $102,750 in connection with the sale of 102,750 shares of its common stock. During the first quarter of 2002, saying Sept. 11 caused municipalities to become more concerned with homeland security than accident reconstruction software, existing management terminated its efforts to sell the software product and began pursuing various potential merger, acquisition, or new business opportunities.

In November 2002, management entered into a share exchange agreement with Caribbean Clubs International Inc., a Delaware corporation. Pursuant to the agreement, all of the shareholders of CCI-Delaware exchanged their common shares for Kinship common shares on a 1 for 11.8139 ratio. As part of that transaction, then officers and directors resigned and were replaced by the current officers and directors, Kinship’s name was changed to Caribbean Clubs International Inc., and CCI-Delaware changed its name to CCI Resort Development Corp. and became a wholly owned subsidiary of Caribbean Clubs International Inc.

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